link.png Fiat Chrysler parts ways with Ferrari← Back


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Fiat Chrysler Automobiles has announced plans to spin-off Ferrari, the luxury sports car maker that has been owned by Fiat since 1969 and which is known for being a key player in Formula One.
 
10% of Ferrari’s shares are owned by vice-chairman Piero Ferrari. The FAC are to spin-off the remaining 80%: 10% will be listed on New York’s stock-market (and possibly the European stock exchange) in a public offering, whilst 80% are to be redistributed to current Fiat-Chrysler shareholders to preserve Ferrari’s Italian heritage.  
 
This is part of a move to grow the company’s capital: the FCA wants to raise £38 billion in order to fund expansion in the coming five years and thereby strengthen it’s place globally in the automobile industry. Fiat recently merged with Chrysler, resulting in the creation of FCA which counts the luxury car brand Maserati, as well as Alfa Romeo, Chrysler, Dodge, Fiat and Jeep, in its portfolio.

FCA’s CEO, Sergio Marchionne commented: “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,”
Following this announcement yesterday, FAC’s shares rose by 12% on the New York stockmarket. 
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