Ferrari to separate from Fiat/Chrysler

Fiat Chrysler Automobiles (FCA) chairman Sergio Marchionne attends a news conference with former Ferrari chairman Luca Cordero di Montezemolo (not seen) in the Ferrari headquarters in Maranello on Sept. 10, 2014.

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Fiat Chrysler has announced plans to spin off Ferrari into a separate company.

A 10 percent shareholding will be sold via an IPO, with the rest distributed to existing FCA shareholders.

The news was announced by FCA CEO and new Ferrari boss Sergio Marchionne.

He said: “Following our acquisition of the minority interest in Chrysler earlier this year, the transformation of Fiat and Chrysler into FCA was completed earlier this month with our debut on the New York Stock Exchange.

“As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari.”

FCA chairman John Elkann added: “Coupled with the recent listing of FCA shares on the NYSE, 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.”