Fiat Chrysler, Ferrari split

Fiat Chrysler Automobiles (FCA) said Wednesday it would spin off its Ferrari subsidiary into a separate company next year to raise fresh capital.

The automaker said the move was part of a wider plan to boost growth after the merger of Fiat and Chrysler and subsequent listing on the New York Stock Exchange earlier this month.

"It is proper that we pursue separate paths for FCA and Ferrari," CEO Sergio Marchionne said.

Shares in Ferrari will be listed in the United States and "possibly" in Europe though a public offering of 10 percent of FCA's stake in Ferrari. The rest of FCA's shares will go to FCA shareholders.

The announcement came as the carmaker reported it had returned to a net profit of 174 million euros ($221 million) in the third quarter after posting a loss of 15 million euros a year ago.

Thanks to its successful luxury brands and inroads made in North America and Asia, revenues were also up 14 percent to 23.5 billion euros, as luxury brand sales increased 35 percent.

The idea to make Ferrari a standalone company came as no surprise to industry analysts, who view a spinoff as a way to maximize on the sports carmaker's potential value.

News of the planned split comes around two months after Ferrari's longtime chairman, Luca di Montezemolo, fell out of favor with Marchionne and resigned.

cjc/uhe (AP, dpa, Reuters)