The sports carmaker’s listing, which comes after its October debut on the New York Stock Exchange, completes its spinoff from former parent Fiat Chrysler Automobiles (FCAU), the Associated Press reports.
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Fiat Chrysler on Sunday distributed to shareholders its remaining 80 percent stake in Ferrari NV, the producer of the $324,000 Berlinetta coupe.
Fiat Chrysler has officially spun off its position in Ferrari, and now shares of the luxury automaker have tumbled by more than 30%, falling as low $8.94 per share on the New York Stock Exchange after trading at more than $14 per share on December 31.
Ferrari stock is down 1.15% to $47.45 during pre-market trading.
Ferrari is the only race-car maker that has continuously participated in Formula 1 racing since the beginning. In the third quarter a year ago, Ferrari accounted for 2.6% of Fiat Chrysler’s total revenue, but 11% of adjusted operating profit. Slowing demand in China and a drop in Brazil’s auto market prompted cutbacks in the plan, with the Alfa Romeo and Maserati divisions putting off new models as the spending emphasis shifts to expanding the Jeep sport utility vehicle brand.
The split plan of Ferrari from Fiat was first announced by FCA CEO and Ferrari chairman, Sergio Marchionne, in October last year to raise capital in order to finance Fiat’s five-year strategic plan. Marchionne wants to profit from the brand by turning it into a luxury goods company, the AP noted.
Mr. Marchionne insisted his search for a partner isn’t a sign of weakness and said Fiat Chrysler will now concentrate its efforts on meeting the 2018 targets, something he says will create shareholder value. The heirs of Fiat’s founder, the Agnelli-Elkann clan, bought 23.5 percent of Ferrari’s shares and secured 33.4 percent of voting rights.
“Globalization is our best chance”, said Italian Prime Minister Matteo Renzi at the Milan stock exchange debut. Still, losing Ferrari’s earnings will put the focus on Marchionne’s ambitious, 48 billion-euro ($52.1 billion) revamp of Fiat Chrysler.
Until now, Ferrari has sold a range of products including T-shirts and keychains with the company’s prancing horse logo though Mr. Marchionne indicated a change could be in the works.
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Furthermore, he highlighted the brand’s Italian heritage and thanked John Elkann and Piero Ferrari, heirs of Giovanni Agnelli and Enzo Ferrari, who in 1969 forged a great alliance based on mutual respect.
