Fiat Chrysler to spin off Ferrari into separate unit BBC News - Fiat Chrysler to spin off Ferrari into separate unit Quote:
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I feel stupid to ask... but what does this mean in terms of future of Ferrari? Thanks for clarifying. |
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Good: Ferrari is a high prestigious brand. By becoming a fully independent company, it can focus more on what it wants to do rather than following the general guideline from its parent company. Bad: Fiat was all $$$ and a company much larger in scale. This has allowed Ferrari to have access to have an economy of scale to its suppliers while being a minor manufacturer. Without having Fiat behind, their parts and other stuff might become more expensive for them given their quantity. Furthermore, depending on how well the new Ferrari is going to manage its finances, losing Fiat as its source of fund could prove that Ferrari will take longer to introduce new platforms as they are usually costly to develop and deploy. |
Another result of this would be that Ferrari might dilute its brand more. AFAIK, european automakers have to meet emissions targets, but Ferrari's spew out high CO2. As Ferrari was part of Fiat, their results were averaged with them. Now, Ferrari might have to come up with an all electric plug in car kinda like how Aston Martin had the cygnet. |
I think that's part of the reason why Fiat separated Ferrari from themselves. It's an easy way to meet stringent http://en.wikipedia.org/wiki/European_emission_standards |
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