Quote:
Originally Posted by afterburn 549
With Fiat involved, what could go wrong? LOL
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Fiat has been a majority shareholder since 1969, when it acquired 50% of Ferrari ownership. In 1988, they expanded the ownership stake to 90%. The remaining 10% is retained by family member Piero Ferrari.
I would say that Ferrari has done pretty well under Fiat, since Ferrari is rated as the
world's most powerful brand name by
Brand Finance.
But now that Fiat wants to make the company public.... well, IMO, that is the death knell for Ferrari as we know it.
Pre-IPO Ferrari cars will continue to gain collector value.
Post-IPO Ferrari cars will be designed by committee, built with Detroit methodology*, and expected to pay dividends to stockholders. You will see the creation of the "family Ferrari", the "Ferrari SUV", and the "entry level economy Ferrari". The brand will be mass market, it will be diluted, and no longer be exclusive.
* edit: scratch that bit about "Detroit methodology". The shareholders will want the product to be profitable, not some crapbox throw-away POS. So they will probably use the Toyota methodology.