Informed industry sources have reported that Ferrari are planning to spin-off Maserati, back to Fiat, as the Maranello-based sportscar maker gears itself up for an impending stockmarket flotation.

"Hoping to improve its balance sheet, sports car maker Ferrari is expected to approve Monday the spin-off of its loss-making Maserati luxury sports car subsidiary to Fiat Group," reported reputable Automotive News Europe earlier this week.

A planned flotation of the Ferrari-Maserati Group in 2003 was ditched at the last moment when Fiat instead chose to offload a minority stake in the famous sportscar maker to a consortium of banks, led by Mediobanca, a financial institution which is regarded as being close to Fiat and the Agnelli family.

Mediobanca were then charged with preparing the Ferrari-Maserati Group for an IPO, while Fiat retained a 'buy back' option after the sale. Flotation plans however went quickly quiet as the auto market conditions were regarded as having  become unfavourable.

Ferrari 'bought' Maserati from its parent company Fiat, in 1999, for a sum of 15.4 million euros, and have subsequently pumped tens of millions into the Trident brand, as they set about rebuilding the ailing marque virtually from scratch. Fiat had themselves bought Maserati from Alejandro de Tomaso ten years earlier and had subsidised its losses during the 1990s.

After posting a 32 million euro profit in 2003, the Ferrari-Maserati Group slumped to a 57 million euro operating loss for the first nine months of last year, and although the continuing weakness of the dollar has hit Ferrari in their key US market, investing in Maserati's revival is believed to be the biggest hindrance to profits. Operating revenue though continued to rise, last year estimated at 1.5 billion euros, up just under 20 percent year-on-year.

Removing Maserati off their books would turn Ferrari into a highly profitable business once more, and swiftly boost the placement price for any impending IPO. Ferrari produced a record 4,900 cars last year and are presently breaking into several important new markets, including China and South America. They have also embarked on a new strategy of maximising the commercial value of 'Prancing Horse' brand name.
 

The first phase has seen several shops selling Ferrari merchandise being opened around Italy, while several marketing exercises are now being discussed, from Ferrari-branded computers to hotels.

Last month Scuderia Ferrari unilaterally agreed to sign an extension to the 'Concorde' agreement, which governs the distribution of Formula One monies, with the FIA and FOM. Causing some controversy, as they were alone among the F1 teams in agreeing to the extension, it is believed that they were offered highly favourable terms, which reputedly included a US$150 million 'signing on' fee.

Last year Maserati output rose by 60 percent year-on-year as the Trident marque closed right in on the psychologically-important 5,000 cars per year barrier. This was helped by strong market demand for the new Quattroporte saloon, which has won a whole string of awards since being launched at the Frankfurt IAA a year and a half ago. 2004 also saw Maserati get back to winning ways on the race tracks with their fearsome MC12 sportscar, while the Trident's 'bread and butter' Coupe and Spyder models were given a makeover, and an 'extreme' version, dubbed the GranSport, added to the line-up.

Now under the direction of one of the global auto industry's most regarded CEO's, Martin Leach, Maserati are targeting producing 10,000 cars per year, and believe they are firmly on their way to profitability.

Bringing Maserati back into the Fiat fold has given rise to speculation that a 'prestige brands' division, comprising of Alfa Romeo, Lancia and Maserati, could now be formed. This move could then offer Martin Leach the springboard to a bigger role within Fiat. Seasoned industry observers continually wonder how a figure of his stature and reputation can be satisfied remaining in charge of a marque as small as Maserati, a position which constantly gives rise to speculation that overshadowed Fiat Auto Division CEO Herbert Demel is set to be pushed aside.

The synergies of this possible new direction could lead to substantial technology sharing and cost savings, with Maserati already on record as being keen to parts share with Alfa Romeo. However it must be remembered that only recently a 'Ferrari-Maserati-Alfa Romeo' super group was being touted as the future direction.