Ferrari chairman Luca Di Montezemolo to quit after 23 years

I can not guarantee what Marchionne will do in the next future about Ferrari, he has simply and clearly said during the press conference with Montezemolo :

- Ferrari will not directly become part of FCA, and will not be publicly traded
- Every Ferrari will be always made in Maranello, thinking to a Ferrari made elsewhere it is just an obscenity
- There will be a thoughtful increase of the production numbers, preserving in any case for first the exclusivity of Ferrari cars
- No Suvs with the prancing horse
- Ferrari MUST return to win races in the shortest possible time


About Maserati, You said a lot of malignancy and inaccuracies :

- Ghibli and Quattroporte have NOTHING to do with a Dodge Charger
- The frames of the two Maseratis, M156 (long) and M157 (short) are both Maserati projects, expressly made for next premium cars and Suvs. It will be used on the new Alfas and on the other new cars of the group.
- The Dodge Charger frame (Chrysler LX platform) is a 2006 Chrysler project, also currently used for the Dodge Challenger, Chrysler 300 and Lancia Thema.
- The interiors are totally different
- There are no Chrysler logos on Maserati parts, neither on the V6 engines
- Current Maseratis are not low quality products, made in stinginess .
- The two new sedan Maseratis are built in a new and modern plant ( the ex Bertone factory), with over 800 millions of Euro investment. This new plant is a jewel .
- The next Suv will be made in part of the refurbished big Mirafiori plant, with an other big investment of money.

I perfectly know how the things are, since I live in Turin and Turin it is not so big...
I personally know people working on these projects, I know how good is their job, and the result of their efforts.

In next future please avoid to chat about things you don't know.

Ciao

Andrea
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Thanks Ian. LdM leaves the company in FAR better shape than what he found it in, a fact people seem to forget. Not too bad for a clown hack lawyer. That said, eventually change comes to everything so let's give Sergio time.

 

I highly doubt Adrian Newey was talking to Domenicali. Newey can negotiate directly with Luca if he so desires.
I also highly doubt he ever had the desire to go to Ferrari after his consecutive WCC's at RB

 

All change at Ferrari | Features & Experts | Sky Sports Formula 1

Very much worth a look.

 

Thank you for putting this straight.

 

today's WSJ:
$34 mil severance pkg.

MARANELLO, Italy— Luca Cordero di Montezemolo is stepping down as chairman of luxury sports car maker Ferrari after 23 years and just days after long-running disagreements with its owner spilled into public view. (See moments that marked his tenure.)

Sergio Marchionne, chief executive of Fiat F.MI +1.02% SpA, which owns 90% of Ferrari, will take over from Mr. Montezemolo effective Oct. 13—the same day that Fiat Chrysler Automobiles, a new company created out of a corporate reorganization, is slated to make its debut on the New York Stock Exchange.

Ferrari has long been the jewel in Fiat's crown and Mr. Marchionne has so far resisted calls for him to sell a stake in the luxury brand to raise cash that could be used to realize Fiat's ambitious €48 billion ($62 billion) five-year plan.

Mr. Marchionne, speaking at a news conference at Ferrari's museum in Maranello on Wednesday, excluded an initial public offering for Ferrari in the near term, though he said that the final decision stood with Fiat's board.


Ferrari Chairman Luca Cordero di Montezemolo is leaving the sports-car maker after a dispute spilled into the public. Shown, a Ferrari race car during practice runs at the Grand Prix of Italy on Saturday. Getty Images
The executive has long opposed an IPO while Mr. Marchionne is leaving the option open, according to people familiar with the matter. The two executives have often been at loggerheads for a decade over many issues, according to a person who knows both.

Mr. Montezemolo will be paid €27 million, one of the richest severance packages paid to Italian executives in recent years. According to Fiat, he would get €13.7 million under a severance indemnity deal and €13.3 million for the remainder of his contract and an agreement not to compete until March 2017.

While it isn't yet clear what Mr. Marchionne plans to change at Ferrari, there is unlikely to be a significant shift in strategy—specifically the company's decision to cap production at about 7,000 vehicles a year to maintain exclusivity, according to analysts.

Mr. Marchionne, who in May said Ferrari production could be boosted to 10,000 cars a year without hurting the brand, left open the possibility of that increase being eased in over time.


"An important cycle at the company has ended and another one is opening that I hope will be even more important than the last one," Mr. Montezemolo said on Wednesday. He was occasionally teary eyed and thanked many people—including the former Ferrari driver Michael Schumacher who returned home yesterday after more than eight months in the hospital following a skiing accident.

Mr. Montezemolo said that his wife looked forward to him being less stressed on Saturdays and Sundays, when the Formula One races take place, and that he is happy that he will now have the time to pick up his young son from school.

While the rift between Messrs. Marchionne and Montezemolo has been brewing for some time, it accelerated on Sunday when Mr. Marchionne, speaking just hours before the start of the Italian Grand Prix, praised Mr. Montezemolo for having achieved excellent business results, but said that it wasn't acceptable that Ferrari hasn't won any titles since 2008.

"Sports results are absolutely fundamental for Ferrari and Luca knows that as much as I do," Mr. Marchionne said. "Winning is part of the company's DNA and that must continue."

Related
Corporate Intelligence: Fiat Chrysler Needs Ferrari's Formula
La Bella Vita: WSJ Magazine's Profile of Luca Cordero di Montezemolo 9/29/2011
Mr. Montezemolo said on Wednesday that recent poor results on the racetrack haven't affected Ferrari's bottom line. "They aren't connected," he said in response to a question at the news conference, noting that Ferrari's biggest market is the U.S. where Formula One is a niche sport.

However, Mr. Marchionne, who on several other occasions during the conference corrected Mr. Montezemolo, added: "But they are linked." He went on to say: "When I speak to dealers in the U.S., they're perfectly informed about how Ferrari is doing in Formula One."

Mr. Marchionne said that his appointment as Ferrari chairman isn't temporary and that he had no intention of replacing Ferrari's CEO Amedeo Felisa. Ferrari will remain independent from the rest of Fiat, which also owns Chrysler, he said.


Sergio Marchionne, left, poses with former Ferrari Chairman Luca Cordero di Montezemolo upon their arrival for a news conference on Wednesday. Agence France-Presse/Getty Images
Rumors of Mr. Montezemolo's departure overshadowed the Italian Grand Prix last weekend at Monza, Ferrari's home race, which took on the feeling of a farewell tour. A large contingent of European media followed Mr. Montezemolo everywhere during the event as he hugged his drivers and held an impromptu news conference on the steps of the team motor home.

At the track, Mr. Montezemolo pledged his love for Ferrari, shared his favorite memories of the circuit and generally skirted questions about any exit. He did say that he would be prepared to stay on for another three years, an indication that he may have held out hope until just the last few days that his tenure at Ferrari might continue.

"We are in front of the best economic and financial year of the Ferrari history this year," he said, pacing the paddock before Grand Prix qualifying on Saturday.

—Manuela Mesco and Christina Rogers contributed to this article.

 

Italian opera at its finest. Sergio wants ferrari to win at F1 he says its critical, he also wants it to be more like Lambo. When exactly was the last time lambo won a grand prix race. But part of it I get, ferrari buying experience is a no no for anybody with self respect, and the products are stylistcaly appealing, exciting at 10/10ths bit otehrwise wholy bland.

If youa sk me F1 has hurt ferrari products, I think we woudl have much ebtter ferraris if they competed at lemans GT3 and Gt4.

As to raising sales beyond 7k, that would take products. If ferrari lifted its so called limit they would sell no more cars, currently they a sell as many as they can.

7k cars is not that exclusive nor is 10k that different. 360s 430's they are just used cars.

Yes I woudl love to see less snobbish dealers, I would love to see that lightweight V6 stick ferrari. As someone said there are two types of ferrari owners, only one is currently being served, same problem at porche.

BUT and its a Big But, the two sportscars we have seen developed under segio are the 4c and the viper. Both suffered in the end from penny pinching and compromised vision. Ok I get the viper part, here guys is some small $$$ for an update of an out of production car to see what can happen.

But the 4c, a great shape and CF tub were promising. Strut suspension on a CF tub, its like GM in the fiero days, who would do such a thing excpet maybe an accountant who does not know or care. And an econo car motor, ok I get it, but why a crappy econo car motor.

You have to care about excellence segio, good enough is not good enough, the germans are sucessfulb because despite all their flaws they seem to strive to do it better and for excellence, they sure dont sell on design.

Yeah Mclaren can come out of this smellign like roses, if they come up with some great products, Like a 450-500hp NA engine and maybe heaven forbid a stick on the p13. The slavish adherance to tech for techs sake at the expense of driving pelasure has got to stop, at ferrari at Lambo at porche and at Mcalren. Exotic owners dont care about fuel economy, and soem of us are less inetreted in ease of use than enjoyment of use at all speeds.

So the last surviving sportcar brand with real great DNA is lotus, what it needs is a big brother, anybody interested?

 

Thanks for the thougthful post. I did not see the interview but I am sure Marchionne is smart enough to understand the concerns. So he will say what he thinks people want to hear. However, we know enough about him to be concerned that over time the brand will be affected by "big Fiat" thinking and in ways that are not predictable right now.

One thing I have learned over the years: When there is a change in leadership and the new leader gets up and says that "nothing will change," you can bet that lots of things will change.

 

and another new just arrived. Roberto Fedeli will probably leave for BMW. So Marchionne has lost even the Director of production...

 

I probably should have noted that part of the Fiat plan for Alfa Romeo is to use Ferrari designed engines. A big selling point.

Now if Ferrari isn't winning, why would one want a Ferrari engined Alfa?

Marcel is right, FCA cannot compete with Ferdinand Piech.

 

and you know this how?? You could see alot of people talking in the paddock at anytime. Team personnel are always talking with each other. There is nothing about this that is out of line at all. Mark Hughes is a respected source.
This article shows a very different side of what LdM management has affected. Enlightening Id say.

 

+1

 

Replaced by a Canadian. Nice

 

No, I believe he is a heavyweight bean-counter. My concern is that he will run (and destroy) Ferrari just as did the Detroit bean-counters from the 1960s until the turn of the millennium.

 

some say the brand was ruined already under Luca...turbos.

 

Thanks for posting

I noticed SM said not SUV but he did not preclude a 4 door Ferrari - Interesting

 

Rumors are that one reason is the weak performance of Ferrari's F1 team in recent years; another reason is that his Fiat boss wants Ferrari to expand its product lines to bring more value to the soon-to-be-listco Fiat group.

Is Ferrari heading towards the Porsche way?! Is it gonna head towards the profit-focusing zone by throwing away its traditional value? One easy way to do that is first to breach the ~7000 cars per year limitation.

What you guys think?

 

" Every Ferrari will be always made in Maranello, thinking to a Ferrari made elsewhere it is just an obscenity"
Assembled there, of many parts made elsewhere, as time goes on I would expect to see more parts made within the Fiat family...

 

You're right about Porsche. McLaren, I was told to get a P1 you had to buy 1 of this and 1 of that and another of this and that... Same stuff. Its human nature and believe me, the dealers would LOVE to play all those games with you- because they make lots of easier money that way... I dont see how Ferrari being so profitable was a detriment to Fiat. But I can see how Fiat is saying- we need more out of this than straight profits so lets leverage it. LDM seemed to know this would harm or destroy key elements that make Ferrari special. And I agree.

NO is right about this- its bad for Ferrari. What Fiat needs to do will necessarily force them to place many new burdens on Ferrari and that means, more volume (maybe not immediately), more models, more merchandise, more pressure on dealers to get you to buy even more options, more stingy warranty treatment (if that wasnt bad enough). In short I think this makes the Ferrari experience worse because it will likely enhance the bad stuff and diminish the good stuff. Compare to over at VW where there is a sugar daddy parent company backstopping the Bugattis and Lambos of the world. There the boutique marques needed the big parent to help them so they can treat their customers properly and deliver a quality product. Here the parent company dies without the boutique. In essence transferring mainstream problems to the small boutique... not impossible but Im sad to say theres a good chance we will look back on 9/10/14 as the day Ferrari stopped being Ferrari.

 

One thing I have learned over the years: When there is a change in leadership and the new leader gets up and says that "nothing will change," you can bet that lots of things will change.[/QUOTE]

so true...............seen it happen often enough

the other side of that is the NIH " I didn't do it so it can't be any good"
and I think we'll be seeing some of that with the "new Ferrari" company
never a dull moment

 

Maybe a stupid question, but why can't Ferrari buy there shares back from Fiat.

Does Ferrari still needs the help of Fiat?

Gr.
Xander

 

Ruined to the point of record profits. Yes a sad situation it has been lol!

 

This is a good post.

No matter what you think of him personally, I myself know exactly how it feels to have the "25 years of your life...thanks, we don't need you" meeting.

You walk out the door and don't look back.

As we are taking in previous posts, it will end the 'LdM Era'
The thing to remember is other than Piero, he was the last link to Enzo himself.
Pierro builds planes, and has little to do with Ferrari day to day operations.

LdM will most likely move on to be President of Italy..
Bonga..bonga.....

 

The petrol V6 engines in the new Maserati Ghibli and Qp are build and designed by Ferrari. Theý are not in use in any Chrysler or Jeep product whatsoever,

The Diesel V6 engine is build and designed by VM Motori, a Fiat company, and is in use in diff. power outputs in the Ghibli, Chrysler Qp, Jeep Grand Cherokee, 300C and Lancia Thema.....

 

VERY interesting........wow.