FCA has new plans for Ferrari spin-off image

The parent company of the luxury Italian sports car manufacturer – Fiat Chrysler Automobiles – has announced that one of the strategies being considered for the Ferrari spin off is a new loyalty program.

The news comes courtesy of the carmaker’s chairman, John Elkann, who envisions the loyalty scheme as a bonus that would grant higher voting power for the Ferrari shareholders. That would be the same strategy unveiled for the merged FCA – introduced when Fiat SpA finally united with its wholly owned US subsidiary Chrysler Group LLC this year. There’s a catch though – the program is seen by many not as much as designed to reward loyal long-term investors, as to being deployed to allow for greater control from main shareholder Exor – the holding company of the Agnelli family that created Fiat. “There are many options today and this is one of them,” said Elkann during an event in Milan.

Last month, FCA’s chief executive officer Sergio Marchionne announced that the automaker is preparing to spin off its prized luxury possession Ferrari – with the program due for completion sometimes in the middle of 2015. When turning Ferrari into an independent company, FCA would have 10% of the carmaker’s shares offered through an initial public offering, while the rest would eb equally distributed among the existing FCA investors.

Via Reuters