Fiat Chrysler Automobiles announces plans to separate Ferrari from FCA

[Rainer271]

Fiat Chrysler Automobiles announces plans to separate Ferrari from FCA

Ferrari 458 Speciale
Will list a ten percent stake on the market
The newly established Fiat Chrysler Automobiles (FCA) has disclosed plans to spin off Ferrari in 2015.

Earlier this month we heard Ferrari chairman Sergio Marchionne saying that he doesn't want to integrate Ferrari in FCA since "the mixing of their blood would be fatal for both" and now Fiat Chrysler Automobiles has announced they will spin off Ferrari. In other words, they are planning a separation of Ferrari from FCA through a public offering of FCA's interest in Ferrari shares representing ten percent while the rest of the shares will be distributed to FCA shareholders.

The transactions will be conducted next year and FCA is expecting these Ferrari shares will be listed in United States and Europe. The money obtained from selling these shares will go into FCA's massive $61 billion growth plan to use on future products. FCA chairman John Elkann declared "the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business."

FCA CEO Sergio Marchionne mentioned in a statement that "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."

Source: FCA via autonews.com

 

[Sunny]

Fiat Chrysler Automobiles (FCA) plans to spin off Ferrari and sell a 10% stake in the luxury carmaker on the stock market.

The remaining Ferrari shares would be distributed among FCA shareholders.

The carmaker wants to complete the spin-off next year, with Ferrari shares listed in the US and possibly having a European listing too.

The sale is part of a bigger plan by FCA to raise €48bn ($61bn; £38bn) to fund an investment plan.

Fiat Chrysler chief executive Sergio Marchionne said it was "proper that we pursue separate paths for FCA and Ferrari" following the completion of the merger of Chrysler and Fiat.

The combined firm listed on the New York Stock Exchange on 12 October.

Since then there has been management upheaval at Ferrari.

President Luca di Montezemolo left the company after a public spat over strategy with Mr Marchionne.

Mr Marchionne had been a vocal critic of the on-track performance of Ferrari's Formula One team, particularly its lack of world titles since 2007. He has pledged to get the team back to winning ways.

http://www.bbc.com/news/business-29817720

 

[hoffmeister_fan]

So, for my own clarity's sake, they are selling off Ferrari and thus it will no longer be part of the FIAT group?

Outside of maintaining the Ferrari's unique character and raising capital for FIAT, how does this move benefit Ferrari?

 

[hoffmeister_fan]

Well, Jalopnik cleared things up a little bit and allayed some of my fears

http://jalopnik.com/who-will-control-ferrari-now-1652197657