Ferrari being sold.."for being too American"

[PL510*Jeff]

MILAN — Fiat Chrysler Automobiles said Wednesday it will spin off sports car maker Ferrari into a separate company.
The company said in a statement that spinning off Ferrari was part of a plan to raise capital to support the new merged carmakers' future growth.
Fiat Chrysler CEO Sergio Marchionne said in a statement that it was "proper that we pursue separate paths for FCA and Ferrari" following the completion of the merger of Chrysler and Fiat with a listing on the New York Stock Exchange earlier this month.
A Ferrari spinoff has long been speculated as a way to unlock value in Ferrari. The move comes about two months after an awkward management transition at Ferrari that saw the longtime chairman Luca di Montezemolo resign after a public spat with Marchionne.

 

[2112]

wow, soon to owned by Wall Street?

 

[twobjshelbys]

I read this that they trying to split Ferrari off to a private group before the merged portions of Fiat/Chrysler hit the US stock market. That keeps Ferrari private. There are claims that it's a separate public company. The former makes sense, the latter doesn't. I guess if start to see an IPO then it's the latter.

 

[2112]

No argument on that,

But if we are "Unlocking the value" on Ferrari, where is that going to be realized?

I am guessing it will end up as you said, an IPO.

 

[twobjshelbys]

I just can't see Ferrari ever wanting to have a bunch of stockholders, analysts, and a board of directors whose only mission is stockholder equity looking over their shoulders.

 

[2112]

Again, agreed, but I can still see it happening.

 

[RALPHIE]

Somehow, I think it will still be linked to Fiat, but not to Chrysler.

 

[Empty Pockets]

"Ferrari being sold.."for being too American""

We mustn't have THAT...oh, no, no, NO... :bored

 

[pvgtX2]

I read this that they trying to split Ferrari off to a private group before the merged portions of Fiat/Chrysler hit the US stock market. That keeps Ferrari private. There are claims that it's a separate public company. The former makes sense, the latter doesn't. I guess if start to see an IPO then it's the latter.

Ferrari sold about 7,000 cars last year, accounting for about 12 percent of Fiat’s 2013 operating profit. The Fiat group sold about 4.4 million cars last year.

That pretty much sums up the value of the spinoff company…..also it seems that only 10% of stock will be available the rest will be diluted back to Fiat / Chrysler shareholders.

Also pretty crazy to think that Ferrari is THE most valuable brand value in the world. Higher than Apple!

 

[Wwabbit]

That's as bad as the ring being owned by the Russians.

 

[david b]

I am an ex Ferrari owner. I grew very tired of the "your lucky we allowed you to buy our car mentality. That comes directly from their corporate offices so in my opinion whatever they get from Wall Street or a BOD or whomever else they deserve. Quite honestly if Ferrari never sold another car I could care less. Yes they build great cars and yes they have a great history but so do many others.

 

[ChipBeck]

I am an ex-Ferrari owner. I grew very tired of the "your lucky we allowed you to buy our car mentality".

David,

IMO, you rang the bell here. I have also owned a couple of Ferrari's but only because I took them in on trade at my dealership and drove them for a while. Getting parts and service was breathtakingly expensive and usually a pain in the a**. On more than one occasion I inquired about ordering a new Ferrari (a bucket list item) but the mentality you mentioned above really turned me off. Instead of treating me like a valued customer I was instructed as to what I would have to do to be allowed to buy one. I think I know how Henry II felt after being rebuffed. F*** Enzo.

That said, I still like the cars. Perhaps if it is a public company that culture will change and buying one will be a more pleasant experience.

Chip

 

[mmlcobra]

Amen!
Walked into an F car dealership in the past and got the same treatment.
WHY would I want to spend MY money there?
Best,
Mark

 

[GTdrummer]

ferraris have changed--but not so much the dealerships or brand. The 458 can be a daily driver and service is not awful. The dealers, by and large, are still peckerheads. By contrast, McLaren bends over backwards (as I did when I wrote the check--but that is another story)

 

[RALPHIE]

Times have sure changed from the old days of Johnny von Neumann at Competition Motors, and Chick Vandergriff at Hollywood Sports Cars - they would sell anyone a Ferrari if you could pay for it, and then if you competed, they would help - like Luigi Chinetti on the east coast.

http://www.september8th.com/news_neumann1.htm
http://www.tamsoldracecarsite.net/JohnvonNeumann.html

http://www.sportscardigest.com/cris-vandagriff-interview-and-profile/
http://books.google.com/books?id=IW...&q=Vandergriff, Hollywood sports cars&f=false

 

[Cobrar]

An oversight, or ???


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