In a statement this week, the CEO of Fiat Chrysler Automobiles, Sergio Marchionne said that the headquarters of the newly merged Fiat Chrysler Automobiles will move to London.

Fiat currently is based in Turin while Chrysler is headquartered in Auburn Hills, outside of Detroit. The historic move cements a politically sensitive shift away from Italy, Fiat's home for the past 115 years.

"Headquarters will be in London," Marchionne said during a press conference at Chrysler's headquarters. "It's clear that group executive functions, the board, my office, some of my functions, need to operate out of London, but that doesn't mean that I'm giving up my operational responsibilities of the U.S. We will be multifaceted ... we will do stuff everywhere."

Marchionne, 61, has repeatedly said the merger would have no effect on jobs in Italy or elsewhere. Fiat will continue its manufacturing position in Italy with plans to expand production of upscale Maserati and Alfa Romeo cars over the next few years. 

In January, Fiat sealed a $4.35 billion deal to take full control of Chrysler, creating the world's seventh-largest auto group. The group said at the time that FCA would have its primary listing in New York, with a secondary listing in Milan, and that the holding group would be registered in the Netherlands and have its tax domicile in Britain.

Meanwhile, Fiat are investing three quarters of a million dollars upgrading their Tychy plant in Poland to build a replacement for the aging Punto. The five-door Punto replacement will launch in 2016. It will be a longer and wider version of the 500 three-door minicar that is built in Tychy and could be named the 500 Plus.