MASERATI BEATS FERRARI IN PROFIT

Thanks to the former Chairman and CEO of Ferrari, sister company Maserati has made more profit than the sports car maker for the first time in 25 years. Maserati, maker of exclusive cars like the Ghibli and Quattroporte, reported a third quarter profit of €90 million (around R1.22 billion), compared to Ferrari’s €89 million (R1.21 billion).

Ferrari 458 Speciale 2

A “minor” difference it may appear to be, but as you might well agree, every cent counts. So what does this have to do with ex-CEO Luca di Montezemolo? Well you will recall that the 67 year-old was given the boot, effective two weeks ago. Part of his “retrenchment” package includes a €26.96 million (roughly R368 million) payment to be split in two parts, one payable in January and the rest he can expect in instalments spanning the next 20 years. That €26.96 million would have taken Ferrari up to €115.96 million, had it not been set aside for Mr Montezemolo. Or at least €102.48 million in the short-term. Interestingly, this money hasn’t been paid yet; it’s merely being set aside, and yet it already reflects on the brand’s performance between July and September 2014.

 

Former Ferrari chairman Luca Di Montezemolo has apparently affected his former employer's profits.

Former Ferrari chairman Luca Di Montezemolo has apparently negatively affected his former employer’s profits.

In related news, Fiat Chrysler Automobiles has decided to sell 10% of its existing 90% stake in Ferrari to the public. Then 80% will go to existing FCA investors. The remaining 10% that FCA does not already own will stay with brand founder Enzo Ferrari’s son Piero. The floatation transaction is expected to yield about €916 million.

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