Ferrari to be "sold off"

[Mike Harte]

According to this article in Pitpass: http://www.pitpass.com/52807/Ferrari...er-Automobiles , Ferrari is to be be split from Fiat-Chrysler.

One wonders whether this will have implications for the sustainability of the F1 race team!

[davyboy]

Originally Posted by Mike Harte

According to this article in Pitpass: http://www.pitpass.com/52807/Ferrari...er-Automobiles , Ferrari is to be be split from Fiat-Chrysler.

One wonders whether this will have implications for the sustainability of the F1 race team!

Most definitely.

[GT6]

Seems a very strange way to raise extra finance for the group with only 10 percent sold and the rest given away to existing shareholders, How much will it actually raise, ferrari is not a very profitable entity on it's own

[chillibowl]

overly cynical perhaps, but i just cant wait to see what investment vehicle rushes in to buy the brand!

[davyboy]

Originally Posted by chillibowl

overly cynical perhaps, but i just cant wait to see what investment vehicle rushes in to buy the brand!

With few exceptions, most low volume sports car companies struggle to remain viable as independent entities c.f. Lotus, Lamborghini, TVR etc... They only work when they're part of a larger auto family. If Ferrari are acquired by another auto manufacturer, then they will come under the motor sports strategy of that entity. If they're bought by a non auto concern then expect significant belt tightening to occur. Couple both the above with the chaotic Ferrari culture and you can rest assured the F1 programme will be very different from the present gravy train... that's if it remains at all.

[Teretonga]

Originally Posted by davyboy

With few exceptions, most low volume sports car companies struggle to remain viable as independent entities c.f. Lotus, Lamborghini, TVR etc... They only work when they're part of a larger auto family. If Ferrari are acquired by another auto manufacturer, then they will come under the motor sports strategy of that entity. If they're bought by a non auto concern then expect significant belt tightening to occur. Couple both the above with the chaotic Ferrari culture and you can rest assured the F1 programme will be very different from the present gravy train... that's if it remains at all.

Think about it.
It is being spun off, out of the present conglomerate that is no longer based in Italy. The head office of FCA is outside of Italy. 10% will be floated to raise capital for FCA. 80% will remain with the primary shareholders of FCA. It is being spun off out of FCA but real control will remain in probably Agnelli hands. 10% is with Piero Ferrari.

Fiat controls Chrysler, which is a subsidiary of Fiat. FCA is the holding conglomerate for both Fiat and Chrysler. Fiat will still own and control Ferrari, but separate from FCA.

[Paradise City]

Saward has this: http://joesaward.wordpress.com/2014/...n-off-ferrari/

The new Fiat Chrysler Automobiles has announced plans to list Ferrari on US and European stock exchanges. FCA owns 90 percent of the Ferrari shares (the other 10 percent belonging to the Ferrari family) and the plan is for 10 percent to be floated and the remaining 80 percent to be given to FCA shareholders. The result of the announcement was a leap in the value of FCA shares, which was obviously what it was designed to do. FCA needs to build up its value in order to attract more financing to help the company. It is doubtful that FCA will lose ultimate control of Ferrari as a result as Exor SpA, the holding company of the Agnelli family, still owns 30% of the company parent company.

[mountainstar]

I'll have to buy a few shares for my investment account for kicks.

[GTRMagic]

Does FIAT have to sell off Ferrari to raise the cash to pay off Mr Alonso for the next few seasons?