06 Nero (black) 4.3l V8 Manual:6-speed Coupe *carbon Fiber Steering Wheel*low Mi on 2040-cars

Auto blog

Marchionne's FCA-GM merger might come after Ferrari spinoff

Sergio Marchionne is continuing to rumble about working out a merger with General Motors, but don't expect anything big to happen before at least early next year. That's because Marchionne would likely wait for the Ferrari spin-off to be complete before beginning his next big deal, according to Automotive News. While the Ferrari IPO on the New York Stock Exchange is expected in the coming weeks, that only concerns 10 percent of the shares. The remaining 80 percent of stock is being distributed among shareholders in 2016. Piero Ferrari holds the final 10 percent with no intention to sell. This strategy allows FCA to claim 80 percent of the Prancing Horse's profits in the automaker's 2015 financial results. According to Automotive News, the tactic has other advantages, as well. FCA would be flush with cash by waiting for the spin-off to be complete, and it would keep Ferrari separate if a GM merger actually happens. Marchionne thinks Ferrari could be valued at over $11 billion in the IPO, and it could make FCA $3.3 billion richer when complete. Marchionne believes a combined FCA/GM could sell 17 million vehicles a year globally and rake in $30 billion in earnings. In the CEO's opinion, the two automakers are wasting money by developing components to do the same things on their vehicles. Although, so far the General's top execs are rebuffing all of his advances.

Are supercars becoming less special?

There's little doubt that we are currently enjoying the golden age of automotive performance. Dozens of different models on sale today make over 500 horsepower, and seven boast output in excess of 700 hp. Not long ago, that kind of capability was exclusive to supercars – vehicles whose rarity, performance focus, and requisite expense made them aspirational objects of desire to us mortals. But more than that, supercars have historically offered a unique driving experience, one which was bespoke to a particular model and could not be replicated elsewhere. But in recent years, even the low-volume players have been forced to find the efficiencies and economies of scale that formerly hadn't been a concern for them, and in turn the concept of the supercar as a unique entity unto itself is fading fast. The blame doesn't fall on one particular manufacturer nor a specific production technique. Instead, it's a confluence of different factors that are chipping away at the distinction of these vehicles. It's not all bad news – Lamborghini's platform sharing with Audi for the Gallardo and the R8 yielded a raging bull that was more reliable and easier to live with on a day-to-day basis, and as a result it went on to become the best-selling Lambo in the company's history. But it also came at the cost of some of the Italian's exclusivity when eerily familiar sights and sounds suddenly became available wearing an Audi badge. Even low-volume players have been forced to find economies of scale. Much of this comes out of necessity, of course. Aston Martin's recent deal with Mercedes-AMG points toward German hardware going under the hood and into the cabin of the upcoming DB11, and it's safe to assume that this was not a decision made lightly by the Brits, as the brand has built a reputation for the bespoke craftsmanship of its vehicles. There's little doubt that the DB11 will be a fine automobile, but the move does jeopardize some of the characteristic "specialness" that Astons are known for. Yet the world is certainly better off with new Aston Martins spliced with DNA from Mercedes-AMG rather than no new Astons at all, and the costs of developing cutting-edge drivetrains and user interfaces is a burden that's becoming increasingly difficult for smaller manufacturers to bear. Even Ferrari is poised to make some dramatic changes in the way it designs cars.

LaFerrari trading at double its list price

If you've been looking at the seven-figure price tags (plus or minus) on the latest batch of hypercars, and wondering how their manufacturers could possibly charge that much, consider that their predecessors typically traded at well above their list price as it is. The Ferrari Enzo, for example, listed for "only" $650k, but with production limited to 349 units, demand far outstripped supply, driving the mark-up into seven-figures. In fact Enzos are still selling for a million or more at auction. Surely Ferrari deserves a piece of that action itself, at least as much as the speculators... hence the $1.7 million sticker price on its successor LaFerrari.
Here's the thing, though: according to the latest reports, buyers are paying that much again just for the privilege of getting their hands on a LaFerrari. In other words, they're paying double the already sky-high asking price: as much as $3.4 million to put it in the same ballpark as the Lamborghini Veneno (whose production was even more limited) and the latest Legend edition of the Bugatti Veyron Vitesse roadster.
The story gets a bit more sane with its rivals, though: according to the analysis reported by Oracle Finance, the McLaren P1 is commanding "only" a $500k premium over list, and the Porsche 918 Spyder "just" $335k extra. However even less expensive new models from high-end automakers like the Lamborghini Huracán and Porsche Macan are reportedly commanding $50k and $10k premiums, respectively.