Ferrari worth $15B, but it's not for sale - Eagle-Tribune: News

Ferrari worth $15B, but it's not for sale

Print
Font Size:
Default font size
Larger font size

Posted: Sunday, May 11, 2014 12:05 am

Ferrari might be worth $15 billion, according to Fiat and Chrysler CEO Sergio Marchionne, but is still not for sale and never will be.

Marchionne, who presided Tuesday over a daylong conference in Auburn Hills, Mich., to reveal the five-year strategic plan for Fiat and Chrysler, said Wall Street analysts continue to drastically underestimate the value of Ferrari.

He said Ferrari’s value is easily double the $4.6 billion to $7.5 billion they have estimated. Nevertheless, he said, the amount is immaterial because the supercar brand is not for sale.

Analysts have long speculated Fiat either should or will sell the powerful brand. Marchionne said Ferrari is actually worth double their valuations, especially if the brand were to increase volume to 10,000 vehicles a year as it expands to new markets.

Marchionne told analysts to remember that every time they place a value on Fiat Chrysler Automobiles, especially when the company is looking to borrow money to fund growth of other brands.

Today, Fiat deliberately limits Ferrari production to 7,000 vehicles a year. A new model is introduced every year and each has a four-year lifespan. They have 8- and 12-cylinder engines.

The most recent, the limited-edition LaFerrari, has sold out its allotment of 499.

Ferrari controlled the Maserati luxury brand for seven years, ending in 2005. It is one of three luxury brands that are now part of Fiat Chrysler Automobiles. The other two are Maserati and Alfa Romeo.

Fiat Chrysler Automobiles is aiming to quadruple the global sales of its Maserati luxury brand by 2018, Harald Wester, CEO of the brand, said Tuesday in Auburn Hills.

The ambitious global expansion is based on the company’s plans to launch six new or redesigned cars or crossovers over the next five years.

“Against all odds, Maserati is taking on the boring giants, the giants of the expected, the predictable,” said Wester, who is also CEO of Alfa Romeo.

Wester said Maserati, founded in 1914, struggled in the 1960s and 1970s but was eventually reinvigorated by Fiat.

Fiat acquired Maserati in 1993, but the brand’s global sales have been modest. Maserati’s sales have grown from 8,600 in 2008 to 15,400 in 2013.

Wester said the company’s sales should grow to more than 75,000 by 2018.

Fiat Chrysler Automobiles plans to achieve that rapid growth by launching the Levante SUV this year, followed by the Alfieri Coupe, Granturismo and Grancabrio between 2016 and 2018.

“By 2018, we will be covering the luxury market in its entirety,” Wester said. “We will be building ultra-luxury automobiles with timeless style, we plan to keep our connection to our racing heritage intact, and we will further evolve our unique sculpture and Italian style.”

———

©2014 Detroit Free Press

Visit the Detroit Free Press at www.freep.com

Distributed by MCT Information Services

_____

Topics: c000407509

 


To view or purchase photos, visit photos.northofboston.com.