Fiat Chrysler announced today, according to a press release issued by Fiat Chrysler Automobiles (FCA) via PR Newswire, that they will be stepping away from the Ferrari brand. They plan on listing about 10 percent of Ferrari, which will raise roughly $1.15 billion according to Bloomberg.
This deal, which is expected to be completed by next year, will give Fiat Chrysler Automobiles (FCA) resources to cut debt and focus more on mass production. However, Sergio Marchionne will remain head of Ferrari, a position he took over after Luca di Montezemolo stepped down.
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“I am delighted to have taken this additional step in the development of FCA,” said John Elkann, Chairman of FCA, in the press release. “Coupled with the recent listing of FCA shares on the NYSE, the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business.”
What does this mean for Ferrari in the long run? Nobody is sure, but odds are Marchionne will ramp up the production of Ferrari models and make them more accessible to buyers. Maybe this means cars like the LaFerrari won’t require you to already own a healthy stable of Ferraris.
Is this a good decision for Ferrari’s future? Leave your thoughts on the spin off in the comments below.
(Sources: Bloomberg, PR Newsire)
(Image Source: Ferrari)