In a move that has shocked many, Fiat Chrysler has announced that it will be cutting ties with Ferrari. The move is surprising considering that Fiat has owned Ferrari since 1969, ending an era. The split was announced via a press release, with Fiat Chrysler management saying that going down a separate pathway from Ferrari is the appropriate strategy to ensure the company’s long-term success.
Of course, the news comes after Montezemolo left Ferrari not too long ago, saying that the Italian brand was becoming Americanized thanks to Fiat joining forces with Chrysler. Montezemolo left the post he had occupied since 1991, citing a disagreement with Fiat Chrysler CEO Sergio Marchionne over the future of the storied brand.
Many are wondering where the spinning off of Ferrari came from. The Fiat Chrysler press release doesn’t really divulge what motivated the move. Industry analysts are asserting that the whole thing has to do with money. Fiat Chrysler needs plenty of cash to rework Alfa Romeo and accomplish its other objectives from the 2014-2018 Business Plan. The truth is that Ferrari is worth quite a bit, thanks to a carefully-guarded brand that magically spikes the value of everything from phone cases to Oakley sunglasses and leather jackets.
What will the future of Ferrari look like at this point? With Montezemolo gone, there is considerable uncertainty about who will be at the helm during these tumultuous times. Whoever that will be, there will be plenty of work as the company strikes it out on its own. Of course, Ferrari has been able to control its own destiny, with Fiat leaving the brand toe manage itself
There is the definitely possibility that Ferrari will become an acquisition target. Ford used to lust after Ferrari, but considering the Blue Oval’s poor management of other European brands that’s probably not a good thing. The Volkswagen Group is seemingly always in the mood to collect more brands, although it already has an Italian supercar maker.