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LUXURY

Ferrari workers to get €5,000 Christmas bonus

Staff at Ferrari will get a treat in their December pay packet – a €5,000 Christmas bonus.

Ferrari workers to get €5,000 Christmas bonus
Ferrari workers are set to receive a €5,000 Christmas bonus. Photo: NaotakeMurayama

The bonus was announced by Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne after shareholders approved the spin-off of the company’s luxury sports car unit, which is expected to take place in January.

Some 2,850 people work for Ferrari, which is based in the northern Italian town of Maranello.

The bonus is a gift to thank them for their work in making the coveted cars as well as to celebrate a successful year.

Ferrari is the biggest and most glamourous name in Formula One racing and the team's logo of a black stallion against a red background is instantly recognised by motorsport fans around the world.

FCA said on Thursday it “will transfer all of the shares held by it in Ferrari N.V. to FE Interim B.V,” a newly-formed Dutch company which will issue shares to FCA's shareholders in January 2016.

Marchionne told shareholders that the spin-off was “the start of a new chapter”.

It would “allow Ferrari to better realise its potential for future growth and follow its own strategies with greater financial and operational independence,” he said.

He said a separation of other brands from the group in the short term was “highly improbable”.

The group sold 10 percent of the legendary carmaker in an initial public offering in October, which valued Ferrari at $10.6 billion (€10 billion).

Fiat Chrysler owned 90 percent of Ferrari before that flotation.

With a heavy debt level and a plan to invest $48 billion to expand its total worldwide sales to seven million vehicles per year, the spin-off is aimed at strengthening Fiat Chrysler's finances. 

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ECONOMY

Fiat promises no job cuts in return for state aid: report

Fiat Chrysler has agreed to the conditions laid down for a state-backed €6.3 billion euro loan, including a promise not to relocate or cut jobs, Italy's Sole 24 Ore daily said Sunday.

Fiat promises no job cuts in return for state aid: report
Robots manufactured by Comau are pictured on the assembly line of the Fiat 500 BEV Battery Electric Vehicle. Photo: AFP

The state auditor has approved the guarantee, but it still needs to be signed off on by the economy ministry, the paper said.

The request for state support on such a large loan has proved controversial, particularly with the company's corporate headquarters in Amsterdam.

FCA — which directly employs close to 55,000 people in Italy — has said the loan is essential to help the group's Italy operations and the whole industry to weather the crisis triggered by the coronavirus pandemic.

The company will commit to investing 5.2 billion euro in Italy on new and existing projects, and up to 1.2 billion euro on its 1,400 or so foreign suppliers, said Sole 24 Ore, Italy's financial newspaper.

 

FCA will also pledge not to cut any jobs before 2023.

The loan will be funded by Italy's largest commercial bank Intesa San Paolo and 80 percent guaranteed by export credit agency SACE, the daily said.

The government has said FCA would face sanctions if it failed to stick to the conditions laid down for loan. Sole 24 Ore said the fine for breaking the agreement could be in the region of 500 million euros.

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