Fiat Chrysler Automobiles has announced a range of measures that could potentially bring in cash worth $4 billion, including a 10% Ferrari share listing in an IPO.
The recently merged Fiat Chrysler Automobiles has set up back in May a hugely ambitious growth plan that should bring a fivefold profit increase and a 60% jump in sales by 2018. In order to achieve the ambitious growth target, the company plans to invest during the period no less than 48 billion euros ($61 billion) – finishing as a worthy rival to the Top 3 automakers – Toyota, Volkswagen and General Motors.
Now, FCA’s chief executive Sergio Marchionne says it’s time for “a big clean-up day,” referring to a range of measures that would eventually inject a total of 4 billion euros to give “all the comfort to go and execute the plan up to 2018, it is designed to deal with the worst-case scenario.”
The capital-enhancing measures include a spin off for its luxury sports car maker Ferrari and the share listing of the producer on the New York Stock Exchange, where FCA itself recently began trading. Fiat Chrysler also wants to sell 100 million of its shares – including treasury shares and new stock – by the year’s end to repay some Chrysler bonds before they mature. The strategy finally includes the sale of a $2.5 billion bond that would later convert into FCA stock.