For EUR775.2 million in June 2002, Fiat sold 34% of Ferrari to a group of banks led by Mediobanca. Banca Popolare dell’Emilia Romagna (BPER Banca) (1.5%), Commerzbank (who acquired a 10% interest for EUR228 million), and Compagnie Monegasque de Banque (CMB Monaco) (1% each) made up the consortium. A 21.5% share remained with Mediobanca.
In July 2005, Mediobanca sold 5% of Ferrari to the Abu Dhabi government-owned investment firm Mubadala Development Company (now Mubadala Investment Company). In the agreement, Mubadala paid EUR114 million to acquire the 5% interest.
Fiat paid EUR892 million in October 2006 to repurchase the 29% interest that the consortium still held. At the time of the deal, BPER Banca owned 1.3%, Commerzbank owned 8.5%, Mediobanca held 11.7%, and ABN AMRO held 7.5%.
Fiat paid EUR122 million in November 2010 to repurchase Mubadala Development’s final 5% ownership. With this deal, Fiat’s ownership in the high-end Italian automaker increased to 90%.
In This Article...
Ferrari
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 (film). Enzo Ferrari is the name of the founder. Ferrari has other uses as well (disambiguation).
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. A restructure that created Ferrari N.V. in October 2015 marked the beginning of the division. as the new holding company of the Ferrari S.p.A. group, the subsequent sale by FCA of 10% of the shares in an IPO, and the simultaneous listing of the common shares on the New York Stock Exchange. (A company incorporated in the Netherlands). 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 finalized on the 3rd of January 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). (15). 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.
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., Fiat Chrysler increased 1.9 percent to 8.625 euros. with a market value of 10.9 billion euros in Milan. 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.
Ferrari withdraws from the sale to Ford
Before realizing the arrangement included the purchase of Scuderia Ferrari and would prevent him from continuing to be in charge of the company’s racing division, Enzo considered selling his marque to Ford in 1963.
When Ferrari backed out of the agreement, Henry Ford II was furious and set out to design a vehicle that would defeat Ferrari in the renowned 24 Hours of Le Mans sports car event. It resulted in the 1964 release of the Ford GT40 and Ford’s legendary 1-2-3 finish in France in 1966.
Due to the collapse of the Ford transaction, Fiat was able to acquire a 50% interest in Ferrari in 1969. In 1988, Fiat raised that to 90% while keeping 10% for Enzo Ferrari.
50% Purchased by Fiat (1969-1988)
Even more intriguingly, Ferrari immediately sold 50% of the business to Fiat after the unsuccessful negotiations with Ford. Some theories go so far as to claim that Enzo never truly intended to sell the business to Ford; instead, he merely used Ford as a prop to raise the price for the eventual sale to Fiat. Additionally, Fiat was more than willing to acquire the business in order to have access to its engines. Later, the Fiat Dino used a Ferrari engine.
In addition to receiving a significant payoff from the sale to Fiat, Enzo was also able to maintain control over his motorsports business.
Ferrari was able to utilise the components that Fiat was creating and developing as a result of its sale to Fiat. Using Fiat’s electronics, they were able to advance the performance of their automobiles (these were expensive to develop and manufacture). Fiat did not, however, provide the most dependable electronics on the market, which resulted in several electronic problems for Ferraris at this time.
An independent Ferrari in phase eight (2016 – CURRENT)
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 (NYSE).
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 (founders son). 22.91% of the shares are owned by Fiat Chrysler Automobiles, with 67.09% of those shares being publicly traded on the NYSE.
Before a spinoff, Ferrari will pay Fiat Chrysler $2.8B.
Fiat Chrysler Automobiles NV provided more information on its recently revealed plan to spin off Ferrari as a separate business in 2015, including an increase in funding for the new manufacturer.
According to a more than 500-page file with the U.S., FCA intends to extract 2.25 billion euros ($2.8 billion) from the Italian luxury brand before spinning off the manufacturer the following year. On Thursday, the Securities and Exchange Commission.
There was no indication of a specific timeframe for when the “distributions and transfers of cash” are anticipated to take place. The initial public offering of Ferrari is anticipated to take place in the second and third quarter of 2015, according to FCA CEO Sergio Marchionne, who is also Ferrari’s chairman, who stated this earlier this week.
Late this month, FCA disclosed plans to give FCA shareholders free ownership of the remaining 80% of Ferrari while selling 10% of it in an IPO. Piero Lardi Ferrari, the son of business founder Enzo Ferrari, owns the remaining 10% of Ferrari.
It is anticipated that Ferrari shares will be listed on a U.S. exchange and potentially one in Europe. That would be comparable to FCA’s shares, which have a secondary listing in Milan in addition to their primary listing on the New York Stock Exchange.
The Ferrari split was announced on October 29 as part of a strategy to inject 4 billion euros, or $5 billion, into FCA to support Marchionne’s large-scale $61 billion growth strategy.
Enzo Ferrari created Ferrari, a manufacturer of race and sports cars, in 1929. In 1969, Fiat SpA, the previous parent company of Chrysler Group, purchased 50% of Ferrari. It later increased its ownership to its present 90%.
At 2:30 p.m., FCA shares were trading at $12.30. upward 5.4 percent on Thursday. On October 13, the stock’s first day of NYSE trading, it opened at $9 a share.
In a separate development, Morgan Stanley declared FCA to be its “best pick in U.S. cars” on Thursday because to the Ferrari shares that FCA stockholders will receive.
Fiat Chrysler Automobiles is a hazardous investment, but according to Morgan Stanley analyst Adam Jonas, it is the most underappreciated automaker (imported) from Detroit and offers the best risk-adjusted return in comparison to GM and Ford.
Fiat allegedly purchased Ferrari.
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.
What was the price of a Ferrari in 1980?
Back in the early to mid 1980s, when this automobile was first produced, a brand-new Ferrari 308 GTS would have cost you roughly $45,000 at the time of purchase. Currently, the cost of one of these has essentially remained unchanged—kind of, sort of. A used Ferrari 308 GTS may now be purchased for between $45,000 and $70,000. Even though it may appear that the cost of these has increased by tens of thousands of dollars rather than decreased, when you account for nearly 40 years of inflation, someone purchasing a brand-new Ferrari 308 GTS in the 1980s would really have to pay just over $125,000 now. Given the pricing of a used 308 GTS now, you could actually get a high-end Ferrari right now for a stunning $50,000–$80,000 less than the vehicle’s initial asking price.
Chrysler sold Ferrari when?
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.
Chrysler sold Ferrari for what reason?
In order to raise money for the automaker’s ambitious five-year strategic strategy, Marchionne originally announced plans to separate Ferrari from Fiat Chrysler in October 2014. Fiat Chrysler raised $893 million in October by selling a 10% interest in Ferrari on the New York Stock Exchange.