Fiat to rev up Fer­rari’s en­gines

CityPress - - Business -

Fer­rari’s up­com­ing stock list­ing might strug­gle for in­vestor at­ten­tion with com­peti­tors in its own ranks.

Buy­ing one of the Ital­ian su­per­cars, like a Tes­tarossa from the 1980s, has served up gains that are hard to beat.

Vintage Fer­raris have surged nearly sev­en­fold in value since 2006, ac­cord­ing to the Hagerty Price Guide In­dex of Fer­raris, which pools prices of 13 of the most sought-af­ter mod­els from the 1950s to the 1970s. Even newer cars have al­most dou­bled over the past 12 months.

This per­for­mance could be tough for Fer­rari’s stock to match when Fiat Chrysler lists a 10% stake in an ini­tial public of­fer­ing in the com­ing months.

Fiat is hop­ing to reap about $5 bil­lion (R63.09 bil­lion) from spin­ning off its su­per­car di­vi­sion to help fund a $53 bil­lion in­vest­ment pro­gramme that fo­cuses on ex­pand­ing the Jeep, Alfa Romeo and Maserati brands glob­ally.

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