Monday October 19, 2015
Fiat Chrysler wil put 10% of the total Ferrari shares on the market this Wednesday. The idea is valued at $9.8 billion. Production will be increased from 7,000 to 9,000 a year. CEO Marchionne claims that will not water down the demand or sales.
Now appreciate that annual auto and light truck sales in the US this year will be some 16 million. So we are talking the tiniest sliver of the luxury market. Buyers typically wait a year for their delivery and prices start well into six figures.
The brand is touted as recession proof, the Middle East money just keeps pouring in.
Mood wise this is occurring right at the top of the stock market recovery form the August sell off. From that standpoint it should be well received.
Professor Elam 
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