The Financial Times published the following article, written by James Mackintosh, on 9 Jan 2003:

Ferrari will only be able to put its latest Maserati design into production if the Fiat-controlled sports car maker can raise enough money in its planned initial public offering later this year.

The Kubang

Luca di Montezemolo, chief executive, said Ferrari had yet to decide whether there was sufficient demand for a car based on its Kubang car/SUV crossover design unveiled this week at the Detroit auto show. But, if Maserati was to put the vehicle into production, it would have to raise the cash from the IPO.

"What we are looking for is money to increase the volumes of Maserati," Mr Montezemolo said. He did not say how much would be needed but has recently said he expects to boost production for Ferrari and Maserati in the second half of the decade when his company begins a strong push into China and Russia.

Maserati almost doubled sales last year to 3,300 - slightly behind its target of 3,500 - thanks to its return to the US market after an 11-year absence.

It already has enough funds to produce one new vehicle, a four-door saloon to compete with the Mercedes-Benz S Class. The model is expected to be particularly popular in Japan and Asia.

Montezemolo at the Detroit Show

Mr Montezemolo said the company's recent talks with Audi, the German luxury carmaker owned by Volkswagen, were aimed at reducing the need for cash by sharing technology development costs.

"One of the reasons we are talking to suppliers and potential echnology partners is that we need to share investments," he said. "If we do everything alone we can transfer investment only into a low number of cars."

The IPO is scheduled for this summer but Mr Montezemolo said the timing would depend on the shareholders: Fiat, the Italian industrial group; Mediobanca, the investment bank; and the Ferrari family.

Mr Montezemolo said the main aim of the flotation would be to allow Mediobanca to recoup its investment.

"How much I want to raise is difficult to answer because the first objective is that Mediobanca has to come back from the investment they have done," he said. "Mediobanca has paid an important price, which in my opinion is not far from the right price."

Additional reporting by Fred Kapner in Milan

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