Italian supercar maker will be spun off in 2015.
Fiat Chrysler Automobiles (FCA) has just issued a press release announcing its plans to spin off Ferrari in 2015. As part of "a capital plan appropriate to support the Group's long-term success," ten percent of Ferrari will be publicly offered on US and European stock exchanges, with the remainder going to FCA stockholders. Company CEO Sergio Marchionne said: "as we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper we pursue separate paths for FCA and Ferrari."
The share sale will help fund FCA's $61 billion growth plan in creating future products. FCA Chairman, John Elkann, said: "the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business." Fiat has owned Ferrari since 1969, acquiring Chrysler earlier this year. Recently departed former CEO Luca Cordero di Montezemelo ran Ferrari since 1991. Upon severing his tenure with the carmaker, he declared it "an end of an era," with Marchionne taking over as Ferrari's CEO.