Ferrari wins rich $10 billion valuation in Wall St IPO

NEW YORK, United States—Ferrari, the inimitable Italian luxury sports car maker, garnered a rich $10 billion valuation on Wall Street Tuesday as its initial public offering went out at $52 a share.

The share sale by parent Fiat Chrysler Automobiles came in at the high end of its predicted range, demonstrating substantial enthusiasm by investors and an endorsement of Fiat Chrysler chief executive Sergio Marchionne’s plan to bring the legendary mark of the prancing horse to the US market.

Underwriters offered 17.2 million shares of Ferrari, comprising about nine percent of the company, according to banking sources. Fiat Chrysler had expected to price the offering at between $48 and $52 a share.

The shares are expected to begin trading Wednesday, under the ticker “RACE,” with market watchers waiting to see how the company is greeted on the New York Stock Exchange.

The market’s reception for IPOs has been somewhat meek in recent weeks, and analysts point out that demand for high-end luxury goods in a key growth market for Ferraris, China, has slowed down.

But the company was effusive about prospects for its six hyper-powered models in the IPO filing.

Ferrari shipped 7,255 new cars to its wealthy customers last year and the prospectus envisages only a gradual expansion to around 9,000 a year by 2019.

“We believe our cars are the epitome of performance, luxury and styling,” it said.

“We intend to maintain and extend our leading position in the luxury performance sports car market and to continue to protect and enhance the value and exclusivity of the Ferrari brand and its association with the lifestyle we believe it represents.”

Fiat Chrysler raising cash

The move comes one year after Italian giant Fiat sealed its takeover of the better-performing US automaker Chrysler in an ambitious, slow-moving merger engineered by Marchionne.

Weeks after that, the company said it would split off the hallowed Ferrari brand. The IPO is the first step in that direction.

As a unit of Fiat Chrysler, the supercar maker has been a cash generator. In 2104 it reported net revenues of 2.76 billion euros ($3.13 billion), and a net profit of 265 million euros.

Revenues grew seven percent a year between 2005 and 2014, and margins increased strongly over the same period.

Fiat Chrysler owns about 90 percent of Ferrari and, with a high debt level, could benefit from raising cash in the sale.

At the end of June, the carmaker had net debt of $10.8 billion due to a combination of the costs of the Chrysler takeover and ongoing loss making activities in Europe.

Now Fiat Chrysler plans to invest some $48 billion to expand its total worldwide sales to seven million vehicles per year, largely through the development of its Jeep, Alfa Romeo and Maserati brands.

Marchionne has been pushing the idea of another merger with a major brand—General Motors is his named target—in the belief that only more consolidation in the global auto industry will guarantee a company’s survival.

Analysts say Marchionne, who is also chairman of Ferrari, has been astute in bringing a restricted number of shares to market—a strategy that mirrors Ferrari’s own market approach of keeping production tight to preserve their exclusive cachet.

The flotation will not have any impact on Ferrari’s involvement in Formula One racing, in which it is reemerging as a force after enduring a lean period in the slipstream of world champion Lewis Hamilton’s Mercedes team.

Ferrari’s status as the longest-established and most celebrated team in motor sport’s elite championship is vital to the value of its brand.

It also accounts for more than 10 percent of its revenue through sponsorship and related commercial agreements, including licencing of the company’s name and its famed logo in sportswear, watches, accessories, consumer electronics and theme parks.

The listing will leave Fiat Chrysler with 80 to 81 percent of Ferrari which the parent company intends to distribute to its own shareholders next year.

Piero Ferrari, a son of legendary founder Enzo Ferrari, will retain a ten percent stake after the flotation.

source: business.inquirer.net

Porsche recalls new 911 model due to engine fire risk

FRANKFURT — Porsche, the German maker of luxury sports cars, said Wednesday it is recalling all 911 GT3 models built this year due to risk of possible engine fire.

Porsche said in a statement that it will replace the engines of all 785 of the high-priced 911 GT3 sports cars built in 2014.

No other models or series were affected by the recall, which was in response to two engine fires, the statement said.

“In order to rule out every possible risk for customers,” Porsche has instructed owners to park their cars and have them picked up by their nearest dealer.

The fires were caused by a loose fastener on the connecting rod.

The loosened connecting rod could damage the crankcase and cause oil to leak. The leaking oil could possibly cause the fire.

Porsche did not say how much its expensive recall will cost.

source: business.inquirer.net

Jaguar Philippines launches F-Type sports car

Jaguar Cars, Inc. (JCI) unveiled the Jaguar F-Type today at the Jaguar Lifestyle Centre at Bonifacio Global City, Taguig.

The new Jaguar F-Type represents a return to the company’s heart: a two-seat, convertible sports car focused on performance, agility and driver involvement. This is also a continuation of a sporting bloodline that dates back to more than 75 years, focusing on delivering performance, agility and maximum driver involvement.

“The ownership of a Jaguar has never been a stronger statement globally. Its performance is all about the aspects of engineering and technological excellence,” said Mr. Wellington Soong, Chair and President of Jaguar Cars, Inc. “This is also a tribute to Sir William Lyon’s ‘Poetry in Motion’.”

The Jaguar F-Type V8 S Petrol combines low vehicle weight (starting at 3,521 pounds), high powered engine (at 495hp) and superb aerodynamics to achieve a pure sports car experience, yet with Jaguar’s known elegance and luxury.



A true two-seat sports car, the all-new Jaguar F-Type is equipped with a modern, lightweight soft top that, when lowered, serves as its own tonneau cover. This not only provides weight efficiency, but also improves packaging and contributes to the car’s low center of gravity for greater sporting agility.

Just like the other members of the Jaguar family, the F-Type has also capitalized on its sinuous, muscular elegance while it adapts to the modern times. The two “heartlines” define the profile and top-down view of the F-Type. The main “heartline” begins in the blade dissecting the shark-like gills on either side of the grille that runs up and forms the sharp top crease of the fender line, providing sight lines that aid the driver in cornering maneuvers. The second “heartline” swells out to form the muscular rear haunch before sweeping dramatically around the rear of the car. With its clean, sleek lines of the tail, it deploys at speed to reduce aerodynamic lift.

For that sports car touch, the top can be fully raised or lowered in just 12 seconds at a speed of up to 48 kph. Its multi-layer construction includes a 3M Thinsulate lining for optimal thermal and sound-insulating properties.


“We wanted the experience of sitting in the F-TYPE to be exciting. A sports car cockpit should be an intimate place and so we aimed to get a sense of the surfaces falling towards and then wrapping around the driver,” said Ian Callum, Director of Design for Jaguar.

Also, JCI recently launched their leasing program called “Lease 2 Go”. In partnership with BPI Rental Corp., customers will get a chance to drive home with a Jaguar or a Land Rover by just paying the one (1) month rental in advance.

source: motioncars.inquirer.net

DeLoreans getting ‘Back to the Future’ makeovers

DeLorean Motor Co. mechanic Danny Botkin has built six movie replica cars so far, relying on photos he took when he helped restored the original “Back to the Future” car.

“‘Back to the Future’ is getting bigger and bigger, especially among kids who watched the movie in 1985 and now have enough money to own a piece of it,” Botkin said.

Each replica costs about $45,000. Passengers can punch in a “destination time” on the control panel and pull a lever to activate the pulsing lights of the time circuit. The parts are recreated using military surplus and other equipment, such as a jet engine oil cooler.

“We’ve never advertised that we build these,” Botkin said. “It’s just been a side thing we do. If people ask us to do it, we’ll do it.”

The current DeLorean Motor Co. was started by Wynne’s father, Stephen Wynne.

He bought the original company’s remaining parts. The parts, including 1,000 gullwing doors, fill 40,000 square feet (3,700 square meters) of warehouse space in Houston, Cameron Wynne said.

Seven years ago, DeLorean began re-manufacturing the sports car using donor cars that are stripped and fitted with remaining or remanufactured parts.

“We constantly have customers calling us that have had their cars in storage for 10, 20, 30 years, and they want to get rid of it,” Cameron Wynne said.

But the DeLorean isn’t resting on its laurels. The company, which has a handful of locations nationwide and one in the Netherlands, is working on an all-electric version. The company wants it to travel 100 miles (160 kilometers) on a charge and accelerate from 0 to 60 mph (0 to 96 kph) in under 5 seconds.

However, it won’t need the 1.21 gigawatts of electricity required by Doc Brown’s version.

source: business.inquirer.net