Luxury sportscar brand Ferrari is likely to split from its 45 year partnership with Fiat. Recently, Fiat Chrysler Automobiles has announced that it may offer about 10% of outstanding shares to the public whereas the rest may be allocated to the current shareholders. Speaking more on the occasion, John Elkann, Chairman of Fiat Chrysler Automobiles, said, “The separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business.”
It was in this month that Fiat has formally completed its merger with Chrysler to form the Fiat Chrysler Automobiles (FCA). This new official merger has brought the brand in seventh position as the largest automaker in the world. Commenting on the merger, Rich Hilgert, Senior Equity Analyst said, “For FCA, which is a heavily debt-laden company, [the spinoff] relieves some of that burden. The company is in a position right now where it needs to heavily invest in its own products.”
Looking back on old times, the All-Wheel-Drive FF and 458 Italia have been hotsellers from the Ferrari stable. Now post split, it is yet to be seen where the brand Ferrari leads to or who could be the new support for one of the world's most popular sports car brand.