moparnut
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An overwhelming 98% of FCA shareholders approved thespinoff of Ferrari from Fiat Chrysler. This cutFCA’s net debt from around $11 billion to around $9 billion.
Owning the majority of Ferrari isa tricky situation for FCA; while the company brings in a great deal of cash, the supercar business is fickle, and Ferrari reportedly makes most of its money from licensing its name and from racing. The company is riding high now, and FCA willrealize a heavy profit from its investment.
FCA sold 10% of Ferrari in October to raise $1 billion, and will distribute the rest to its investors; Ferrari will inherit a good deal of debt. (...) →
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Owning the majority of Ferrari isa tricky situation for FCA; while the company brings in a great deal of cash, the supercar business is fickle, and Ferrari reportedly makes most of its money from licensing its name and from racing. The company is riding high now, and FCA willrealize a heavy profit from its investment.
FCA sold 10% of Ferrari in October to raise $1 billion, and will distribute the rest to its investors; Ferrari will inherit a good deal of debt. (...) →
More...