Ferrari may be acquired... Fiat financial woes worsen

[sportVeloce]

My thoughts for the JW community. Here is a compolation of information what I consider interesting information relating to Ferrari - the company.

Fiat owns (did own) 90% (still a majority shareholding to my knowledge) of Ferrari, which in company terms means that Fiat control Ferrari down to the way the toilets are cleaned.

Fiat Auto is also 20% owned by GM (my condolences to Jabba). There is also a clause in the contract between GM and Fiat in which GM will purchase the remaining 80% if the Agnelli family (they own/control Fiat) decide they want/need to sell. It is likely that Fiat will exercise this option in 2004 (the exercise date on the contract) because the Fiat Auto group is what is destroying Fiat.

A sign of things to come for Ferrari? (summary of related news in 2003):

- Mediobanca (Italys largest Investment Bank) plans to buy 34% of Ferrari
- Fiat sales hit historic low
- Fiat to sell Avio aviation unit
- Fiat cut 12,300 jobs and close 123 factories
- Losses widen at troubled Fiat
- Fiat posts record loss (Fiat post a 4.26 billion-euro net loss for 2002)
- Fiat chief dies before key meeting (Giovanni Agnelli - Italys most powerful businessman)
- Fiat, GM executives meet in NY
- Fiat named Fiat's fourth chief executive in nine months
- Fiat, GM 'to meet on rescue plan'

- 2001-2002 Fiat cut 18,000 jobs

BREAKING NEWS (10 Sept 2003):
"Volkswagen's Audi unit signed an extensive technology sharing greement with Ferrari's Maserati marque" - http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1059479709839. Interesting how the VW executive joked he wanted to own Ferrari. Imagine that, VW owning Lamborghini and Ferrari. - I wonder what we would get:
a) A Flamborghini
OR
b) A Lamarrari

Fiat also owns Lancia (I hope it finds a good home :cry: ), Alfa Romeo and Maserati.

Will Ferrari be sold? Whats your thoughts?

[alondahan]

Actually Fiat Auto owns 0% of Ferrari. Fiat Auto owns Lancia, Alfa, and maybe some more I can't remember.

Ferrari is (THANK GOD) owned by a seperate division of the Fiat Group, which gm has nothing to do with.
Also, as Maserati is owned by Ferrari, it's also protected from the filthy hands of gm :snipersmile: :bad-words: .

I hope that Fiat will get in a much better shape very very soon, so this miserable situation will not escalate, and Ferrari and Maserati will stay out of gm's reach. :2gunfire: :changes:

[alondahan]

Oh and a part of Ferrari shares has been sold to Mediobanca (the deal was done behind Luca Di Montezemolo's back :x ). I don't remember how much was sold, something like 20%. atleast those shares are in Italian hands and not the americans.

BTW after Montezemolo found out about the sale he threatened to quite, if Fiat will try such a move again.

[sportVeloce]

"Actually Fiat Auto owns 0% of Ferrari. Fiat Auto owns Lancia, Alfa, and maybe some more I can't remember. "

- Yes you are right. But Fiat owns both Fiat Autos and Ferrari.

When you get down to the small details Fiat is the body corporate to Fiat Commercials (commercial vehicles), Fiat Autos and Ferrari (and many more).

- I dont think Montezemolo would have had much of a say when up against the might of the Agnelli family Italys most powerful businessmen. Ferrari is like a pin-head compared to a boulder when looking at the Fiat group as a whole. Justification follows:

Fiat had gross revenues of around 55billion Euros.

Revenues in groups of Fiat body corporate:
Fiat Autos -> 22billion Euros
Agriculture equipment -> 10billion Euros
Commercial vehicles -> 9billion Euros
Ferrari -> 1billion Euros

In-fact Ferrari has the lowest revenue for any Fiat group except the Publishing and Communications wing. Out of 11 Fiat groups Ferrari is 10th lowest revenue spinner on the list.

[TT]

Sadly these days, there are very few brands able to survive w/o a big owner behind, to finance new projects...

The important thing is to keep this as pure as possible (like Lamborghini is trying, but Audi's influence is noticeable...)...

I wonder if Ferrari would be able to survive, alone with Maserati, w/o a big dad watching on them... utopic?

[alondahan]

"Actually Fiat Auto owns 0% of Ferrari. Fiat Auto owns Lancia, Alfa, and maybe some more I can't remember. "

- Yes you are right. But Fiat owns both Fiat Autos and Ferrari.

yes, but only Fiat Auto shares were sold to gm, so Ferrai is curently owned by:
10% - Ferrari Family
about 20% - Mediobanca
the rest % - a Fiat division whose shares are all under Fiat Group control.

So thank god gm doesn't have any sort of control over Ferrari and Maserati. :P

When Enzo Ferrari sold 90% of Ferrari to Fiat, he made it clear that Ferrari will not be part of the Fiat Auto division. in fact the contract guarantees Ferrari will enjoy a very wide autonomy. :P

[TT]

When Enzo Ferrari sold 90% of Ferrari to Fiat, he made it clear that Ferrari will not be part of the Fiat Auto division. in fact the contract guarantees Ferrari will enjoy a very wide autonomy. :P

Yes, but what about the money... Ferrari has autonomy, but also financements...

[Johns]

ferrari's are overpriced 8)

[maalox]

I doubt that Ferrari could survive alone in their current state. Their volumes are low but their cars require extensive engineering. Their counterpart, Porsche, is one of the world's smallest independent car makers but still has much higher volume than Ferrari. And what have they been doing for the last 5+ years?--increasing volume with models such as the Boxster and the Cayenne (bleh) to avoid takeovers.

An aside: the supercar market is beginning to become saturated like it was in the late 80s. With everyone from Ford to Volkswagen getting in on the market, you have to wonder how many potential buyers there could possibly be for this sort of machinery. I think there will eventually be a similarly disastrous fallout leaving only a few key players once again. It remains to be seen who those will be.

[Chingachgook]

I hope Ferrari won'y be bought by Audi or VW....so we'll have the 360 JTD...bleah... I don't understand why something happens (like Cayenne, the future 911 GTD)

[stracing]

ferrari's are overpriced 8)

thats how ferrari torture the poor ppl

[ferrari550]

whatever happens in the long run, even if someone does buy ferrari. i hope they do not fuck it up!!!! when ford bought aston martin they used cheap ass ford parts in a $250 000 supercar!!!!!!!

[possessed_beaver]

whatever happens in the long run, even if someone does buy ferrari. i hope they do not fuck it up!!!! when ford bought aston martin they used cheap ass ford parts in a $250 000 supercar!!!!!!!

no matter what u put in a aston martian, it's going to be shit :twisted:
HAHAHAA

[stracing]

or like a mondeo chassis on the jag x-type