Does Fiat Still Own Ferrari?

The bulk of Ferrari will be owned by the public by 2020, but if you find yourself wondering, “Doesn’t FIAT own Ferrari?” you’re not the only one.


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.

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.

Fiat sold Ferrari when?

Fiat increased its stake in Ferrari to 90% in 1988 (Enzo Ferrari held the remaining 10%), although it never had full control over the business. Until Fiat Chrysler Automobiles N.V. stated in 2014 that it would separate Ferrari S.p.A. from FCA, this agreement was in place.

As to why Ferrari sold to Fiat,

Ferrari delivered 729 million Euros (or roughly $928 million) in revenue during the second quarter of this year, and the company earned 105 million Euros (or about $133 million) before interest and taxes, according to Sullivan. Not bad for sales in 1900.

“Without a doubt, Ferrari is the jewel in the Agnelli empire’s [the founding family of Fiat] crown. Ferrari is more than just a car maker. It has a brand, too. You can buy things like clothing and baggage. It represents the apex of F1. With the most valuable component of FCA being spun off, its valuation is now up for debate “Sally informed us.

“However, this is what makes the most sense if you need to raise money to pay for the overhaul of an Alfa Romeo and you’re dead serious about it. The value of Tesla shares is not to be taken lightly, and Fiat Chrysler would undoubtedly want to share in that success.”

Sergio Marchionne, CEO of FCA, stated in today’s news release announcing the sale that taking a different course for Ferrari was required “to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders.” According to Sullivan, selling off Ferrari was possibly FCA’s only option given Marchionne’s claim that he didn’t need to borrow any money for this business plan.

Which sources did Montezemolo leave Ferrari in a huff this month? Which sources mentioned the purported pressure to increase production as the cause? Sullivan responds, “I assume that was all a wonderful story.” I’d wager that he was informed that the company will be spun off and that he didn’t want to be a part of it.

It does make me wonder who will be in charge of the business in a year, he said. “It won’t be simple or affordable for Ferrari to increase capacity. Another shift will be shareholders yelling at management.” The intention of Fiat Chrysler is to distribute the remaining Ferrari shares to current FCA shareholders after offering 10% of Ferrari shares on the American and/or European markets.

The company Ferrari has undergone significant transformations before. In spite of his insistence on limiting output to 7,000 vehicles annually, Montezemolo, who took over as president of Ferrari in 1991 during the company’s darkest hours following the death of founder Enzo Ferrari in 1988, assisted in turning the road car business viable. He oversaw the company as it expanded from a modest, isolated factory in Maranello to a global luxury brand that includes, among other things, Ferrari’s amusement complex in Abu Dhabi, dubbed “the world’s largest indoor theme park.”

You’ll soon be able to add a Ferrari-branded stock certificate to your assortment of hats, shirts, jackets, gloves, bags, keychains, laptops, and other Ferrari-branded items.

Why were Ferrari and Fiat split apart?

The goal of the initial public offering is to maximize the value of the luxury vehicle company’s distinctive brand.

In an effort to capitalize on the value of the luxury brand and set it apart from its mass-market owner, parent company Fiat Chrysler plans to spin off Ferrari into a distinct company.

According to Fiat Chrysler, the decision to spin off Ferrari was made as part of a strategy to raise money for the new, combined carmakers’ expansion plans. According to the company’s five-year plan, net income should have multiplied five times by 2018.

Following the conclusion of the Chrysler and Fiat merger with a listing on the New York stock exchange earlier this month, CEO Sergio Marchionne said in a statement that it was “appropriate that we pursue distinct paths for [Fiat Chrysler Automobiles] and Ferrari.”

Fiat Chrysler will transfer the remaining 90% of Ferrari’s shares to its own owners after selling 10% of them in a public offering. The transition will be finished in 2015, according to the board, and shares will likely be listed twice, once in the US and once in Europe. Industry insiders have long theorized about a Ferrari spin-off as Marchionne looks to get the most out of the group’s numerous brands. The parent firm will still own the other luxury brands owned by Fiat Chrysler, such as Alfa Romeo and Maserati.

Less than two months have passed since the embarrassing management change at Ferrari, which saw veteran chairman Luca di Montezemolo leave following a public argument over strategy with Marchionne, who has since taken over as chairman. Ferrari’s protracted absence from the Formula One car racing winner’s circle has irked Marchionne, who has vowed to bring the team back to the top. It last achieved driver’s championship success in 2007.

Is the Ferrari family still around?

— — One rich member of the famous car family assisted in ringing the bell today during Ferrari’s launch at the New York Stock Exchange.

Enzo Ferrari, a race car driver who would go on to become a renowned Italian automaker, only had one child, Piero Ferrari, who is now 70 years old. Given that Ferrari’s IPO price was around $10 billion, Piero’s 10% ownership in the company makes him worth about $1 billion. The company’s shares surged in today’s market debut, peaking at $56 per share in the middle of the day after being priced at $52 per share.

In late 1945, Enzo Ferrari Sr. started developing the first Ferrari automobile. The family’s achievements were followed by drama, tragedy, and war. Both Enzo’s father and brother Alfredo passed away in 1916. After his father passed away, Enzo Ferrari was compelled to discontinue his studies and find employment as a machinery instructor. According to the Ferrari website, he was wounded the next year while serving in World War I and was given an honorable discharge.

Who is the Ferrari family?

The Agnelli family, proprietors of the iconic Italian sports cars Ferrari and Juventus, have acquired a 24 percent share in the French high-fashion company Christian Louboutin, known for its red-soled shoes.

The Agnelli family’s Exor holding business is making the 541 million euro ($642 million) investment, which will give them two out of the board’s seven members.

The statement pointed to China and added, “Exor’s drive to growing great companies makes it an appropriate partner for Christian Louboutin at a time when this established brand is set to grasp major new potential.”

More than 150 locations are operated by Louboutin across 30 nations, and the company plans to expand its online presence.

John Elkann, the CEO of Exor, claimed in the statement that he was “quite eager to collaborate in order to hasten the growth of this innovative company. We have a similar family-oriented culture and set of values, which forms the cornerstone of our successful collaboration.”

In 1991, Christian Louboutin founded his company in Paris. His classy women’s shoes soon gained a following, and then he introduced lines for men.

The Economist Group, Shang Xia, PartnerRe, Ferrari, Stellantis, CNH Industrial, GEDI Gruppo Editoriale, and Exor are some of the oldest and biggest holding businesses in Europe, with assets under management estimated to be worth $29 billion.