What automaker will buy part of Ferrari?

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Road & Track is reporting that Ferrari is being spun-off from Fiat. Hope to get a discount/insider price on a new Ferrari? Become a significant …

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Road & Track is reporting that Ferrari is being spun-off from Fiat. Hope to get a discount/insider price on a new Ferrari? Become a significant shareholder. But the elephant in the room of this announcement is why would Fiat do this? Why sell Ferrari now after it posted significant profits and a record amount of cash in the bank at the end of 2013?

 

Why would Fiat want to loss the goodwill that Ferrari represents, they’ve owned Ferrari since 1969 (and that leads back to the convoluted Ford vs Fiat war to buy Ferrari, a tale for another day)? Possibly Ferrari’s heritage – and continuing worth – are too tightly intertwined with Formula 1; and it’s possible that FCA has read the handwriting on the wall, that F1 is about to go through a stretch in the wilderness. And with declining public interest in F1 and a resulting loss of revenue, that is not offset with declining costs, maybe FCA decided now was as good a time as any to extract maximum value from the brand.

 


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