That didn’t take long. Mere days after Luca di Montezemolo stepped down from his position as CEO of Ferrari, potentially massive changes are coming to the brand that Enzo built. Fiat Chrysler Automobiles (FCA) has announced plans to separate Ferrari from FCA, with 10 percent of the company being offered on the open market, and the rest to be divided up among FCA stockholders.

Now I am not very well versed in the art of market dynamics, hostile company takeovers, or any of the garbage really. I write about cars that go fast, not how to manage a hedge fund so you can afford to buy one. With that in mind, I have been scouring the internet for smarter thoughts from smarter people about what this can mean. Jalopnik did some digging into who the company will actually belong to, and Road and Track snagged AutoPacific Product Analyst Dave Sullivan for his thoughts.

Let’s start with the actual sale. Fiat owns 90-percent of Ferrari. Of that 90, 10-percent is hitting public markets. While anyone can buy the 10 percent that is hitting the public market, the majority of Ferrari will still be owned the same people who own it today, the Agnelli family. The Agnellis started Fiat, and today they still hold a controlling 30 percent stock in the company. That means that after the big 90-percent chunk of Ferrari gets handed to new and current shareholders, the Agnelli family will still have about 27-percent. The 10-percent of Ferrari that is not owned by Fiat right now is actually owned by Enzo’s son. So that means when all is said and done, 37-percent of the company will still be held and controlled by the people who hold and control it today.

With that in mind, there still seem like there could be some drastic changes coming for the Prancing Horse if R&T’s piece with David Sullivan is correct. Sullivan is quick to point out that despite being owned by a massive company like FCA, Ferrari has always run as an independent and autonomous unit. When Ferrari is suddenly being forced to report to a mob of shareholders that autonomy goes out the window. In the words of Sullivan himself, “It does make me wonder who will run the company a year from now.”

Like is traditional with situations like this, this announcement raises more questions than answers. Is this why Montezemolo left? What will happen to the relationship between Ferrari and Maserati? Will there be new plants, new cars or greatly expanded production numbers?

As always, we are keeping our ears to the ground to get all of the information about this situation that we can. Stay tuned to be updated on everything that we can find.

Click past the jump to read more about Ferrari’s sale.

Why it matters

In the short term, Ferrari will very likely continue to run as normal. Also, just because the company is being sold off from Fiat doesn’t mean the company is going to drastically change. Ferrari is worth selling because it is Ferrari, and the shareholders won’t want to change that profitability too much.

Expect high-end supercars, limited-production models, and of course the Formula One team to all survive the sale. These are the things that make Ferrari worth money, so if anything, you will see an increase in these things over the next few years.

It is also important to note that none of this is official. There are many regulating bodies and legal hoops that can appear and shoot this entire spin-off out of the sky.

Keep it locked here. We will let you know more as we get it.

Source: FCA Group

FCA Announces Board Intention to Spin Off Ferrari S.p.A.
The Board of Directors of Fiat Chrysler Automobiles N.V. (NYSE: FCAU) (“FCA”) announced that in
connection with FCA’s implementation of a capital plan appropriate to support the Group’s long-term
success, it has authorized the separation of Ferrari S.p.A. (“Ferrari”) from FCA. The separation will be
effected through a public offering of FCA’s interest in Ferrari equal to 10% of Ferrari’s outstanding shares
and a distribution of FCA’s remaining Ferrari shares to FCA shareholders . The Board authorized FCA
management to take the steps necessary to complete these transactions during 2015. FCA expects that
the Ferrari shares will be listed in the United States and possibly a European exchange.
“I am delighted to have taken this additional step in the development of FCA. Coupled with the recent
listing of FCA shares on the NYSE, 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” said John Elkann, Chairman of FCA.
FCA CEO Sergio Marchionne added. “Following our acquisition of the minority interest in Chrysler earlier
this year, the transformation of Fiat and Chrysler into FCA was completed earlier this month with our
debut on the New York Stock Exchange. 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 that we pursue
separate paths for FCA and Ferrari,” Marchionne continued, “The Board supports management’s
determination that this transaction represents FCA’s best course of action to support the long term
success of the Group while at the same time substantially strengthening FCA’s capital base.”
The spin-off of Ferrari will be subject to customary regulatory approvals, tax and legal considerations,
final approval of the transaction structure from the FCA Board of Directors and other customary
London, 29 October 2014

Press release
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