Ferrari Worth Over $11 Billion, Says FCA Boss Sergio Marchionne

Aaron Cole
by Aaron Cole

Speaking at an unrelated Fiat 500 reveal last week, Fiat-Chrysler chief Sergio Marchionne said Ferrari is worth about $11 billion and he expects the prancing horse’s IPO to garner about $1.1 billion went it goes up for sale in October.

“There are clear expectations from ourselves as Ferrari brand is unique,” Marchionne said, according to Bloomberg News. “There is also a scarcity value as we are just selling a 10 percent stake.”

Marchionne’s estimate is roughly double what brokers said the Maranello-based manufacturer could be worth almost a year ago.

The $11 billion valuation before its October IPO may be ambitious, but so is Marchionne’s overall plan for FCA. He announced the move to spin off Ferrari last year as part of a larger plan to invest $61 billion back into FCA. The sale is made up of a 10-percent offer of Ferrari on the NYSE and a redistribution of FCA’s remaining 80-percent share to the Agnelli family, who also own about 30 percent of Fiat. The non-FCA owned 10 percent of Ferrari will stay with Enzo Ferrari’s son, current Ferrari vice chairman Piero Lardi Ferrari.

When it goes to sale in October, the IPO may raise about $1.1 billion for Ferrari. The company has said it won’t build any more than 7,000 cars per year, wouldn’t change its current business model nor would it be likely that anyone could takeover controlling interest.

That doesn’t mean it’s a bad investment. As a company, Ferrari is wildly profitable and will still sell you a $50 T-shirt if you can’t afford a share in October.

Join the conversation
4 of 20 comments
  • Runs_on_h8raide Runs_on_h8raide on Jul 06, 2015

    Ferrari may be worth more than that. It is the most recognized brand in the world. I forget the study, but I could swear it beat all major brands, Apple, Coke, etc etc. Speaking of Apple, I think they're sitting on 60 billion in cash...can you imagine the earthquake it would cause if they just forked over exactly what Sergio wants? The iFerrari la Ferrari 2s....made in China, designed in Maranello...complimentary iWatch with every purchase.

  • Freddie Freddie on Jul 06, 2015

    "Hello Sharks. I'm asking $1.1 billion for 10% of my company"

  • Chocolatedeath Chocolatedeath on Jul 06, 2015

    Only worth 800 million to me. just saying

  • Corey Lewis Corey Lewis on Jul 06, 2015

    Give to me one...hundred...BILLION..dollars! Muhahahah *pinkie to mouth*