Ferrari’s profit beaten by Maserati “brother” image

The two luxury producers share an odd common financial history – they both belong to Fiat (now Fiat Chrysler Automobiles), but essentially in the management scheme Maserati is subordinated to Ferrari.

Now, the little brother has exceeded all expectations, as FCA fights to promote Maserati as a primary profit driver and lift its sales to record figures. They seem to be on the right path, as the third-quarter profit turned in exceeded the one made by Ferrari for the first time since the Modena-based brand belongs to the Fiat Group (25 years). But there’s a catch – the main reason for the switch is that Ferrari parted ways with long-time chairman Luca Cordero di Montezemolo. And the latter was royally compensated for the exit.

According to the parent of both companies, recently merged Fiat Chrysler Automobiles, Maserati’s July-to-September operating profit jumped to 90 million euros from 43 million euros in the year-ago period. Meanwhile, Ferrari was just a whisker away – at 89 million euros, rising from 88 million euros during the same period in 2013. In reality, Ferrari would have come on top easily, but the company had to set aside no less than 15 million euros for Montezemolo’s severance package.

Last month the company said the outgoing chairman would be given 13.25 million euros by January 31, 2015 – and Montezemolo agreed to a non-competing clause that is valid through March 2017. The executive would be further given another 13.71 million euros in installments over 20 years.

Via Automotive News Europe