Fiat Chrysler To Seperate From Ferrari Business

Car manufacturer Fiat Chrysler Automobiles (FCA) has announced it intends to spinoff Ferrari into an unconnected company.

The Italian automaker said in a statement that it plans to list the iconic sports car brand on US and European stock exchanges in 2015, as it looks to raise capital to build on the FCA's growth.

A 10th of FCA's shares in Ferrari will be sold on the stock exchange, while the remainder will be divided between existing shareholders.

Fiat recently merged with Chrysler to create FCA, and listed as a joint company on the New York Stock Exchange in early October.

As a result, FCA chief executive Sergio Marchionne said that it was "proper that we pursue separate paths for FCA and Ferrari.

"As we move forward to secure the 2014 to ­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," said Marchionne.

"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."

Ferrari stalwart Luca di Montezemolo resigned as Ferrari chairmann after 23 years at the helm in September, after increasing tension over the brand's F1 team's performance.