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FCA Spinning off 10% shares in Ferrari

Discussion in 'Fiat Global News' started by pra.agar, Oct 30, 2014.

  1. pra.agar

    pra.agar Regolare

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    350
    Bangalore
  2. VIJENDRA SINGH

    VIJENDRA SINGH Amatore

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    173
    DIBIYAPUR
    Linea T-Jet
    Thats disappointing:(:sorry::mad::rage::punch:
  3. zenwalker

    zenwalker Esperto

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    2,150
    Bangalore
    A sad story perhaps
  4. asimpleson

    asimpleson Esperto

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    3,000
    Heptanesia
    Linea 1.3
    I wish that they keep the design facility completely in Italy itself. The design DNA must not change. Businesses need restructuring, some get better, some get worst. Hope its the former in this case.
    cassini likes this.
  5. amogh

    amogh Staff Member Janitor

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    1,377
    Pune
    Grande Punto 1.3
    Ahhhhh !!

    Another misinterpretation of what is essentially a restructuring exercise !! FCA is NOT selling Ferrari. They are spinning it off and 10% of the Ferrari shares will be sold in the open market.

    • 10% of Ferrari shares are owned by the Ferrari family
    • 90% are owned by FIAT / FCA
    The ownership and control of Ferrari will very much remain with FCA and the Agnelli family (The Agnelli family controls 30% stake directly in FCA)

    The online media is jumping to the occassion to create some sensationalism. Let's not participate in the process.

    Thanks!
  6. pv_krish

    pv_krish Regolare

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    418
    Chennai
    Grande Punto 1.3 90 HP
    I also inferred the same from as what Amogh has said after reading the article, so did not react much.

    Ferrari is by itself a brand ambassador and a company owing it will never sell the same. It brings in with it the reputation that even company dreams to have.

    The spinning of 10% of shares it is raise market capital, probably for some R&D work or something else that will always be kept confidential.
  7. asimpleson

    asimpleson Esperto

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    Also, localizing production in some regions could bring costs/taxes down and perhaps improve sales, that is why I said let the design dna be authentic i.e.: Italian; production of same grade/workmanship/craftsmanship can be shared/managed offshore also. The article does hint somewhere (remotely) about that right?

    There were IIRC, some concerns with US workers when news that some Jeep models would be stopped or outsourced. They had to reassure the unions or something to that effect. There are domestic forces and politicians there who are promising new job creation and work guarantees.
  8. vayfiat

    vayfiat Amatore

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    220
    Bangalore
  9. prabhjot

    prabhjot Esperto

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    2,451
    delhi ncr
    The Ferrari brand is the world's most potent, culturally and financially. It will have astronomical valuations on the stock exchange (this 10% only), probably much more than just as part of FCA's balance sheet.

    I guess Marchionne's keen to extract capital from Ferrari, given its soaring valuations, in order to strengthen the rest of FCA, without in any way affecting Ferrari's R&D, creativity etc?

    FCA has to fund a slew of new models across all its brands, esp Alfa Romeo, and is debt laden, even though it is making big profits. Its margins are very tight, and could be vulnerable to a turn for the worse in the US market, the only one of its core markets that is truly buoyant/non-recessionary.

    AND: he may need capital for a merger/takeover/equity swap or some such with a certain small Japanese manufacturer who is the dominant player in India?! ;-)

    Don't see a problem with this, provided of course Ferrari's autonomy remains well-backed-up financially.
  10. ramjn

    ramjn Staff Member Janitor

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    5,244
    Chennai
    Linea 1.3
    I also guessed this. Could be a possibility once that Japanese manufacturer is out of its legal battle with the German manufacturer. :)
    cassini, asimpleson and prabhjot like this.

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