VW eyeing off Ferrari
Volkswagen is reportedly interested in buying a stake in legendary Italian brand Ferrari.
Volkswagen is reportedly looking to add a Prancing Horse to its growing stable of supercar makers.
Car industry bible Automotive News says the cashed up German carmaker, which already owns the famous Lamborghini, Porsche and Bugatti brands, could buy into Ferrari if the Italian supercar maker’s owner, Fiat, decides to partially float its most profitable brand.
VW chairman Ferdinand Piech has already expressed an interest in Fiat’s Alfa Romeo brand, but German media reports suggest that Ferrari is his ultimate goal.
Analysts estimate Ferrari could be worth between 2.3 billion and 3.5 billion euros ($3.2 to $4.8 billion), which shouldn’t present any problems for a company that is believed to have cash reserves approaching $30 billion.
Automotive News says Fiat may be looking to sell a partial stake in Ferrari to raise funds to increase its share in struggling US carmaker Chrysler.
The Italian maker formed an alliance with Chrysler last year and is looking to dramatically expand its presence in the lucrative US market. The first Fiat-designed vehicle to debut under the Chrysler alliance will be a new Dodge sedan, due by the end of next year.
Fiat currently owns 20 per cent of Chrysler but is hoping to be able to lift its stake to 35 per cent during next year, before floating the US car maker and finally taking its ownership to more than 50 per cent.
It is unsure whether any potential public offering of Ferrari would include the Formula One team. Reports earlier this year suggested Volkswagen was interested in entering the F1 Championship through either its Porsche or Audi sub-brands, but more recent reports out of Germany suggest it has shelved those plans.
It may be that the plans have been shelved with a potential Ferrari F1 stake in mind.
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