Fiat Chairman John Elkmann Reiterates There’s No IPO Planned for Ferrari image

Today, June 27th, John Elkann, Fiat’s Chairman, reiterated that the automaker does not plan to list Ferrari, its luxury sportscar unit.

“There is absolutely nothing in our mind,” Elkann told reporters when asked about a possible Ferrari IPO.

At the end of last month John Elkann said that Ferrari does not have a possible IPO on its agenda, but he added that the automaker will limit this year its high-performance street vehicle sales in order to protect the company’s exclusivity fame. As more wealthy customers want to own a Ferrari the automaker fears that he brand might lose its fame as a symbol of rarefied luxury. This year it will reduce sales to less than 7,000 units, from 7,318 in 2012.

“The exclusivity of Ferrari is fundamental for the value of our products,” Montezemolo told journalists at the company headquarters near Modena, in northern Italy. “We don’t sell a normal product. We sell a dream.”

From January to March, Ferrari’s sales jumped 4% to 1,800 units, but the automaker expects sales this year to drop 2%. Revenues increased 8% to 551 million euro and net profit hit 80.5 million euro, a rise of 42% from 2012.

Source: Reuters