Fiat Chrysler plans to spin off sports car maker Ferrari into a separate company

On Wednesday, Fiat Chrysler Automobiles said in a statement that it has plans underway to spin off sports car maker Ferrari into a separate company next year.

As a result of the planned move by Fiat Chrysler, Ferrari will be spun off as an independent business, with 10 percent floated on the stock exchange. The remaining shares of the spun off Ferrari will be distributed to group shareholders.

According to the statement, the decision to spin off Ferrari is part of Fiat Chrysler's plan to raise capital so that the future growth of the new merged carmakers can be effectively supported.

With the merger of Chrysler and Fiat having been completed, earlier in October, with a listing on the New York Stock Exchange (NYSE), Fiat Chrysler CEO Sergio Marchionne said in a statement that the company deemed it appropriate to "pursue separate paths for FCA and Ferrari."

Asserting that the decision to spin off Ferrari into a separate entity underscores an "additional step in the development of Fiat Chrysler Automobiles," John Elkann - Chairman of FCA - said in an official statement: "Coupled with the recent listing of Fiat Chrysler Automobiles shares on the NYSE, the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business."