Ferrari
The name stands for the Italian automobile manufacturer, designer and racing car driver whose Ferrari cars often dominated world racing competition in the second half of the century. In 1920 he became a racing car driver for Alfa Romeo Company and in 1929 he formed a racing stable, Scuderia Ferrari, which remained Alfa Romeo's official racing team even after Ferrari himself ceased to drive in races in 1932. The first racing car completely designed by Ferrari himself was built in 1937, for Alfa Romeo. Later in 1939 Ferrari severed his team connection with Alfa Romeo and formed his own company as Ferrari SpA. (Britannica, 745)Enzo Ferrari sold a 50% share of his company to Fiat SpA in 1969 but he remained president of the firm until 1977 and retained control over the Ferrari racing team till his death. After his death ferrari's main share holder has been the Italian based Fiat Automotive group with 90 % of the share holdings and the other 10% is held by Piero Lardi-Ferrari, son of the company's founder."In the year 2002 Ferrari announced that whilst turnover and operating result were up 14% compared with year 2001 but their profit before tax declined from 72.3 million Euros in 2001 to 41.7 million in 2002, largely as a
These extraordinary expenses were due to tax amnesties and additional remuneration paid to Luca di Montezemolo (18. Ferrari is stepping up its drive into non-automotive activities by developing its own financial services and insurance operations, the car maker which also owns Maserati has also signed a deal with Marsh & McLennan, the U. And simultaneously an IPO would provide the company with a boost to regain its lost market for Maserati in the U. On the other hand, they would be exploring horizontal diversification. The company's non-automotive strategy has been drawn up to increase turnover and profitability without sharply increasing the output and increase production of Maserati cars from 2000 this year to 10000 annually by 2005. Ferrari is contemplating that an IPO, is being analyzed and designed to cut its debt of Euros 6 billion. 2 million Euros) and Jean Todt (3 million Euros), in recognition of their contributions to the increased prestige and value of the company. However analysts at Ferrari believe that keeping in view the image of Ferrari, they can not venture in strategies focusing on quantity and catering the needs for the bigger markets. The company is also considering launching retail financial services backed by Fidis, the financial arm of Fiat and expanding its franchised accessories business. But the underlying factor is that Ferrari is also faced with growing competition such as Porsche, its German arch-rival which has increasingly become the most profitable brand in the motor industry. However, there are also considerations within the firm as to when exactly to launch an IPO. Montezemolo successfully re-launched Ferrari's production car division, which now builds more than 4000 units a year at a substantial profit.
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