The end of an era for Ferrari and Fiat
A 45 year relationship is coming to an end as Fiat-Chrysler announce they will be selling off their stake in Ferrari, starting with a limited public offering of 10% of the company’s shares in the luxury car manufacturer.
The announcement follows on from a major shake up of the company, when long time Ferrari CEO Luca di Montezemolo left the company. Stating that he believed that Ferrari was becoming “too American”, it may now be the case that the disagreement between di Montezemolo and Fiat-Chrysler CEO Sergio Marchionne could have been caused by the sale of their stake in the famous Italian marque.
Fiat-Chrysler will sell 10% of the company to the public, the remaining 90% of the company’s shares being distributed to Fiat-Chrysler shareholders. Those hoping to buy a few shares in the iconic company may want to think again. Back in 2011 Marchionne valued Ferrari at over $10 billion.
The move has been speculated as a way to free up some more money for Fiat-Chrysler’s own developments, with the Financial Times reporting that $60 billion dollars has already been earmarked for use on their own products.
Away from the ownership news, details of Ferrari’s new strategies have been announced. Now wealthy car collectors will be able to buy one-off cars that will cost millions, yet be entirely unique.
Recent example was the Ferrari Sergio. Produced in partnership with renowned Italian design firm Pininifarina, only six of the Sergios were built at a cost of millions.
Having capped production at just 7,000 cars per year to ensure demand exceeds supply, Ferrari are now moving further towards bespoke cars. The lure of having a unique Ferrari will surely get many millionaires excited.
What affect the sale of Fiat’s stake in the company will have on these services remains to be seen.
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