FCA to put Ferrari on the market

[EZ 2B Green]

FYI:

From: Automotive News

Manufacturing » Fiat Chrysler Automobiles


Fiat Chrysler to spin off Ferrari, list 10% stake on market


Related Topics

Spin-offs
Sergio Marchionne
Fiat Chrysler Automobiles

October 29, 2014 - 9:13 am ET

MILAN (Reuters) -- Fiat Chrysler said today it would spin off luxury carmaker Ferrari and list a 10 percent stake on the market as it seeks to raise funding for its ambitious $61 billion growth plan.

The carmaker said the board had mandated its management to complete the spin-off next year. It said the remaining 90 percent would be distributed among FCA shareholders -- who include the Agnelli family that founded Fiat.

The group, which moved its own primary listing to New York on Oct. 13, expects the Ferrari shares to be listed in the U.S. and possibly a European exchange.

"As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari," FCA CEO Sergio Marchionne said in a statement.

[The_Greg]

Wow. Not long ago Sergio mentioned that there is room for a car maker bigger than Toyota and that it could be done by a merger involving FCA by 2018. Sergio also expects to retire (?) or otherwise leave around 2018.

[100]

Spinning off Ferrari will help the Viper. (One Halo Supercar.)

[slysnake]

Spinning off Ferrari will help the Viper.

That's my thinking too. I was always worried they would kill it because it competes with Ferrari. Look, the Dodge Avenger is their second best selling Dodge, but I heard they are ending production of it because it competes with the Chrysler 200.

[Bryan Savage]

I thought this was very interesting. I wonder what shares will cost?

I think that some on here own Ferraris. Do they share anything at all with any other brand? Something tells me that Ferrari owners are snobby enough to demand that everything is exclusive. Not to dog on owners, but the price point is high enough that no Ferrari owner wants to be told that they share reflectors with a Fiat 500 like a couple people have told me.

I'd always wondered how the financing works with Ferrari. They are not a volume-manufacturer, and they spend eye-watering amount of money on R&D and F1, so I've wondered where the money came from. I assumed it was from Fiat, but maybe I'm all wet. If they can survive on their own, then power to them. Though I feel that Sergio should have told Montezemolo that he should ride it out for a little while longer.

If Fiat is only going to hold 10% of Ferrari, then what happens to Sergio's plan to double Ferrari's production?

[Uncle Paul]

Will use the money to pay down debt.