Fiat To Sell Ferrari To Finance Chrysler? Would Be A Shame
Did you know that Champagne, as we know it, wasn’t invented by the French? It was invented by the British. Christopher Merret documented the addition of sugar and molasses to a finished wine to create the bubbles in Champagne. This was six years before Dom Perignon (the supposed creator of Champagne) went to the Abbey of Hautvillers. And 40 years before Benedictine supposedly created Champagne. Merret presented his paper to the Royal Society which detailed the process now known as méthode Champenoise in 1662. Did that surprise you? Now check this out…
Fiat wants to increase their stake in Chrysler. They got the first 20 percent for free, but that was just a free sample. If they want any more, they’ll have to pay for it. But Fiat is a bit lean on cash at the moment, so how will they fund this venture? Well, Autoguide reports that Italian newspaper Il Corriere della Sera thinks that Fiat will raise the cash by selling parts of Ferrari. When this story hit the news, Fiat denied the reports to try and quickly squash this rumor. “There are no plans for any Ferrari listing,” said a Fiat spokesperson. But Il Corriere della Sera says that they have sources inside Fiat and they’re hinting that it is the truth and that Fiat will look to increase their stake in Chrysler to 51 percent. In 2009, Ferrari generated an operating profit of $334m. Chrysler’s 2009 was, well, bad. If this rumor turns out to be true, then the Champagne revelation won’t seem half as surprising, in comparison.
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Dom Perignon invented the cork to keep the bubbles in.
If true, Fiat would still maintain control of Ferrari and would mearly be using Ferrari's famous name to gather up some cash from outside investors. Not a bad plan.
Fiat realizes that it must bulk up in order to continue competing in the decades ahead. Building a serious position in the US market is one way to help accomplish that goal. Assuming Fiat has what it takes to run the course and does what needs to be done, then the Chrysler deal will work out very well. This is about a long run strategic play, not just short term tactics.
I'm confused (happens all the time). I thought Fiat was in a pretty good financial place. Weren't they were gifted a couple of billion dollars over the failed marriage with GM? Have they burned through that already? Were they given Chrysler or did they use some of their GM booty to purchase their share?
"Champagne" is merely a defined terroir. "Methode Champenoise" is sparkling wine produced the same way in, say CA. If you have worked in any restaurant that has it's head out of it's ass you would know how it all works. Yes the Brits invented it. If you don't know that, you really don't deserve to have gotten outta highschool.