Brent Snavely

Detroit Free Press

Ferrari will become a standalone company by Tuesday, ending Fiat Chrysler Automobiles' major stake that dates back to 1969 when Fiat bought half of the financially struggling racing and sports car company.

The separation won't exactly herald a new direction, or even new leadership. It's part of Fiat Chrysler CEO and Ferrari Chairman Sergio Marchionne's plan to elevate Ferrari's profile as a global luxury goods company so that Wall Street can more accurately value and evaluate the company.

Marchionne's pitch to Wall Street is that Ferrari's financial performance is less tied to the automotive industry's fluctuations because of the company's small production volume as well as its high transaction prices and profit margins. Marchionne believes the company should be valued more like luxury brands Burberry, Hermes or Tiffany.

"I think it would be really a crying shame if we did not find a way to extract additional value from a brand as unique as Ferrari," Marchionne said in October. "Without impacting on the exclusivity and the uniqueness of the car brand, we need to find a way to build business around this to leverage it and use it properly."

On Tuesday, Fiat Chrysler will transfer 80% of the shares in Ferrari it still owns to its investors. FCA shareholders will receive one share of Ferrari stock for every 10 shares of stock they hold in FCA and will get one special voting share for every 10 shares they own in Fiat Chrysler. The scheme is designed to reward shareholders who have been loyal to Fiat and Fiat Chrysler.

Marchionne first announced plans separate Ferrari from Fiat Chrysler in October 2014 as a way to raise money to fund the automaker's ambitious five-year strategic plan. In October, Fiat Chrysler sold a 10% stake in Ferrari on the New York Stock Exchange, raising $893 million.

Ferrari's stock hasn't performed as well as hoped. Ferrari's shares hit a high of $56.75 on Oct. 22 but have since dropped to $48.45 as of Thursday afternoon.

While Ferrari will become an independent company, traded on both the New York and Milan stock exchanges, Marchionne and the Agnelli family will continue to wield a great deal of influence over Ferrari.

Marchionne plans to boost Ferrari's annual production from about 7,255 cars in 2014 to more than 9,000 per year, expand its retails sales of apparel and restore Ferrari's racing prowess.

The company also is building a second theme park called FerrariLand that is expected to open at the PortAventura resort near Barcelona in Spain in 2016. It joins FerrariWorld, which opened in Abu Dhabi in 2010. Eventually, Ferrari plans to open theme parks in each of the main geographic areas it does business, including North America and Asia.

With prices that can range from about $200,000 for the Ferrari California T to more than $1 million for the Ferrari LaFerrari, the company is often compared to automotive brands such as Aston Martin, Bentley, Bugatti, Lamborghini, and McLaren.

"A luxury brand is also able to combine a strong global recognition with the perception of scarcity and exclusivity ... Ferrari, in our view, embeds all of these characteristics but stands out in particular for its true rarity and exclusivity perception, where it ranks very favorably versus most other luxury goods brands," Morgan Stanley analyst Adam Jonas said in a report in December.

Ferrari, founded in 1947 by Enzo Ferrari, was created to be a racing powerhouse. Making cars the public could buy was viewed as a means to fund the racing efforts. But by the 1960s, Ferrari was in financial trouble and Fiat outmaneuvered Ford to become an investor. In 1988, after Enzo Ferrari died, at the age of 90, Fiat's share rose to 90%.

Based in Maranello, Italy, Ferrari is more than just a car company. It is central to Italy's culture and pride. Stories about Ferrari's performance on the racetrack are typically among the top stories of the day.

Over the years, Ferrari has won more titles and awards than any other brand in Formula 1 racing history. It has 223 Grand Prix wins, 16 Constructor Championships, and 15 Drivers Championships, according to Jonas.

However, Ferrari has not won a Formula 1 driver championship since 2007, largely due to the emergence of competitive teams from Red Bull and Mercedes-Benz. Marchionne has said repeatedly that Ferrari's commitment to racing will not waver.