Fiat-Chrysler’s (NYSE:FCAU) Ferrari Spinoff Set For October

Fiat-Chrysler’s (NYSE:FCAU) Ferrari Spinoff Set For October

At a conference in Venice, Italy, Fiat Chrysler Automobiles N.V. (NYSE:FCAU) CEO Sergio Marchionne said that the planned IPO of the company’s Ferrari automobile group into a separately traded public company will not happen until at least 13 October, the 1-yr anniversary of Fiat Chrysler’s own IPO in October 2014.

When the Ferrari IPO was announced last Fall, Mr. 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. So, look for the event later this year.

The high-end business has been very good for Fiat Chrysler.

Sales of Ferrari and Maserati cars totaled more than 40,000 in Y 2014. Mr. Marchionne wants to expand the luxury range

Marchionne plans to increase production gradually to 10,000 units. Ferrari was the world’s most powerful brand for the 2nd-yr running.

The Fiat boss saw the market for premium cars widening with Maserati and others now producing cars that are expensive, but not quite reaching the marks that typify Ferrari Supercars.

For example, Ferrari’s 2014 California is a $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 F12 Berlinetta coupe has an MSRP of nearly $320,000 plus tax, license and insurance, and there are more expensive limited edition cars in the lineup.

The Maserati cars sell in the range of $150,000.00 at the entry level. They are not Supercars, but are in the luxury category.

I have learned that a new version of the Ferrari Dino is in the works, watch for the story.

Have a terrific weekend.

HeffX-LTN

Paul Ebeling

The post Fiat-Chrysler’s (NYSE:FCAU) Ferrari Spinoff Set For October appeared first on Live Trading News.