Fiat to Spin off Ferrari

Maybe Ford can finally buy it up like they have always wanted.

 

While the idea of owning a few shares of Ferrari stock sounds very fun to me I forsee a train wreck in the future.....




PDG

 

https://autos.yahoo.com/news/billionaires-could-buy-ferrari-181400492.html


Marcel Massini

 

Keep in mind that only 10% will be listed and out of that, only 100M shares of common stock will be issued. Might actually propell share price close to Tesla prices...

 

it certainly is an interesting prospect.

I do wonder if their awful experience with PAG (Volvo/Aston/Land Rover/Jaguar) will dissuade them from trying the luxury market again.

 

(Subject is in the wrong section, but..)

They're only selling 10% of the stakes to outsiders......

Secondly calling some of the most historical and finest brands (Maserati, Alfa Romeo, Lancia) the automotive world has produced "half ass" is a bit...dumb....

Thirdly Fiat can only survive and be profitable if it can sell enough products to overcome the vast investments needed to be competitive; therefore Fiat needs to be on every major market and share parts accross brands and products. See Toyota, BMW, VAG, Mercedes...

So it needs capital.

Fourth; you might want to check what happened and why to the US car industry in the past decade, if the US government didn't step in and Fiat didn't take over Chrysler their quite possibly wouldn't be anything left....

 

What would you Sir say if BMW buy this 10%? They already have Rolls Royce.

 

People keep saying Chrysler and Cash in the same sentence. They were bought weren't they? That implies need to sell. Unlike Ford, they could NOT sell off shares in Mazda to finance the blowout in the auto industry after the housing crisis and suv/oil crisis. The whole damn company went up for sale after Daimler held the hot potato for a while. The Chrysler building isn't even Chrysler anymore. I asked my broker about the ipo a few weeks ago and he told me you have to be associated with the banks doing the deal to get a shot a shares. Even now, we see there is only 60% maybe available in the deal. I am afraid this is "selling the jewel" to finance the debt. That debt came from Chrylser and probably Fiat too. If only they had made the new 500 years ago. Seriously, it looks like the Bugatti and Lotus story over the years now. VW and Lambo too. After the recent Charger ad busting on the Passat, I doubt VW will be buying. It's just sad and a lot like the losses that followed the bailout of Country Wide by BOA. Remember this was a purchase of a failing company followed by the sale of a near priceless marque with even more brand power and racing heritage. Cheapening it won't help it. Some wind tunnel calibration and turbo/compressor design/laziness is not the end of the Scuderia. A corporate train wreck might be. Also, the economy is not strong and that is effecting luxury sales, casinos, and racing. Lola folded and put Patrick Dempsey and Dyson racing on their heels. Lola! The last time Bentley won anything since the 20s was with a Lola inspired chassis. That's another scary ghost story from the sports car world. Funny that Dyson would be racing the Continental now after all of that.

 

+1, and it is also a bad move for FIAT to sell its best brand.

Serge is proving himself an idiot IMO.
Pete

 

I can dream, can't I?

 

it's all about Jeep & trucks = $$.....everything else could be used as landfill

 

Only 10% stake to be sold on 2015 per my broker. Big deal. They need cash. False alarm I think.

 

Yah I just heard 10%. More reasonable.

Half ass reflects the state of the brands as a corporation w the shareholder in mind. I love a number of the brands.

US car industry and US gov? I really do not want to go there. Lol.

 

thank you for not drinking the "the 200C is a great car!" kool-aid.

 

The assets of Porsche&Piech family clan (Austria) are estimated to be 44 billion €.
They could easily buy Ferrari.It is known that Piech allways wanted to buy Alfa Romeo and Ferrari. He has three Ferraris in his garage. His wife drives a LaFerrari and is in the board of directors of VW.
Why not buying Ferrari completely and using the LaFerrari as a company car?

 

Well, it may take a couple years, but I think pre-spinoff Ferraris will retain their value much better than post-spinoff Ferraris.

Start stocking up!

 

http://www.rushlane.com/wp-content/uploads/2012/10/Luca-di-Montezemolo-and-Ferdinand-Piech.jpg

http://www.zougla.gr/image.ashx?fid=1307559

 

Another interesting point of view.

Ferrari to split with parent company, Fiat Chrysler - Oct. 29, 2014

 

Ferrari is becoming just another company.
This move may not be the end of Ferrari but it certainly is the end of Ferrari as we know it.

 

"US car industry and US gov? I really do not want to go there. Lol. "

+1

 

A couple of thoughts...
Mercedes dumped Chrysler after a few years, makes you wonder about their management versus Fiat.
The car companies that failed here when the government jumped in (and lets not forget that Ford said 'no thanks') where really credit companies - and that (plus the unions) is the reason they failed. And I might add that the government and the unions are still a major problem for GM. I will buy Ferrari stock - I still wont buy GM stock.
Third, I realize that Alfa and Lancia were once great - but Ferrari was and still is. And the best thing to happen to Maserati in a long time was its relationship with Ferrari for the last 15 or so years.
I am not saying I know more than Marchionne, but I do wonder about quality over quantity.
However, by them giving up only 10% of the stock - he/they will still be in control. They will still be able to turn on the spigot if they want, hurting the Ferrari brand while increasing their revenues to Fiat.
I don't know where it will be listed, so I don't know what the rules are. But I would buy Luca Cordero di Montezemolo a share, just so he could stand up at Share Holder meetings and ask questions. Not that he needs anybody to buy it for him.

 

Target achieved!

 

So if Ferrari is spun off, how does that impact CAFE standards for the brand?

 

Fiat - Chrysler wants to get in on electric cars, just in time for $50/ barrel oil.

Dumb,Dumb,Dumb

 

How long do we think shareholders are going to be willing to fund the Formula 1 team at the current level without a major increase in success? I can see this going down the "how many cars does Formula 1 really sell? and is the cost justified?" path versus the way it has been since FIAT took over way back when..