Ferrari’s Montezemolo is out | Ferrari should have go private…. already a long time ago

http://www.bloomberg.com/news/2014-09-10/ferrari-chief-steps-down-after-clash-with-fiat-ceo.html

CEO of iconic brand Ferrari has been ousted, bloomberg reports. After over 20 years at the steering wheel, and after even more iconic cars such as LaFerrari and FF, there was a clash of bosses/future identity – namely CEO of Fiat/Chrysler/American style and Luca.

How is that even a possible, at such car company which produces over 7000 cars yearly, at least in several last years? Fiat has been bad company. No good car lineup, at all….. Besides Ferrari it also owns Jeap (still exists??), Alfa Romeo (wtf?), Maserati (could be far better at selling high luxury cars), Abarth (Fiar 500 “sports edition”) and some 20% of (why so much in a very profitable) Chrysler.

For more information Finance google.

 

My take:

It was already about time to let Ferrari go as a private company. With this the company would have a great set of advantages.

  • No information sharing (as opposed to $VOW & Lambo, btw. they have something just over 2000 cars yearly)
  • One boss is king – long-term approach -> Luca (since ’90 already)

Outcome (likely):

Because bosses disagree with car production (Fiat wants more, of course), and given that Luca is out, Fiat will put production to 8000/year at least (very moderate guess). I would be not surprised at all, if they are going to increase this number up to 10,000. However, this will damage the brand significantly.

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