USA RECALL - FERRARI - over 800 cars over Eight models, all for airbag issues, from Takata Corp, AGAIN.

Luxury supercar maker Ferrari is recalling 814 vehicles, costing from $200,000 to more than $1.4 million, to fix driver-side airbags that were installed at an improper angle.

The airbags were discovered when Ferrari was doing tests on a 458 Italia’s steering column, according to documents posted to the National Highway Traffic Safety Administration website today. The airbag deployed in a rotated orientation, Ferrari said, which could cause injury.

The Italian manufacturer, owned by Fiat Chrysler Automobiles NV, found that the leather skin covering the airbag module had been improperly glued and the air-bag cushions had been installed at the wrong angle. The recall covers eight different models made from December to April this year.

Although the airbags were produced by troubled Japanese supplier Takata Corp., the defect isn’t the same as in the Takata airbags that have exploded and sent shrapnel toward drivers and passengers. That recall affects more than 34 million inflators worldwide and has been linked to at least eight fatalities.

No fatalities or injuries were reported in the documents Ferrari filed with the U.S. regulator. As required by law, Ferrari will replace the driver-side air bags free of charge. The recall is expected to begin July 30.

The recall covers the 458 Italia, the 458 Spider, the 458 Speciale, the 458 Speciale A, the California T, the FF, the F12 Berlinetta and the LaFerrari. All the affected cars were manufactured between Dec. 19, 2014, and April 29, 2015.

Suggested list prices range from $202,000 for the California T to $1.42 million for the LeFerrari, according to Car and Driver website.

Fiat Chrysler CEO Sergio Marchionne said July 10 that an initial public offering for a spun off Ferrari SpA was “days away.”

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Ferrari sell off helps Fiat Chrysler Automobiles Debt drop by up to $894 Million.

Fiat Chrysler Automobiles expects its net industrial debt to drop by about $894 million (715 million euros) thanks to a planned Ferrari spin-off, a regulatory filing showed on Wednesday.

FCA had already said in a separate filing with U.S. market regulator SEC earlier this month that it would receive 2.25 billion euros from Ferrari before it spins off the luxury sportscar unit from the group next year.

The company added on Wednesday that this payment and the removal of Ferrari's own debt of 133 million euros from the parent group's accounts would be offset by the loss of Ferrari's cash and receivables worth 1.67 billion euros.

FCA had net debt of 11.37 billion euros at end-September. The company added in the filing that the final impact on its debt could "differ materially" from the projected amount given potential changes to its own and Ferrari's debt at the time the spin-off occurs.

CEO Sergio Marchionne, who also serves as Ferrari chairman, said in October he would spin off the unit, sell a 10 percent stake via a public offering and distribute the rest of FCA's stake in the luxury sports car brand to its shareholders.

The spin-off is part of a bigger capital-raising plan that also includes a $2.5 billion mandatory convertible bond issue and a share sale to help cut debt and fund an ambitious business plan at the world's seventh-largest carmaker.

Marchionne said at the time that all the measures would inject 4 billion euros into the group.

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Kimi and the F12berlinetta, The ultimate track day driver.

Eleven journalists from the world’s leading motoring publications have taken part in a special F12berlinetta track day at Fiorano. 

Assisted by Ferrari’s engineers and team test-drivers, they were given the opportunity to really clock up the miles as they endeavoured to push both themselves and the car to the limit. The group learned to exploit both the 740 hp unleashed by the mid-front V12 and the sporty car’s brilliant natural balance to the fullest too.

The wet track also allowed the journalists to experiment with the various different Manettino settings to push the car’s performance in a variety of grip levels. But all the various dynamic controls were off when Scuderia Ferrari driver Kimi Räikkönen got behind the wheel and provided some very special instruction. 

The guests then enjoyed the thrill of lapping Fiorano at the World Champion’s side as he gave vent to the F12berlinetta’s enormous power, delivering not just record performance in the fastest car in the Prancing Horse range but also huge fun. An unforgettable experience as can be seen from the onboard video footage of the passengers’ faces.

FCA to sell of Ferrari to raise funds to grow main businesses.

The Board of Directors of Fiat Chrysler Automobiles N.V. (NYSE: FCAU) (“FCA”) today announced that it has authorized the offer and sale of FCA common shares and mandatory convertible securities in offerings to be registered with the U.S. Securities and Exchange Commission.

FCA anticipates that it will offer up to 100 million FCA common shares including 35 million common shares currently held in treasury by FCA and approximately 54 million common shares that will be issued by FCA to replenish the share capital canceled following the exercise by Fiat S.p.A. (“Fiat”) shareholders of cash exit rights under Italian law in connection with the cross-border merger of Fiat S.p.A. into FCA. 

Those Fiat shares were redeemed and cancelled in the merger as required by Italian law. 

U.S.$2.5 billion in aggregate principal amount of mandatory convertible securities are expected to be offered in an SEC-registered offering to U.S. and international institutional investors. 

The mandatory convertible securities will be mandatorily convertible into FCA common shares at maturity. The interest rate, conversion rates and other terms and conditions of the mandatory convertible securities will be determined at pricing of the offering. It is expected that investors participating in the offering, subject to completion of the spin-off of Ferrari being announced today, will be entitled to participate in the spin-off and receive shares of Ferrari pursuant to customary provisions adjusting the conversion terms.

The offerings are expected to be completed by the end of 2014. The timing of the offerings remains subject to market conditions, as well as registration requirements under applicable law.

Ferrari at the Goodwood Festival of Speed.

Ferrari is proud to announce the Goodwood debut of the  new California T and 458 Speciale at this year’s Festival of Speed. In addition, the Ferrari F12berlinetta, fresh from receiving the Compasso d’Oro design award, will also be making a return to this year’s event. 

Ferrari’s new Grand Tourer, the California T, will appear at Goodwood this year showcasing its all-new turbocharged V8 engine. Maranello’s engineers have managed to design a remarkable power unit that combines classic Ferrari engine qualities, such as razor-sharp responsiveness, blistering performance, superbly powerful acceleration at all speeds and an exhilarating soundtrack, with the advantages of turbo technology, such as significantly reduced emissions and fuel consumption, a high specific power output and compact dimensions. This is a  genuinely unprecedented achievement that sets a new benchmark for the industry.   

The 458 Speciale is the result of the search for extreme technology, driving thrills and performance, with the application of advanced technical solutions for the powertrain, aerodynamics and vehicle dynamics. It is the first regular production Ferrari to have active aerodynamic devices on the rear diffuser, as well as mobile aerodynamic devices at the front, and it is these elements which set it apart from the 458 Italia from which it is derived to an extent unprecedented in the previous 360 Challenge Stradale and 430 Scuderia special series. The 458 Speciale’s performance is exceptional across the board, with acceleration from 0-62.5mph in 3 seconds and a Fiorano lap time of 1’23”5.

The F12berlinetta, which made its UK debut here last year, will return to Goodwood. Having already won the ‘International Engine of the Year’ Performance Engine and Above 4-litre class award in 2013 and the 2012 Top Gear award for ‘Supercar of the Year’, the Ferrari F12berlinetta has now been awarded one of the oldest and most prestigious accolades in the world of design: the Compasso d’Oro.

Ferrari will also be represented by the Scuderia Ferrari team who will be demonstrating the 2009 F60 Formula 1 car driven by ex-F1 driver, Pedro de la Rosa. Special guests Kimi Räikkönen and John Surtees will celebrate the 50^th anniversary of the latter’s F1 Championship title in a special Shell celebration event on Sunday, the 29^th of June. Each will drive their respective Championship-winning cars - Räikkönen his F2007 and Surtees a 1964 158 F1.

Ferrari announces yet more increases during Q1 trading.

REVENUES: 620 MILLION EURO (+12.5%) TRADING PROFIT STABLE AT 80 MILLION EURO NET PROFITS: 57 MILLION EURO (+5%)

RECORD NET INDUSTRIAL FINANCIAL POSITION: 1.5 BILLION EURO

ROAD CARS DELIVERED: 1,699 (-6%) US (+8%) AND UK (+3%) MARKETS BUOYANT. SALES TO JAPAN ALMOST DOUBLE

The Ferrari Board of Directors met today chaired by Luca di Montezemolo to consider the company’s financial results for the first quarter of 2014.  

The first three months of the year brought growth in all the key economic indicators, a very meaningful result given that production of the California is currently phasing out, while no new California Ts have yet been delivered.  Ferrari’s strategic decision to reduce its output in order to maintain its cars’ exclusivity and high residual value was taken in May last year and thus had no impact on first quarter 2013.

 

Revenues leaped by 12.5% to 620 million euro despite a 6% drop in the number of road cars delivered: with total of 1,699, 100 less than last year. 

Net profits rose 5% to over 57 million euro, while trading profit equalled last year’s excellent 80 million euro. 

The first quarter of 2014 also confirmed Ferrari’s ability to generate strong cash flows, with a net industrial financial position just shy of one and a half billion euro at March 31^st. This 1,487 million has reached an unprecedented level in the company’s history and its growth has been such that this figure has practically doubled in the course of the last two years.

Net industrial cash flow has been excellent, reaching 129 million euro in the first quarter of the year.

Ferrari’s ROS (Returns On Sales) was again very robust, surging to 13% despite still-significant investments in product.

During today’s board meeting, Chairman Luca di Montezemolo declared: “We want to keep total production of the cars in our range under the 7,000 mark once again this year whilst strengthening our economic results. This target poses an even greater challenge in the light of the very substantial investments we are making in both our product and Formula One where an exceptional effort, financially as well, is required to bridge the gap with our competitors.”

The US market continues to perform well with demand remaining consistently high. In fact, despite deliveries being restricted, there was still 8% growth with 494 Ferraris sent across the Atlantic.

The market in the Middle East continues to expand too and was up 6% with 150 deliveries.

In the Far East, sales in Japan almost doubled with 128 cars delivered, 57 more than in the first quarter of 2013. China too is yielding positive results with 73 cars delivered, an increase of 4%. There is also huge expectation building in the country regarding the 458 Speciale: in fact, our order book in Greater China(People’s Republic of China, Hong Kong and Taiwan) swelled by 42% in the first quarter of this year.

In Europe, demand remains high in the United Kingdom with 168 cars delivered (+3%), allowing it to retain its position as the Continent’s leading market. After months of negative results, sales have begun to rise once again in Italy: 63 cars were delivered, an increase of 13%. However, on an annual basis, it is expected that the domestic market will remain marginal, accounting for less than 3% of total deliveries. Ferrari recorded a slight drop in demand in Germany where 162 were delivered (around 30 less than last year) in line with the decision to limit the number of cars sent to more mature markets as well as the end of the California’s life-cycle.

Also in the first quarter of 2014, our brand activities (licensing, retail, e-commerce) saw a 19% advance in direct retail revenues with e-commerce up by 10%. Several important new licencing agreements were also signed in the early months of the year, including one for the building of the Ferrari Land theme park in Spain and another with the world-leading eyewear company, Oakley, for an eyewear range and sponsorship of Scuderia Ferrari.

Ferrari continues to be strongly committed to digital media and will make significant investments in this area in 2014. In the first quarter of the year, all of its websites enjoyed double figure growth, while its Facebookpage now has 16.5 million fans and its official YouTube channel has had 40 million views.

Ferrari production staff awarded record bonus - lucky buggers.

Ferrari has announced that its production bonus for employees for 2013 will amount to 4,096 euro, the highest ever awarded in the company’s history.

The production bonus is in recognition of the excellent financial results achieved last year, not least of which were record profits, in addition to other parameters, such as levels of quality.  

This means that, on top of the two advances of 1,000 euro each already received, Ferrari employees will find an extra 2,096 euro in their pay packets this month. For a young employee hired recently, this equates to an extra 20 per cent of his or her annual salary.

This bonus, the result of an agreement signed with the unions in 2012, is linked to a grid of operational values with the objective of sharing the company’s success.

Last year, as well as the production bonus, an additional three-yearly bonus was paid out and Chairman Luca di Montezemolo has announced its extension for a further three years.

In 2013 Ferrari adopted a strategy to reduce production to under 7000 cars a year to preserve their exclusivity and value over time, and this strategy will continue this year and into 2015.

Last year revenues increased by 5 per cent and trading profits rose by 8.3 per cent. These are unprecedented figures, as is the net financial position which, at the end of 2013, stood at an all-time high.