Fiat-Chrysler’s (NYSE:FCAU) Wants The Wheel At Ferrari Pre-IPO

Fiat-Chrysler’s (NYSE:FCAU) Wants The Wheel At Ferrari Pre-IPO

$FCAU, $PM

Ferrari, the Italian Supercar manufacturer that plans to IPO  on the New York Stock Exchange later this year, is considering appointing Chairman Sergio Marchionne, 63 anni, as its CEO after Amedeo Felisa, 68 anni, retires from the post in the coming months.

Mr. Marchionne is also CEO of Ferrari owner Fiat Chrysler Automobiles NV wants to take full responsibility at Ferrari before it’s spun, adding to his list of positions,

CEO Felisa, 68, may keep an advisory post at Ferrari. Discussions about Mr. Felisa’s replacement are under way, and no final decision has been made yet.

Ferrari declined to comment.

The Fiat Chrysler boss has the ego, the confidence and possibly even the ability to add the Ferrari CEO position, The norms mean nothing to him.

Fiat Chrysler plans to sell a 10% stake in Ferrari in a IPO targeted for October as part of a plan to raise cash for the Italian-American parent company.

Fiat Chrysler will distribute its remaining 80% stake in Maranello-based Ferrari to investors at the beginning of next year, making the supercar maker independent. Founding-family member Piero Ferrari plans to keep the remaining 10%.

Mr. Marchionne has said the division is worth in excess of $11.3-B, more than half of Fiat Chrysler’s market value. I believe it is worth about $7-B

The executive plan is to develop the Supercar maker into a full-fledged luxury brand.

The architect of the Fiat Chrysler merger took the Ferrari Chairmanship last year in place of Luca Cordero di Montezemolo, who stepped down after more than 20 yrs at the post following disputes on strategy.

A few weeks after that, Mr. Marchionne outlined the plan to separate Ferrari from Fiat Chrysler and list the unit’s stock in New York. Then he reshuffled management of Ferrari’s Formula One car-racing team and engaged 4X world champion Sebastian Vettel to replace Fernando Alonso as Team’s top driver.

The number of executive or board positions Mr. Marchionne holds is unusual.

He is Chairman of CNH Industrial NV, the truck and tractor maker spun off from Fiat in Y 2011. He is Vice Chairman of Exor SpA, the holding company of the Agnelli family that controls Fiat Chrysle, Chairman of SGS SA, the Swiss product-testing company that he led before the Agnellis picked him to run Fiat, and an independent director at cigarette maker Philip Morris International Inc (NYSE:PM)

The number of seats he holds may put Mr. Marchionne “well over generally accepted global best-practice limits,” an analyst at Glass, Lewis & Co., said in a blog post on the proxy advisory firm’s website.

Symbol Last Trade Date Change Open High Low Volume
NYSE:FCAU 14.4 27 August 2015 -0.05 14.36 14.61 14.04 5,570,877
HeffX-LTN Analysis for FCAU: Overall Short Intermediate Long
Neutral (-0.11) Neutral (0.01) Bearish (-0.27) Neutral (-0.07)

Stay tuned…

HeffX-LTN

Paul Ebeling

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