Ferrari's "timely return to the front row of the Formula One grid bodes well for the luxury sportscar maker" as it prepares to list shares and split from parent Fiat Chrysler Automobiles, according to Baldwin & Flak of REUTERS. After "years of under achievement, the world’s most successful motor racing team has been on the podium" in each of the first five grands prix this season. The turnaround gives FCA CEO Sergio Marchionne "a lift as he seeks to convince investors" that Ferrari merits a valuation of at least €10B ($11.1B) -- at the top end or even above a range of €4B ($4.45B)-€10B floated by bankers for the "luxury carmaker and its prancing horse logo." Manfredi Ricca, head of brand consulting group Interbrand's Italian office, said that F1 symbolizes "what Ferrari stands for." Ricca: "A successful Formula 1 team adds some incremental value to the Ferrari brand and the brand is going to be a key component of Ferrari's valuation in the IPO. It's the most effective advertising." Marchionne said that he plans to sell around 10% of the firm in an initial public offering later this year. He recognizes the team's "importance to the brand's DNA." Marchionne: "Ferrari defines itself in terms of its racing ability. When it loses, the house doesn't feel good" (REUTERS, 5/20).
