Ferrari spinoff to solve FCA debt crisis

The answer to Fiat Chrysler Automobiles' (FCA) mounting debt problems has been found - it will spin off Ferrari and list 10%. Analysts have long been voicing concerns regarding the hefty investment involved in effecting the merger of Fiat and Chrysler, and the situation reached crisis point in the third quarter as debt jumped €1.7bn (US$2.1bn) year-on-year to €11.4bn. On top of the debt, Chief Executive Sergio Marchionne needs €48bn to support his ambitious 2014-18 business plan. It's become clear that an alternative source of capital was needed.