FCA shareholders back Ferrari spin-off

Fiat Chrysler shareholders on Thursday approved the spin-off of the group's sports and racing car unit Ferrari which is expected to take place in January.

FCA shareholders back Ferrari spin-off
FCA head Sergio Marchionne said the Ferrari spin-off was "the start of a new chapter". Bill Pugliano/Getty Images North America/AFP

The shareholders, meeting in Amsterdam, backed the separation with 98 percent voting in favour.

The Fiat Chrysler Automobiles group “will transfer all of the shares held by it in Ferrari N.V. to FE Interim B.V,” a newly-formed Dutch company which will issue shares to FCA's shareholders in January 2016, it said in a statement.

Ferrari, known for its high-price sports cars, is the biggest and most glamourous name in Formula One racing and the team's logo of a black stallion against a red background is instantly recognised by motorsport fans around the world.

FCA head Sergio Marchionne told shareholders on Thursday that the separation was “the start of a new chapter”.

It would “allow Ferrari to better realise its potential for future growth and follow its own strategies with greater financial and operational independence,” he said.

He said a separation of other brands from the group in the short term was “highly improbable”.

The group sold 10 percent of the legendary carmaker in an initial public offering in October which valued Ferrari at $10.6 billion (€10 billion).

Fiat Chrysler owned 90 percent of Ferrari before that flotation.

With a heavy debt level and a plan to invest $48 billion to expand its total worldwide sales to seven million vehicles per year, the spin-off is aimed at strengthening Fiat Chrysler's finances.

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Fiat promises no job cuts in return for state aid: report

Fiat Chrysler has agreed to the conditions laid down for a state-backed €6.3 billion euro loan, including a promise not to relocate or cut jobs, Italy's Sole 24 Ore daily said Sunday.

Fiat promises no job cuts in return for state aid: report
Robots manufactured by Comau are pictured on the assembly line of the Fiat 500 BEV Battery Electric Vehicle. Photo: AFP

The state auditor has approved the guarantee, but it still needs to be signed off on by the economy ministry, the paper said.

The request for state support on such a large loan has proved controversial, particularly with the company's corporate headquarters in Amsterdam.

FCA — which directly employs close to 55,000 people in Italy — has said the loan is essential to help the group's Italy operations and the whole industry to weather the crisis triggered by the coronavirus pandemic.

The company will commit to investing 5.2 billion euro in Italy on new and existing projects, and up to 1.2 billion euro on its 1,400 or so foreign suppliers, said Sole 24 Ore, Italy's financial newspaper.


FCA will also pledge not to cut any jobs before 2023.

The loan will be funded by Italy's largest commercial bank Intesa San Paolo and 80 percent guaranteed by export credit agency SACE, the daily said.

The government has said FCA would face sanctions if it failed to stick to the conditions laid down for loan. Sole 24 Ore said the fine for breaking the agreement could be in the region of 500 million euros.