Cars and Drivers
Ferrari IPO Stalled Before It Reaches the Starting Line
Published:
Last Updated:
When the Ferrari IPO was announced about two weeks after last year’s IPO, Marchionne said the plan was to sell about 10% of Ferrari’s shares to the public and to distribute 80% to FCAU shareholders. Fiat Chrysler currently owns 90% of Ferrari. The new Ferrari would be spun off completely from the parent company in early 2016.
The high-end business has been very good for Fiat Chrysler. Sales of Ferrari and Maserati vehicles totaled more than 40,000 last year. Marchionne wants to expand the luxury range downward, and that led to the retirement last October of Ferrari’s long-time chief, Luca Cordero di Montezemolo.
Marchionne plans to increase production gradually to 10,000 units. Montezemolo wanted to maintain production at around 7,000 to underscore Ferrari’s exclusivity. He had a point: according to British brand research firm Brand Finance, Ferrari had been the world’s most powerful brand for the second-year running.
The Fiat chief saw the market for premium cars widening with Maserati and others now producing cars that are expensive, but not quite reaching the nose-bleed levels that typify Ferrari. For example, Ferrari’s 2014 California rings in at just under $200,000 for the base model, while the 458 Italia carries a base price of more than $250,000. The Ferrari FF lists for $295,000 and the F12berlinetta coupe has an MSRP of nearly $320,000. That is before customization — and that is where the real money gets spent. Customization gets the credit for the revenue jump at Ferrari under Montezemolo.
Really, what is wrong with a $150,000 Maserati Gran Turismo?
ALSO READ: 10 Cars Americans Do Not Want to Buy
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
