Ferrari to be purchased by GM?
"Fiat Plans To Float Ferrari
Company loss sparks floatation
Fiat group has announced its intention to float the Ferrari Maserati Sport
and Racing Cars arm in the wake of heavy first quarter losses.
Fiat registered a loss of 529 million Euros, considerably worse than
anticipated, compared to a profit of 193 million Euros for the same period
in 2001. Much of this loss was put down to poor road car sales, some 11.2
percent down on last year.
Paolo Fresco, executive chairman of Fiat, announced the plan to list
Ferrari at its AGM in Turin. "We expect these two transactions to
generate proceeds of at least 1 billion Euros," he said, "And in the
case of Ferrari, a large capital gain."
Although Fiat will retain control of Ferrari after the listing, there are
suggestions among experts that the parent company may be forced to sell
Fiat Auto, its core car-making business, to General Motors. GM already
own 20 percent of Fiat Auto, and there is an agreement in place
allowing Fiat to sell its subsidiary entirely to the automotive behemoth.
Fiat owns 90 pecent of Ferrari Maserati Sport and Racing Cars, with the
remaining 10 percent remaining in the hands of the Ferrari family.
The float will have no immediate effect on the Ferrari Formula 1 team.
However, any future sell-off to GM may change the situation,
as the company would have to integrate the F1 project into its own
motorsport portfolio.