Italian luxury supercar manufacturer Ferrari had sold parts of its shares to Fiat Chrysler. The move was marked as the end of Ferrari's age old legacy and heritage. It was always the plan to separate all of the brands under Fiat Chrysler to maximise their profit.
Fiat Chrysler plans to sell its shares both in European and United States of America listings. Their objective is to clear the share transfers by next year. They will be selling off 10% of their shares in Ferrari.
Currently there are no plans by Fiat Chrysler to sell their stakes in other luxury car brands. They currently hold stakes in Alfa Romeo and Maserati. Their luxury brand value has increased after they received a boost from Fiat Chrysler.
Fiat and Ferrari have been in partnership since 1969, however, the Ferrari family had been running the Formula One team up until 1988. Fiat was financial and engineering backup, while Ferrari was their niche market player and increased the overall value of both brands.
Since the Fiat and Chrysler merger has taken place the Italian manufacturer's plans have changed. They are looking at larger global expansions for which they require huge funds. The selling of stakes in Ferrari is expected to give them adequate amount of capital.
Ferrari has a long and rich heritage, many experts believe this move could taint their history. The Italian supercar manufacturer has earlier this year reported profits, however, their racing department has suffered and are not even in title contention. The manufacturer had earlier reported that they would concentrate more on their limited edition models to maximise profits.