• Nov 16, 2010
Sergio Marchonne, CEO of Fiat and the Chrysler Group, has stated that he is looking to raise some cash ahead of the upcoming Fiat/Chrysler merger. One possible way to do this? Reduce its 90 percent ownership stake in Ferrari through an IPO. Fiat estimates that Ferrari is currently worth $3.3 billion, and offering stock in the Italian sports car manufacturer could generate some serious coin.

Earlier in 2010, Marchionne had stated a Ferrari IPO was possible but that he also wanted the automaker to revert to its traditional 90 percent ownership stake. After a five percent stake purchase from Mubadala Development company, it got the 90 percent ownership stake it was looking for yet talk of the initial public offering seems to contradict Marchionne's plans.

If the IPO does happen, we have a good idea who will be first in line with a briefcase full of hundreds.

[Source: Automotive News – sub. req. | Image: Massimo Pinca/AP]


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    • 1 Second Ago
  • 12 Comments
      • 4 Years Ago
      Ferrari say "Guten Tag" to VW ;)

      and btw if Fiat need cash ... Alfa Romeo (Maserati?) is also in the focus of VW..
      • 4 Years Ago
      Every time I see this picture I always wonder what he's talking about.
        • 4 Years Ago
        He's just showing off his imaginary rave ball skills.
        • 4 Years Ago
        This is how much money we will have left after operating chrysler for a few years

      • 4 Years Ago
      Fiat will still own majority shares and controlling interest, so I doubt much would change and it is a good way to raise cash. Can't see this backfiring to bad UNLESS its another automaker trying to get in like VW...
        • 4 Years Ago
        Yeah, I agree. Fiat wants to sell SOME of it's control in Ferrari, not all of it. As long as they control a majority share, nothing is really going to change.
      • 4 Years Ago
      Report: Marchionne admits Fiat may sell off Ferrari ahead of merger

      ehm......source plz?
        • 4 Years Ago
        The title of the article is broadly misleading.

        I thought Fiat was planning to sell shares of Ferrari to raise more liquid capital? I would be silly to think Fiat would entertain the idea of selling the Ferrari brand off.
      • 4 Years Ago
      What about the business? Pushing numbers around to extract cash is one thing, but you must at some point actually do something with the core business of the company.
      • 4 Years Ago
      Good choice. At $3.3 billion, I think Ferrari is currently overvalued. Take advantage of that!
      • 4 Years Ago
      Ferrari will be bankrupt without a deep-pockets sugardaddy to tide it over from peak to peak. Their business model will not survive the cyclical nature of the car business. If they attempt to go it alone, before 2050 they will end up a label and not a car company. Witness the staggering fall of Porsche. From suitor to dependent in 36 months.
      • 4 Years Ago
      Marchionne is finally beginning to see the light and merge Fiat and Chrysler into a single company. Bravo! It's great to see that he is finally catching wind of the idea that he cannot compete with the Toyota/Lexus business model with a multiple brand strategy. The extra cost burdens would eat him up alive.

      I know for a fact that Magna Intl would be very interested in acquiring Magneti Marelli, and furthermore, they have money in the bank to do the job. So that sounds like a good idea.

      As for Ferrari, geez I wish they didn't have to do that. Ferrari belongs in the Fiat group; not with VW or any other manufacturer. In fact, Marchionne could retain Ferrari quite easily if he had started importing Alfa Romeos last year. The cash flow and increased business at Chrysler dealers would have been highly beneficial in this regard.

      PS Sergio: It's still not too late! There area lot of buyers in America just itching to get their greedy paws on a a brand new Alfa Romeo. Stop holding up the dam and open the flood gates.

      True, Marchionne simply needs the cash because Fiat business in Europe has fallen flat without the market distorting incentive plans that are now history, and as it swings to more expensive cars where Fiat pays the price for not giving enough attention to upmarket brands like Lancia and Alfa Romeo.

      Fiat/Chrysler has to rethink its global plan considerably:
      FIAT should be building subcompacts, compacts and midsize models with the 1.4L turbo as standard. LANCIA would offer the luxury upgrade; and ABARTH would build the sport tuned models.
      DODGE could offer a bit more power with a 1.8L turbo and the 3.6L V6 for larger vehicles. Durango would slide over to the crossover segment. Ram would remain decidedly in the Dodge camp and not a separate brand.
      JEEP would handle all SUVs.
      ALFA ROMEO would bridge the gap in the luxury field. Like to see an Alfa Romeo (ARX ?) version of the Dodge Journey.
      CHRYSLER would top off the Alfa Romeo line. The new Dodge Durango could form the basis for a more luxurious Chrysler stablemate.
      MASERATI would offer an uncompromising sport and luxury package.
      FERRARI would continue to be what it is..Ferrari!

      All Fiat/Chrysler products should be available at all Fiat/Chrysler dealers.
      ONE COMPANY WITH LOTS TO CHOOSE FROM.