In what appeared to be a sign of discord, Bloomberg reported in September [6]that Ferrari Chairman Luca Cordero di Montezemolo was poised to leave the super-car maker because of a clash over strategy with the brand’s parent Fiat, proclaiming "Ferrari is now American," which represents "the end of an era." It now seems Marchionne's Fiat strategy to compete with Volkswagen's Lambo division is no set to fail as Bloomberg reports: FIAT CHRYSLER PLANS TO SPIN OFF FERRARI. Expected to list in US and European markets, the IPO of 10% of Ferrari is expected to be completed in 2015... another sign of the top?
As Bloomberg reported in September, [6] there have been hints of discord...
Ferrari Chairman Luca Cordero di Montezemolo is poised to leave the super-car maker because of a clash over strategy with the brand’s parent Fiat SpA (F), people familiar with the matter said.
Montezemolo, who has led Ferrari for more than 20 years, may step down later this year, said three people, who asked not to be identified because the discussions are private. The executive has yet to agree on a severance package, and there’s no firm timing for him to leave, they said.
...
Montezemolo, who took charge of Ferrari in 1991, wants to maintain Ferrari’s autonomous status and limit sales to about 7,000 cars a year to preserve the brand’s exclusive allure. That clashes with Marchionne’s goal of having Ferrari bolster a shift by the group into upscale cars as part of Fiat’s merger with U.S. unit Chrysler Group LLC.
...
"Ferrari is now American,” which represents “the end of an era,” Montezemolo told close associates
Ferrari, which sold about 7,000 cars last year, accounted for about 12 percent of Fiat’s 2013 operating profit. The group sold about 4.4 million cars last year.
And now we find out that:
- *FIAT CHRYSLER PLANS TO SPIN OFF FERRARI
- *FIAT CHRYSLER TO MAKE PUBLIC OFFER FOR 10% OF FERRARI
- *FIAT CHRYSLER TO DISTRIBUTE REST OF FERRARI STAKE TO SHRHOLDERS
- *FIAT CHRYSLER PLANS TO LIST FERRARI IN U.S., EUROPE MKTS
- *FIAT CHRYSLER PLANS TO COMPLETE FERRARI SPIN OFF IN 2015
As DPA reports, [7]
Italo-American car group Fiat-Chrysler Automobiles (FCA) said Wednesday it was going to spin off its racing car subsidiary Ferrari as part of plans to raise fresh capital for the business.
"The separation will be effected through a public offering of FCA's interest in Ferrari equal to 10 per cent of Ferrari's outstanding shares and a distribution of FCA's remaining Ferrari shares to FCA shareholders," a company statement said.
Ferrari shares were going to be listed in the United States and, "possibly," on a European stock market, FCA said.
FCA needs money to put into practice a five-year development strategy centred on the relaunch of Alfa Romeo, a venerable Italian car brand suffering from an outdated product range and shrinking sales.
"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," Fiat-Chrysler boss Sergio Marchionne said.
* * *
Top?
