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TOTD: Is Ferrari's Separation from Fiat Chrysler a Good Thing?

Motor Trend logo Motor Trend 10/29/2014 Karla Sanchez

News just broke today that Ferrari will go down its own separate path after splitting from the FCA empire next year. While FCA makes it seem like it's the best decision for both parties, we want to know if you think it's a good or bad move.

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FCA says the separation would allow Ferrari to preserve the "cherished Italian heritage and unique position of the Ferrari business," but do you think Ferrari will flourish as a standalone company? Being on its own could give it more room for creativity, however, not having a larger organization’s economies of scale could hurt it in some areas. Meanwhile, not having Ferrari as part of FCA could hinder development- and tech-sharing with Maserati. The upcoming Maserati Alfieri, part of the automaker's five-year plan, was reported to benefit from a Ferrari-sourced 4.7-liter V-8, though the five-year plan revealed the Alfieri coupe and cabrio would utilize a V-6 engine tuned to make 450 and 520 hp. And even though the 3.0-liter twin-turbo V-6 in the Ghibli is designed by Maserati, it's built by Ferrari. 2014 Maserati Ghibli S Q4 Front View In Motion© Provided by MotorTrend 2014 Maserati Ghibli S Q4 Front View In Motion

On the plus side, the initial public offering FCA plans to offer for Ferrari should generate a tremendous amount of cash that could go toward research and development elsewhere in the company. A total of roughly 100 million shares – or 10 percent – in Ferrari valued at $2.5 billion will be available for purchase through a U.S. stock exchange, and likely a European stock market later on. The remaining 90 percent will first be offered to current FCA shareholders, including the Agnelli family that founded Fiat.

Keeping all this in mind, do you think Ferrari is better off on its own? Let us know in the comments below for today's TOTD.

2015 Ferrari California T In Red With Sunset© Provided by MotorTrend 2015 Ferrari California T In Red With Sunset
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