Ferrari shares fall in early trading in their Milan bourse debut as the luxury sportscar maker completes its spin off from parent Fiat Chrysler Automobiles, establishing the Agnelli family as its biggest investor. Hayley Platt reports
It can hit 60 mph in less than 3 seconds. But Ferrari's shares stalled in their first day of trade in Milan. They fell by a third after Fiat-Chrysler offloaded its remaining 80 percent stake, and ended 30 years of ownership. Sergio Marchionne is Ferrari's chairman. (SOUNDBITE) (Italian) FERRARI CHAIRMAN, SERGIO MARCHIONNE, SAYING: "The spin-off gives Ferrari the necessary independence it's always wanted, the independence it's always had on the financial side and that is necessary to uphold the uniqueness of its models and its brand and to fully realise its potential." Ferrari had been the jewel in Fiat Chrysler's crown. But deep debts have forced it to sell off the car that contributed 12 percent of its earnings in 2014. Olaf Storbeck is from Reuters BreakingViews. (SOUNDBITE) (English) COLUMNIST, REUTERS BREAKINGVIEWS, OLAF STORBECK, SAYING: "Ferrari is the most valuable asset in the wider Fiat-Chrysler empire, they raised about a billion dollars in the IPO. Overall it's estimated they generated a windfall of about four billion dollars by this transaction." Like its cars, Ferrari stock isn't cheap. A US IPO in October valued the firm at nearly four times earnings. (SOUNDBITE) (English) COLUMNIST, REUTERS BREAKINGVIEWS, OLAF STORBECK, SAYING: "Ferrari deserves a higher valuation than Fiat Chrysler, or other volume carmakers - it's an iconic brand, it earns much higher operating margins but at the moment, it's a bit excessive." Fiat will now focus on its mass-market cars, and Alfa Romeo and Jeep. They shift many more units than Ferrari, but at much lower margins. It'll now have to prove it can turn a profit, without the Prancing Horse.