FIAT CHRYSLER AUTOMOBILES: FCA or better Ferrari Group?
The new ItalianAmerican car maker FIAT-CHRYSLER plans to adopt a new name (Ferrari Group) and pursue a second stock listing (New York or Hong Kong).
The Story
There are several types of marriages and partnerships. In automotive world it’s common to hear about merges, acquisitions and divorces among car makers that look to survive. There are strong ties such as VW and Porsche, BMW and Rolls-Royce, and so on. There are other with more difficulties, like GM and Opel. But perhaps there’s only one with the most weird situation: Fiat and Ferrari. Few people know that the fantastic super car manufacturer makes part of Fiat, and there are many reasons that explain this. First of all, Fiat’s automotive division is divided into two mainly parts: Fiat Group Automobiles, which includes Fiat brand, Fiat Professional, Lancia, Alfa Romeo, Abarth, Jeep, and Mopar. And Luxury and Performance brands that include Ferrari and Maserati. This will change now, Fiat owns the remaining part of Chrysler. Fiat also may switch from the Milan exchange to NY or Hong Kong now the purchase operation is completed.
The division between Fiat and Ferrari includes different legal societies, events, management, marketing, and finance (their results make part of the same report but their operations and details are separated). That’s how Fiat headquarters in Turin are not involved in Ferrari’s day-to-day activities. There are a lot of reasons for this split (economic and politic), but, it doesn’t seem to be the best thing. Ferrari is maybe the world’s best-known car brand with the highest number of fans (more than 11 million in Facebook). It is the referent of sporty and high performance cars, and is one of the brands to lead in technology field. This amazing car brand is also an example of how to do the best marketing. Unfortunately these good aspects of Ferrari don’t make part of the other brands of the group. It seems like Ferrari lives in its own territory away from the troubled FIAT GROUP. The situation between Ferrari and Fiat is like the son that became rich and doesn’t want to know anything from its poor and complicated family. It’s quite understandable Ferrari’s position as it wants to protect its image staying distant from the FIAT GROUP. Part of the success of Ferrari is not only the cars they produce, but the brilliant way they sell and promote them. Part of the problem of Fiat is the bad image it has among many buyers.
This weird relationship will change. It makes no sense to have one brand suffering because of image, and another one making use of it. Ferrari gained its good reputation thanks to hard work and excellent cars. Then it should help its troubled brothers so they can make use of its experience and improve their position in the market. The question is how to place FIAT and CHRYSLER global Brands (Maserati, Alfa Romeo, Jeep, 500 BY FIAT and Abarth) and Ferrari in the same place: different brands with different targets. Ferrari’s know how is an extremely valuable asset for them. There will be more cooperation between them and just as it happens with Ferrari and Maserati (they share engines and technologies), the same will happen with Alfa Romeo and Jeep.
Besides this collaboration, the new Ferrari Group will work more on associating Ferrari’s name with the other brands. So people will realize that the group that makes the awesome Ferraris is the same one that builds the popular 500 and Jeep Grand Cherokee. It means that the group will focus on more communication efforts to outline that they are all ItalianAmericans and they can do the best high performance cars, but also the best city cars.
Ferrari Group
Alfa Romeo is central to the new strategy of the new Group. Just as Jeep is sold all over the world but is American to the core, Alfa’s DNA will be authentically Italian. Fiat will move to the top of the mass market with the Panda and 500 families.
Chairman and CEO
Fiat also plans to move its primary stock market listing out of Italy. The new Ferrari Group is considering New York and Hong Kong as landing spots, while making the current listing in Milan a secondary one.
Mr. Sergio Marchionne said, “we’ll go where there is easier access to capital. There is no doubt that the market is more fluid in the U.S., in New York. I am also ready to go to Hong Kong to fund the effort to Chrysler.”
Ferrari Group Headquarter New York or Hong Kong
The headquarters will move to the chosen stock exchange, Mr. Sergio Marchionne CEO said, “but let me say that it is a matter that is purely symbolic, emotional. The headquarters of FIAT Industrial moved to Holland, but the production that was here in Italy has remained here in Italy.” So it will be now with the new ItalianAmerican Ferrari Group.
FIAT CHRYSLER AUTOMOBILES: FCA or better Ferrari Group?
The new ItalianAmerican car maker FIAT-CHRYSLER plans to adopt a new name (Ferrari Group) and pursue a second stock listing (New York or Hong Kong).
The Story
There are several types of marriages and partnerships. In automotive world it’s common to hear about merges, acquisitions and divorces among car makers that look to survive. There are strong ties such as VW and Porsche, BMW and Rolls-Royce, and so on. There are other with more difficulties, like GM and Opel. But perhaps there’s only one with the most weird situation: Fiat and Ferrari. Few people know that the fantastic super car manufacturer makes part of Fiat, and there are many reasons that explain this. First of all, Fiat’s automotive division is divided into two mainly parts: Fiat Group Automobiles, which includes Fiat brand, Fiat Professional, Lancia, Alfa Romeo, Abarth, Jeep, and Mopar. And Luxury and Performance brands that include Ferrari and Maserati. This will change now, Fiat owns the remaining part of Chrysler. Fiat also may switch from the Milan exchange to NY or Hong Kong now the purchase operation is completed.
The division between Fiat and Ferrari includes different legal societies, events, management, marketing, and finance (their results make part of the same report but their operations and details are separated). That’s how Fiat headquarters in Turin are not involved in Ferrari’s day-to-day activities. There are a lot of reasons for this split (economic and politic), but, it doesn’t seem to be the best thing. Ferrari is maybe the world’s best-known car brand with the highest number of fans (more than 11 million in Facebook). It is the referent of sporty and high performance cars, and is one of the brands to lead in technology field. This amazing car brand is also an example of how to do the best marketing. Unfortunately these good aspects of Ferrari don’t make part of the other brands of the group. It seems like Ferrari lives in its own territory away from the troubled FIAT GROUP. The situation between Ferrari and Fiat is like the son that became rich and doesn’t want to know anything from its poor and complicated family. It’s quite understandable Ferrari’s position as it wants to protect its image staying distant from the FIAT GROUP. Part of the success of Ferrari is not only the cars they produce, but the brilliant way they sell and promote them. Part of the problem of Fiat is the bad image it has among many buyers.
This weird relationship will change. It makes no sense to have one brand suffering because of image, and another one making use of it. Ferrari gained its good reputation thanks to hard work and excellent cars. Then it should help its troubled brothers so they can make use of its experience and improve their position in the market. The question is how to place FIAT and CHRYSLER global Brands (Maserati, Alfa Romeo, Jeep, 500 BY FIAT and Abarth) and Ferrari in the same place: different brands with different targets. Ferrari’s know how is an extremely valuable asset for them. There will be more cooperation between them and just as it happens with Ferrari and Maserati (they share engines and technologies), the same will happen with Alfa Romeo and Jeep.
Besides this collaboration, the new Ferrari Group will work more on associating Ferrari’s name with the other brands. So people will realize that the group that makes the awesome Ferraris is the same one that builds the popular 500 and Jeep Grand Cherokee. It means that the group will focus on more communication efforts to outline that they are all ItalianAmericans and they can do the best high performance cars, but also the best city cars.
Ferrari Group
Alfa Romeo is central to the new strategy of the new Group. Just as Jeep is sold all over the world but is American to the core, Alfa’s DNA will be authentically Italian. Fiat will move to the top of the mass market with the Panda and 500 families.
Chairman and CEO
Fiat also plans to move its primary stock market listing out of Italy. The new Ferrari Group is considering New York and Hong Kong as landing spots, while making the current listing in Milan a secondary one.
Mr. Sergio Marchionne said, “we’ll go where there is easier access to capital. There is no doubt that the market is more fluid in the U.S., in New York. I am also ready to go to Hong Kong to fund the effort to Chrysler.”
Ferrari Group Headquarter New York or Hong Kong
The headquarters will move to the chosen stock exchange, Mr. Sergio Marchionne CEO said, “but let me say that it is a matter that is purely symbolic, emotional. The headquarters of FIAT Industrial moved to Holland, but the production that was here in Italy has remained here in Italy.” So it will be now with the new ItalianAmerican Ferrari Group.