Fiat Chrysler Automobiles said that tax issues have caused the delay of a planned initial public offering of 10% of its luxury sports car maker Ferrari. Initially, FCA said that the sale will occur in the first half of 2015 but it now says that it will take place in the third quarter of 2015 and that it definitely won’t happen before October 12.
CEO Sergio Marchionne addressed reporters in Venice last Friday. He cited tax reasons for the delay. He explained that before any additional listing could be done, a full year has to pass from the creation of FCA (which debuted on Oct. 12, 2014 on Wall Street). This listing is included in a plan to spin off Ferrari and for FCA to be able to distribute the remaining stake to shareholders.
In 2009, Fiat acquired management control of Chrysler after it emerged from bankruptcy. The buyout was completed this year. In 2014, all of its businesses were combined as Dutch-registered FCA. It has its financial domicile in the UK with a small headquarters in London. Its traditional operating hubs are located in Turin and Detroit.
In addition, Marchionne said that he will remain as the chief of FCA if he is asked to even after a business plan that will be completed in 2018 and if a consolidation process has started. Marchionne has been vocal about his wish to limit the number of automakers around the globe to help sustain the big investments required to cope with the demands for vehicles that are safer and have lower emissions.
Last month, it was reported that Marchionne sent GM CEO Mary Barra an email to meet and talk about the merging of the two companies. He didn’t deny this report and has stated that he is talking to “everyone” in the industry.
However, he said that his email to GM was “not the same as the others." He referred to the auto business as “difficult,” adding that he is the “only guy with the intellectual honesty” to admit this.