The future of the Ferrari and Alfa Romeo luxury brands, which are part of Fiat’s automotive unit, has been the subject of speculation in the past months. At the Paris Motor Show in September, Volkswagen AG supervisory board Chairman Ferdinand Piech told reporters that said he’s monitoring Alfa Romeo in the event Fiat wants to sell. Piech is also interested in acquiring Ferrari, Germany’s Manager Magazin reported last week.
Marchionne and Volkswagen AG CEO Martin Winterkorn said last week in Turin that a sale of Fiat’s Alfa Romeo and Ferrari brands to the German carmaker is only a “dream.”
At the Nov. 12 analyst meeting, Marchionne reiterated that Alfa Romeo is only for sale at “ a very high price,” Morgan Stanley’s Pearson said.
Fiat owns 90 percent of Maranello, Italy-based Ferrari after paying Mubadala Development Co. 122 million euros for its 5 percent stake in the third quarter.
full article here
Fiat has the cash to raise Chrysler stake to 51%, Marchionne says
TURIN, Italy -- Fiat S.p.A. has enough cash to boost its stake in Chrysler Group to 51 percent by the end of this year, CEO Sergio Marchionne said.
Today’s statements by Marchionne, who leads both automakers, follow comments earlier this month indicating Fiat is on track to lift its share to 35 percent this year from the current 25 percent.
On a call with analysts today, Marchionne said Fiat has “an abundant cash cushion” that would allow Fiat to fund this year’s investments as well as exercise an option to purchase an additional 16 percent of the U.S. automaker.
Fiat today reported it had 15.9 billion euros ($21.8 billion) in cash at the end of last year, 28 percent more than a year earlier.
Analysts estimate Fiat may pay between $900 million to $4.4 billion for the 16 percent.
. . . . .
Fiat said today that fourth-quarter earnings before interest, taxes and one-time items -- which Fiat calls trading profit -- rose 26 percent to 615 million euros.
Raptor22 wrote:thats the usual reassurance before the kick out the door.
JohnsonsEvilTwin wrote:Just look at the name of the current Ferrari F1 car.
Its launching Dimontezemolo into politics. Thats the draw Ferrari holds in Italy.
Its a symbol of Italian pride, technnology and some say even modern identity.
If anyone thinks Ferrari will be another Skoda, Bugatti or Lamborghini they are very sorely mistaken.
VW will never be able to match middle eastern investment either, this is the biggest flaw in any argument of "VW to buy Ferrari".
Investment funds in the middle east will pay 20 to 30% more for any equivalent stake in Ferrari. The deals being struck in the automotive industry at present are mostly coming from middle eastern investments. Daimler, Mclaren even VW are subject to arab oil money.
There are all sorts of fancy buy back clauses etc for the oil men to get returns on their investments.
If Fiat really needs the cash this will be their first and only necessary port of call. And Ferrari will remain entirely under Fiat control(which currenty means total autonomy) which is precisely the way Italians will want it.
Kinda hope this buries the thread now
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