The automaker is the subject of this essay. See List of Ferrari Road Cars for a list of the road models that Ferrari has made. Scuderia Ferrari is the name of the Formula One team. Ferrari, the 2003 biographical movie Enzo Ferrari is the name of the founder. Ferrari has other uses as well.
In 1969, Fiat S.p.A. purchased 50% of Ferrari, and in 1988, it increased its ownership to 90%. Fiat Chrysler Automobiles (FCA), which at the time of the announcement owned 90% of Ferrari, said in October 2014 that it intended to separate Ferrari S.p.A. from FCA. The reorganization that made Ferrari N.V. (a Dutch business) the new holding company of the Ferrari S.p.A. group and the subsequent sale by FCA of 10% of the shares in an IPO and concurrent listing of common shares on the New York Stock Exchange marked the beginning of the separation in October 2015. The remaining parts of the split involved distributing FCA’s investment in Ferrari’s business among FCA shareholders, with Piero Ferrari continuing to retain 10% of it. The spin-off was finished on January 3, 2016.
The business has garnered attention for its ongoing involvement in racing throughout its history, particularly in Formula One, where it is the oldest and most successful racing team, having won the most constructors’ championships (16), as well as the most drivers’ championships (48). Ferrari road vehicles are frequently regarded as a representation of riches, elegance, and speed. The 165,000 square meter (16.5 hectare) Maranello facility is where Ferrari automobiles are made. Ferrari was named the most powerful brand in the world in 2014 by Brand Finance. By market capitalization as of 2021, Ferrari ranks as the tenth-largest automaker at $52.21 billion.
In This Article...
The public company status of Ferrari
On January 3, 2016, the spinoff was fully completed, making Ferrari a stand-alone, publicly traded business. Exor NV, a business owned by ancestors of Giovanni Agnelli, a founding father of Fiat, is currently the only stakeholder of Ferrari. Piero Ferrari is still holding onto his 10% ownership. Marchionne served as CEO and chairman until his passing in July 2018.
The automaker’s headquarters are still in Maranello, Italy. Being a part of the sport ever since the modern era of Formula 1 began in 1950, it takes great satisfaction in being the oldest and one of the most successful racing teams in the sport’s history.
An independent Ferrari in phase eight
The goal was to create a totally independent business that was not under Fiat’s supervision. Ferrari N.V., a new business founded by FCA, was organized as a holding company.
Piero Ferrari continued to control 10% of the new company when ownership was transferred to it. FCA issued 10% of its shares in an IPO at the same time on the New York Stock Exchange.
Ferrari became a separate corporation after the division was fully completed. All of this was finished by January 3, 2016.
Since that time, FCA’s ownership of the company’s shares has decreased from the remaining 80% to just 22.91%. The remainder was offered for public purchase on the New York Stock Exchange.
Since 2016, Fiat has been an independent business and no longer owns Ferrari. The ownership was reorganized under the Ferrari NV holding company, with Piero Ferrari owning 10% of the stock. 22.91% of the shares are owned by Fiat Chrysler Automobiles, with 67.09% of those shares being publicly traded on the NYSE.
Finally, Ferrari separates from Fiat-Chrysler
Fiat Chrysler allocated its remaining 80% ownership in Ferrari to shareholders on Sunday. For every ten Fiat Chrysler shares owned by investors, one Ferrari share was issued. The supercar manufacturer began trading today in Milan after going public on the New York Stock Exchange in October.
Last month, Marchionne courted investors in Europe and the US to try and persuade them that the value of the luxury vehicle brand will rise if it separates from a mass producer. Nevertheless, Marchionne’s ambitious 48 billion euro ($52.1 billion) makeover of Fiat Chrysler will be highlighted by the loss of Ferrari’s earnings.
Cutbacks in the strategy were made as a result of slowing demand in China and a decline in the Brazilian auto industry. As a result, new models from the Alfa Romeo and Maserati divisions were postponed while investment was shifted to the expansion of the Jeep SUV brand.
Investors are concerned that without its crown jewel, Fiat’s worth could be significantly lower, according to Vincenzo Longo, a strategist at IG Group in Milan.
At 9:04 a.m. in Milan, Fiat Chrysler increased 1.9 percent to 8.625 euros, giving it a market value of 10.9 billion euros. Prior to the Ferrari separation, it had a market value of roughly 16.7 billion euros. Ferrari was worth 8 billion euros when it traded at 42.40 euros.
When Italy’s Fiat and its American partner Chrysler Group merged in the middle of October 2014, Fiat Chrysler was born. Between the time the Ferrari spinoff was announced two weeks later and its conclusion on Sunday, the stock price of Fiat Chrysler in Milan increased by 69 percent.
In an IPO two months ago, Fiat Chrysler sold 10% of Ferrari, an Italian company based in Maranello. The market value of the parent’s remaining 80 percent interest is around $7.3 billion. The remaining 10% is owned by founder Enzo Ferrari’s son, Piero Ferrari.
In 2014, 12 percent of Fiat Chrysler’s profit before interest and taxes came from the supercar sector. After GM rejected his request to include the American rival as a partner to share investments, Marchionne will now concentrate on the five-year reorganization of the parent firm, which is domiciled in London.
The 90:10 Years of Owning Fiat
Ferrari was already regarded as the legendary sports car maker it is today when Enzo died in 1988. The legendary F40 was the final car that “Enzo approved.”
Fiat increased their investments in the company when Enzo left the scene. They acquired a further 40% of the company, giving them a total ownership stake of 90%. The remainder of 10% was given to Piero, Enzo’s second son.
The business produced numerous stunning automobiles during this time, including the F50 and the F355 Berlinetta.
Fiat completes the divorce with Ferrari
Following the weekend distribution of the FiatChrysler group’s 80% ownership in the supercar manufacturer, Ferrari shares are officially trading on the Italian stock exchange.
This action marks the formal end of Fiat’s direct ownership of the automaker it acquired in 1969 and is intended to complete a flotation that was initially proposed more than a year ago. However, with a 24% ownership stake in Ferrari, the wealthy Agnelli family, which created Fiat, is still the company’s greatest shareholder. 10% of the company is owned by Piero Ferrari, the founder of the sports car company.
However, the Agnellis and Piero Ferrari really hold less than 49% of voting rights because long-term Ferrari investors have more say in business matters. The two sides agreed to give each other first refusal on any stock they want to sell when they inked an agreement in December to prevent any hostile takeovers.
Is Ferrari owned by Fiat?
In 1969, Fiat S.p.A., also known as the Italian Automobile Factory of Turin (Fabbrica Automobili Torino), acquired a 50% stake in Ferrari. Fiat increased its stake in Ferrari to 90% in 1988 (with Enzo Ferrari controlling the remaining 10%), although it never had full control over the business.
Is Ferrari separate from Fiat?
Contrary to many comparable but independent businesses, Ferrari, owned by the Fiat Group, continues to thrive following the passing of its charismatic founder and is currently one of the most prosperous sports car manufacturers in the world. Ferrari formally severed ties with its former parent firm Fiat Chrysler Automobiles in January 2016.
Do FIAT and Maserati share ownership?
The former holding company of FCA Italy is the subject of this article. Refer to Fiat Chrysler Automobiles for its replacement. See Fiat for the current automobile manufacturer.
The Italian holding firm Fiat S.p.A., also known as Fabbrica Italiana Automobili Torino (Italian Automobile Factory of Turin), was followed by Fiat Chrysler Automobiles NV. Its original and primary activity were in the automotive sector. Numerous brands, including Ferrari, Maserati, Fiat, Alfa Romeo, the Chrysler Group, and many more, were part of the Fiat Group. Fiat S.p.A., the previous owner of the Fiat Group, was to be merged into the new holding company Fiat Chrysler Automobiles NV (FCA), domiciled in the Netherlands, by the end of 2014. This was announced on January 29th, 2014. Fiat Group now belongs to Fiat Chrysler Automobiles. Fiat S.p.A. obtained the necessary shareholder approval for the merger on August 1st, 2014. The merger went into effect on October 12, 2014.
A group of investors, including Giovanni Agnelli, formed Fiat in 1899. Fiat has produced aircraft, farm tractors, military vehicles, and railway engines and carriages during the course of its more than 100-year history. By volume of production, Fiat (together with Chrysler) was the second-largest carmaker in Europe in 2013 and ranked seventh globally, ahead of Honda, PSA Peugeot Citroen, Suzuki, Renault, and Daimler AG.
Fiat has bought a number of other automakers throughout the years, including Lancia in 1968, Ferrari in 1969, Alfa Romeo in 1986 when the Italian government relinquished ownership, Maserati in 1993, and Chrysler Group LLC in 2014. Abarth, Alfa Romeo, Chrysler, Dodge, Ferrari, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Ram Trucks, and SRT are among the twelve brands now produced by the Fiat Group.
Fiat had more than 100,000 employees in Italy in 1970, the year the nation’s vehicle production hit a record high of 1.4 million units. In 2002, six Fiat factories in Italy produced more than 1 million vehicles, and the nation was responsible for more than a third of the company’s sales.
Cars with the Fiat brand are produced in a number of countries worldwide. Brazil, where the Fiat brand dominates the market, is the country outside of Italy with the highest manufacturing rates. The company also has factories in Argentina, Poland, and Mexico (where Chrysler-owned plants make Fiat-brand vehicles for export to the United States, Brazil, Italy, and other markets), as well as a long history of granting licenses to other nations to manufacture its goods. Additionally, it has many international partnerships and joint ventures, with the biggest ones being in Serbia, France, Turkey, India, and China.
Gianni Agnelli, the grandson of founder Giovanni Agnelli, served as Fiat’s chairman from 1966 to 1996. From 1996 until his passing on January 24, 2003, he was the company’s honorary chairman. During this time, Cesare Romiti served as chairman. Paolo Fresco, who served as chairman, and Paolo Cantarella, who served as CEO, briefly succeeded him. The chairmanship was thereafter assumed by Umberto Agnelli from 2003 to 2004. After Umberto Agnelli passed away on May 28, 2004, Luca Cordero di Montezemolo was named chairman. Agnelli heir John Elkann, who is now 28 years old, was appointed vice chairman, and other family members are now board members. Sergio Marchionne succeeded Giuseppe Morchio as CEO on June 1st, 2004.
Who is the current Ferrari owner?
Who currently owns Ferrari? FIAT Chrysler Automobiles (FCA) reorganized to create Ferrari N.V. as the holding company of the Ferrari Group, and then sold 10% of its shares and allocated the remaining 80% to FCA stockholders. Piero Ferrari held 10% of Ferrari and still does.