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Marchionne talks up Ferrari’s value

As Fiat Chrysler Automobiles (FCA) gears up for its initial public offering of Ferrari later this year, company CEO, Sergio Marchionne, has been talking up the super car maker's potential value and is quoted as saying it could be "at least" 10 billion euros.

Speaking during the launch this week of the new Fiat 500, Marchionne said: "There are clear expectations from ourselves as Ferrari brand is unique. There is also a scarcity value as we are just selling a 10 per cent stake."

Should Marchionne be correct in his valuation, FCA should expect to make around 1 billion euro from the sale of 10 per cent of Ferrari. This will form a key part of the group's massive restructuring plan recently outlined by Marchionne. Of the remaining stake, 10 per cent will remain with Piero Ferrari, son of company founder Enzo Ferrari, while the remaining 80 per cent will be distributed amongst FCA investors.

Anything else?

Ahead of Marchionne's plans to list Ferrari on the New York Stock Exchange, there are moves in place to register the company's head office in The Netherlands while its fiscal residence will be moved to the UK. This would be solely for financial and accounting purposes and is something that may be key to the success of the planned floatation. It might not sit well with the legions of patriotic tifosi but it is believed to have the blessing of the Agnelli family.

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Published on July 4, 2015