Fiat Chrysler announced Wednesday it's spinning off its famous luxury car brand Ferrari into an independent company.
Fiat Chrysler announced Wednesday it's spinning off its famous luxury car brand Ferrari into an independent company — listing 10 percent of the stock on the market and distributing the remaining 90 percent to its shareholders. (Video via Ferrari)
CNBC's Phil LeBeau reports the value of the entire company is around $6 billion.
Fiat Chrysler's CEO, Sergio Marchionne, said in a statement, "As we move forward to secure the 2014-2018 Business Plan … it is proper that we pursue separate paths for FCA and Ferrari."
"If you are Sergio Marchionne and the Fiat board, you are looking at Ferrari and saying, 'This is our most valuable asset that we can spin off to raise capital.'"
The news has also led to a humongous boost in Fiat Chrysler's share price, jumping almost 19 percent to $11.56 per share at one point Wednesday.
This video includes images from Getty Images.