Fiat may sell auto-parts division Magneti Marelli and a stake in super-car maker Ferrari before consolidating Chrysler Group LLC, Chief Executive Officer Sergio Marchionne told analysts.

Analysts who met CEO Sergio Marchionne last week said he was planning for one joint listed car unit ahead of 2014.

“We left Turin with the clear message that Fiat and Chrysler will become one company,” Morgan Stanley said in a research note as it added the stock to its “best ideas” list.

More cash on hand is the root of the idea, as a Ferrari IPO could raise as much as $1.6 billion for the company, assuming a valuation of $3.3 billion and sale of half of Fiat’s interest in the company, reports Automotive News.

“Chrysler consolidation may require crystallizing value in Ferrari and Magneti-Marelli,” UBS analyst Philippe Houchois, who has a “buy” rating on the stock, wrote in a note today.

VW’s supervisory board chairman Ferdinand Piech said in September the company was “monitoring” Fiat’s stance on Alfa Romeo in the event the Italian company wanted to sell.

This month Germany’s Manager Magazin reported Ferrari is the real target of Piech’s interest.

We know VW Group is cash rich as they have reserves in excess of $27 billion, which they would be more than happy to use in buying Ferrari and in the meantime helping Fiat with their finances.

So? We will see Ferrari under VW?

Ferdinand Piech – VW


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