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Fiat Chrysler cuts ties with Ferrari

Fiat Chrysler Automobiles (FCA) has announced it is to divest from Ferrari and list a 10% stake on the stock market.

The remaining 90% would be given to FCA shareholders.

FCA is raising the money for a €48 billion euro growth plan.

The carmaker said the board had mandated its management to complete the 'spinoff' next year.

In a statement FCA chief executive Sergio Marchionne said: "Following our acquisition of the minority interest in Chrysler earlier this year, the transformation of Fiat and Chrysler into FCA was completed earlier this month with our debut on the New York Stock Exchange.

"As we move forward to secure the 2014-2018 business plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari.

"The board supports management's determination that this transaction represents FCA's best course of action to support the long term success of the group while at the same time substantially strengthening FCA's capital base."

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