Fiat Selling Ferrari?!?!?

Road & Track

Reuters

Whaaaa?!?! Fiat is selling the crown jewels? Killing the goose that continues to lay impossibly golden eggs? Selling the company that pre-sells every car which funds development?

My world is rocked. And I don't mean that in a positive way.

David

Ford should buy Ferrari.

I don't see it.. if they sold off Ferrari, they would have to kiss goodbye to Maserati too.. not to mention the new rear drive alfas

Putting 10% stock on the exchanges separate from FCA and giving the other shares to current FCA holders isn't selling. Sounds like they making "ownership" independent of the larger company.

In reply to moparman76_69:

^^This. Did you guys even read the article? They are spinning off the company from FCA while distributing a majority stake to FCA shareholders. That's NOT the same as selling.

Woody wrote: Ford should buy Ferrari.

Enzo's ghost would die of a heart attack.

R&T put a sensational headline up and the subhead is that they are spinning it off. Stupid R&T.

moparman76_69 wrote: Putting 10% stock on the exchanges separate from FCA and giving the other shares to current FCA holders isn't selling. Sounds like they making "ownership" independent of the larger company.

These is a family with a large stake hold as well almost 30%.

Would love me some Ferrari X plan though like ford if you own at least 1000 shares.

wearymicrobe wrote: Would love me some Ferrari X plan though like ford if you own at least 1000 shares.

On the bright side you may save $25 grand. On the down side you still need a quarter mill!

Group buy.

Here is what I had to say about this on F-chat yesterday:

I think you have to bear in mind that the Ferrari brand is the most recognized and respected brand in the history of the world. It deserves a market multiple that exceeds that of a car maker. (How many times have I told my kids--It's not a car, it's a Ferrari?)

By breaking off a small portion and allowing it to trade on its own, you allow the market to demonstrate that multiple.

Now for some crazy talk. What if the real buyer is NOT from automotive, but from a luxury/design brand house? LVMH? Ferrari would be a very interesting add to their mix. Or how about Apple? They are struggling with a very low multiple that values them as a tech company when they are really more of a lifestyle/luxury brand.

Anyway--all daydreaming. The reality is probably that this is one more chapter in the soap opera that is Italian corporate marriage and divorce. Guzzi and Ducati have each had more owners than I can count. Why not Ferrari too?

In the parlance of the Street: "..monetizing the Crown Jewels...."

AaronBalto wrote: Now for some crazy talk. What if the real buyer is NOT from automotive, but from a luxury/design brand house? LVMH? Ferrari would be a very interesting add to their mix. Or how about Apple? They are struggling with a very low multiple that values them as a tech company when they are really more of a lifestyle/luxury brand.

Perhaps this allows Ferrari to more easily merge with Harley to create the world's preeminent t-shirt & tchotchke company. ;-)

Assuming they are not selling to Ford, it is probably a good deal. I am old enough to recall when it was sold to Fiat, and I felt that it was the end of the Brand.Being owned by such a plebeian organization could only lessen the image.

Guess I was wrong eh?

So now they are going the other way. If managed properly, this separation from Fiat might elevate the image of Ferrari; but it will have to be managed with great consideration. If they just dump it on some purse maker, it won't go so well.

jde wrote: Perhaps this allows Ferrari to more easily merge with Harley to create the world's preeminent t-shirt & tchotchke company. ;-)

Red and yellow leather assless chaps at last!

AaronBalto wrote: I think you have to bear in mind that the Ferrari brand is the most recognized and respected brand in the history of the world. It deserves a market multiple that exceeds that of a car maker.

That's quite a claim!! Recognized by who & why? I'd have to say VW, Porsche, Mercedes Benz, Ford, Chevrolet, Jaguar (remember the E Type?), & Rolls are all at least as recognized as brands.

Benz, Bentley, Rolls, Ford Model A & T, Mini, Porsche, & Jaguar are all in my mind at least, just as or more respected and important brand names in automobile history.

NOHOME wrote: Assuming they are not selling to Ford, it is probably a good deal. I am old enough to recall when it was sold to Fiat, and I felt that it was the end of the Brand.Being owned by such a plebeian organization could only lessen the image. Guess I was wrong eh? So now they are going the other way. If managed properly, this separation from Fiat might elevate the image of Ferrari; but it will have to be managed with great consideration. If they just dump it on some purse maker, it won't go so well.

Fiat owns 90% of Ferrari … and they're offering, as an IPO 10% of Ferrari …retaining 80% …

moparman76_69 wrote: R&T put a sensational headline up and the subhead is that they are spinning it off. Stupid R&T.

They're not stupid! Headlines sell issues, accuracy is not an issue.

After pairing up with Car and Driver the new combine many call Car&Track or Road and Driver need to do all they can to keep subscriptions up and continue to draw advertisers.

In reply to Rupert:

I realize that it isn't stupid from their standpoint, but I consider it stupid so I based my comment on that.

It is really a testament to how many people only read a headline since the entire article explains what they are doing, yet so many people keep saying Ford should buy them.

Giant Purple Snorklewacker wrote:

jde wrote: Perhaps this allows Ferrari to more easily merge with Harley to create the world's preeminent t-shirt & tchotchke company. ;-)

Red and yellow leather assless chaps at last!

DUDE! that was a fresh cup of coffee!

This board is making my brain hurt right now. You guys should really read past the headline.

Woody wrote: Ford should buy Ferrari.

Yeah, like that hasn't been tried before....