Sergio Marchionne, Fiat Industrial chairman, recently called for the full merger, but also cautioned that it would not be a precursor to a merger between the companies' auto businesses, which are in a three-year partnership, according to Bloomberg Businessweek.
Following a possible deal between Fiat Industrial and CNH, the combined company's shares would be traded on the New York Stock Exchange and have a secondary listing in Europe, the source stated.
"The plan to leave the country has been going on for a while, while we continue to cling to Fiat," said Giorgio Airaudo of the FIOM union. "A marriage cannot be one-sided. The car business is of national interest, and for that reason we need transparency."
Despite Fiat Industrial giving up the Fiat name if the merger is completed, Marchionne has informed employees that the operational structure of the business would not change, according to Bloomberg.
Fiat also recently announced that it will not buy a stake in Mazda Motor, but is planning to move forward with plans to increase its stake in Chrysler to more than 60 percent, Reuters reported.