FCA Spinning Ferrari Off From Parent Company By 2015

Cameron Aubernon
by Cameron Aubernon

By this time next year, Ferrari will no longer be a part of Fiat Chrysler Automobiles, thanks to a plan announced today that will spin the exotic brand off from the rest of the Italo-American automaker.

Bloomberg reports FCA will sell 10 percent of its stake to the public, giving the remaining 90 percent to the automaker’s own shareholders. The shares will be listed in the United States stock market, with Europe possibly receiving some of those shares, as well.

According to Morningstar analyst Richard Hilgert, the split “unlocks the value” in the Ferrari brand, which could be worth as much as $7.4 billion. He adds that the move helps pull Ferrari out of the shadow of FCA, citing “the street’s perception of low profitability to no profitability” regarding the automaker’s market performance.

Speaking of performance, FCA stock climbed to $11.56 Wednesday after opening at $11.31, falling to $10.85 at the closing bell. Ferrari stock, meanwhile, would go for $5.90/share for FCA shareholders.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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12 of 34 comments
  • Deanst Deanst on Oct 29, 2014

    What FCA needs is a merger with a firm who knows quality and how to build a decent car - is Mazda busy?

    • See 5 previous
    • Morea Morea on Oct 30, 2014

      @redav "Even in such a scenario, don’t expect to see Mazda platforms used in Alfas." Mazda's are also FWD except for the Miata. FCA has announced that all future Alfas will be RWD.

  • TonyJZX TonyJZX on Oct 29, 2014

    Ferrari is a marketing company that seeks to license their name to Microsoft, Sony, Mattel, Panerai, Acer and whoever else will pay... they also run a F1 team on side and sell the 7000 six to seven figure supercars to the 1%

  • NightA4 NightA4 on Oct 30, 2014

    Wonder if Maserati should go with Ferrari. Definitely fits better there, than with the Dodges and Jeeps

    • See 1 previous
    • Fred Fred on Oct 30, 2014

      @Chan If the old Chrysler TC is any indication you're probably right

  • Morea Morea on Oct 30, 2014

    Here is a good write up describing how, despite this announcement, things are not expected to change at Ferrari: http://jalopnik.com/who-will-control-ferrari-now-1652197657