Acquired · Apr 13Ferrari: What happens when you staple a luxury brand to a sports team?
Bought 50% of Ferrari in 1969 and the rest in 1988 at a $192 million valuation. Its volume and parts-sharing push took output to 4,500 cars by 1991 and left cars unsold. Marchionne later used the 2015 Ferrari IPO to ease Fiat Chrysler's debt.
Tips
- Fiat tried to fix Ferrari by making more cars, the cardinal sin of luxury▶ 1:47:40Cars went unsold for the first time and workers were furloughed in 1991.
- Enzo Ferrari sold half the company to Fiat in 1969 to keep it Italian and keep racing▶ 1:21:24Valued at 6.8 million dollars in 1969, and at 192 million dollars when Fiat bought the other 40% in 1988.
- Sergio Marchionne used the 2015 Ferrari IPO and debt transfer to repair Fiat Chrysler▶ 2:25:00Ferrari rose from a $9.8 billion market cap at IPO to near $100 billion at its peak.
