Ferrari Spinoff Now Complete: Why You Shouldn't Worry About the Fiat Chrysler Separation

January 3, 2016, will go down in history as the day when Ferrari completely separated from Fiat, with the Prancing Horse now being fully listed as a standalone company on both the New York Stock Exchange and Milan's Borsa Italiana.

While certain Ferraristi might be worried about the move, we want to explain why there's no need to fret over this.

First of all, the move doesn't surprise those following the industry. The separation plan started in late 2014, when Fiat Chrysler Automobiles (FCA) made the spinoff decision public. About one year later, Ferrari made its Initial Public Offering (IPO), but only about 10 percent of the company was listed last fall.

While 10 percent of the automaker is still owned by Piero Ferrari, Enzo's son, the remaining 80 percent were destined for exiting FCA shareholders.

This brings us to the present day, with FCA having delivered on its promise to offer the remaining 80 percent to its shareholders. As a result, FCA shareholders received one common Ferrari share for every ten FCA common shares.

Also, those who hold FCA MCS units (Mandatory Convertible Securities) received 0.77369 common Ferrari shares for each MCS unit of $100 in notional amount.

Just as important is the fact that the puppet masters who control the company remain largely the same.

The Agnelli Family (founders of Fiat) remain Ferrari's largest shareholder, with 24 percent of the stock.

Nevertheless, since investors with a rich history receive special privileges, the Agnelli family, together with Piero Ferrari, hold just under 49 percent of voting rights. The two sides ensured any potential hostile takeover is prevented by signing a special agreement back in December last year.

While Ferrari's operations continue to sit at a stratospheric level, we can't say the same about the stock exchange situation. The New York Stock Exchange saw the share price remaining in the $52 area dictated by the IPO, but this has now dropped to $48, which means the company is valued at $9.1 billion (EUR 8.4 million at the current exchange rate).

As for FCA shares, their 2016 price (post-spinoff) sits more than 30 percent below the value seen at the end of 2015.

One of the most important financial questions for Ferrari has to do with the company's annual sales volume. With the carmaker making the transition from the more traditional way of former helm man Luca di Montezemolo to the picture we currently see, which was painted by FCA CEO Sergio Marchionne, it is expected to expand its annual sales volume from 7,000 to 10,000 units.

Those of you who enjoy indulging themselves in the complete details of the spinoff are invited to check out the press release below.

P.S.: Here's a more detailed story on why Ferrari's stock exchange listing is a positive step.

Nissan Kicks Crossover into Production Phase

Just when we thought the automotive industry had all the crossovers it needed - and then some - Nissan announced it's launching a new one. It'll be called Kicks and will be based on the concept car of the same name.

Nissan CEO Carlos Ghosn said the new model will be sold globally, starting with Latin America, where it will debut later this year. The Japanese company is investing $192 million in its Resende, Brazil plant to manufacture the Kicks. In addition, 600 new jobs will be created at the facility, which was inaugurated in 2014 and currently produces the March and Versa models.

"With Nissan Kicks, we will go beyond the obvious to pack a punch with a strong design statement and the performance that our customers crave," said Jose Valls, chairman of Nissan Latin America.

Although very athletic and giving off a 2nd-generation-Juke vibe, we wouldn't necessarily call the Kicks "a strong design statement". Especially when we consider how many times production models are toned down from their concept versions. And even more so when we consider that, since the Juke, Nissan hasn't been so bold in design.

But we digress. Back to the Kicks, which was unveiled, in concept form, at the 2014 Sao Paulo Motor Show. It derived from yet another concept: the Extrem, originally shown in Sao Paulo in 2012. Although the mass production model will be sold all over the world, the Kicks concept was created with the Brazilian market in mind.

"When our team from Nissan Brazil team collaborated with our colleagues in Japan to create the Kicks concept vehicle, which was inspired by our country and culture, the result was extraordinary," said Francois Dossa, president of Nissan Brazil.

It was actually a three-way effort, with Nissan Design America, based in San Diego, also pitching in. All three design teams are also involved in developing the production model.

2016 Tesla New Cars

Details of the new and updated Tesla models launching in Australia in 2015.

Tesla Model X – Q4

The first SUV from the electric car brand will commence local deliveries in the latter part of 2016.

The Tesla Model X has already been revealed internationally, and the start-up rightly claims this SUV will be the quickest car of its type on the planet, with the P90D model claiming a 0-100km/h time of as little as 3.4 seconds with the Ludicrous Mode upgrade.

It won’t be the only model offered, with a less performance-oriented version – the 90D – also set to be offered initially. Range for the 90D is set to be claimed at 470km for the most battery-efficient model.

Those model names are familiar from the Model S, and the X shares the same platform and battery/motor layout as that car. Aside from the SUV-style body, the Model X introduces the Falcon Wing doors and on the optioned-up Signature Edition models, 22-inch wheels are fitted.

Being an SUV there is extra practicality to call upon, with seven forward-facing seats offering room for “seven adults and all of their gear”.

Pricing isn’t yet confirmed for Australia, though it is likely to carry a premium over the Model S. Stay tuned for our launch review of the car in the third quarter of 2016.

2016 Toyota New Cars

Details of the new and updated Toyota models launching in Australia in 2016.

Prius — March

Industry top-seller Toyota updated a staggering 13 models in 2015. Thus, it has launched, replaced or renewed vehicles representing three-quarters of its sales volume.

Obviously, 2016 will not be quite so busy.

The early headliner is the fourth-generation Toyota Prius hybrid due in March. Read our quick review from Japan here. 

The new Prius is 4540mm long, 1760mm wide and 1470mm tall, making it 60mm longer than the third-generation hybrid hatch and 15mm wider. Although the new Prius is the first vehicle to use the Toyota New Global Architecture (TNGA) component set, the new car’s wheelbase remains unchanged at 2700mm.

Toyota has confirmed that the fourth-gen Prius will continue with a nickel-metal hydride battery, albeit one that is “smaller, more energy-dense” than previous editions.

The company has also replaced the current car’s torsion beam rear suspension for a new double-wishbone system. Thanks to the smaller battery pack and new rear suspension, boot space is said to be improved.

Fuel economy, at least under EU testing, is said be improved by 18 percent. By our calculations that see the car’s EU consumption figure drop from 3.9L/100km to 3.2L/100km.

The new car’s interior will be available in either cool grey or black, and vision out the front, sides and back is reportedly improved.

Available safety tech will include adaptive cruise control, pedestrian detection, pre-collision braking, lane departure warning with steering wheel alerts, and automatic high-beam control.

70-Series LandCruiser — October

The venerable Toyota 70-Series LandCruiser will get an update in late 2016 that is intended to bring the old workhorse, and fleet-favourite, up to five-star ANCAP standards. This ensures the old beast’s future for some time yet.

In addition to their currently standard driver and passenger front airbags, 70 Series single-cab variants will gain side curtain and driver’s knee airbags, taking the count to five.

All 70 Series body styles – single- and dual-cab, wagon and troop carrier – will also be equipped with electronic stability control, brake assist and cruise control.

Reflecting Australia’s position as one of the world’s dominant markets for the old 70, the global development program considers us it lead market. Engineering continues.

Extras

The production version of Toyota’s C-HR baby SUV concept will make its world premiere at the start of March in Geneva, giving Toyota a vital rival to the likes of the Mazda CX-3.

Toyota Australia understandably has its hand up for the car, and while nothing is concrete, the massive sales upside in what is a booming segment should ensure it arrives here. However, it might miss out on a 2016 launch and come around Q1, 2017 instead.

2016 Volvo New Cars

Details of the new and updated Volvo Cars models launching in Australia in 2016.

XC90 R-Design — Q1

The R-Design version of the very well-received all-new Volvo XC90 should finally get here at the end of Q1, 2016 — following the new version’s local launch in Inscription and Momentum spec levels in August, 2015.

The R-Design will be available across all three XC90 engine options — the 165kW/470Nm D5, the 235kW/400Nm T6 and the 300kW/640Nm T8 petrol-electric hybrid.

Local pricing is expected to be $97,950, $101,950 and $121,950 plus on-road costs respectively ($1000 higher than an inscription D5 or T6 variant).

The R-Design’s styling changes including a revised grille, new-look front spoiler, “silk metal” window trim surround, dual tail-pipes, silver look roof rails and side-mirror caps in matte silver. Wheels will be 20-inch wheels as standard,

The interior is said to feature sports seats and a steering wheel trimmed in Nubuck perforated leather, while “special R-Design details” including a unique shift knob, floor mats and illuminated tread plates are also offered. The key to the car is also different to the standard models, finished in “exclusive R-Design leather”.

A tablet-style touchscreen media unit and 12.3-inch digital driver display are offered as standard on the R-Design, too.

XC90 T8 — Q2/Q3

The Volvo XC90 range will grow to include the T8 twin-engine plug-in hybrid variant around July, exclusively in R-Design guise and priced at $122,95 plus on-road costs.

The T8 ‘Twin Engine’ powertrain combines the car’s twin-charged T6 petrol engine with a 60kW electric motor for peak outputs of around 300kW and 640Nm.

Volvo claims average CO2 emissions of 49 grams per kilometre. Fuel consumption on the combined cycle should fall around 2.5L/100km. At the push of a button the driver can switch to silent and zero emission driving on pure electric power, where the range will be around 40km under careful driving.

A series of battery cells runs along the car’s Scalable Product Architecture — Volvo’s platform that premieres under the XC90 and will be modulated to fit other future models over the coming years.

V40/V40 Cross Country update — Q4

The Volvo V40 small hatch and its Cross Country crossover spinoff (current model pictured) will get an update around August, to tide it over until a brand new one based on the company’s CMA modular Scalable Architecture premieres as early as 2017.

This update to Volvo’s answer to the Mercedes-Benz A-Class and GLA models is likely to see the addition of some equipment. It will come less than a year after the company added a pair of new entry-level engines and enhanced specification across the range.

Thanks to strong campaign pricing over the past few month, sale of the V40 have spiked. They’re up almost 25 per cent this year to 1083, making it Volvo’s second top-seller after the XC60 (1624).

Its volume is about half the BMW 1 Series, one-third of the A-Class and around one-fifth that of the Audi A3 segment leader. Meantime the V40 Cross Country has managed a smaller 362 units YTD.

S90 — Q4

The final piece in the Volvo puzzle for 2016 will be the gorgeous S90 sedan, set for launch here around the fourth quarter (though Volvo Cars Australia has previously said it could come here as early as August).

The S90 follows in the wheel tracks of the XC90, which marked the beginning of Volvo’s rebirth as a top-shelf on the back of a $15 billion dollar investment from its new parent company, China’s Geely.

The same minimalist Scandinavian styling dominates inside and out, while underneath lies the Swedish carmaker’s new Scaleable Platform Architecture. Buyers will find the same powertrains and eight-speed automatic transmission that motivate the XC90, led by the T8 PHEV.

The S90 will also feature Volvo’s Pilot Assist semi-autonomous driving technology, designed to keep the vehicle inside its lane at speeds up to 130km/h. A new day/night extension of Volvo’s City Safety collision avoidance system is also featured. In Australia, as a recent announcement revealed, this will include kangaroos.

The interior will be a familiar space for buyers that have already experienced the XC90, with the exterior’s minimalist themes continuing into the cabin.

It is expected that Volvo will position the new sedan as a rival to the BMW 5 Series and Mercedes-Benz E-Class.

Ford Will Recall Almost 10,000 Cars in the USA

Ford has announced two separate recalls in the USA, targeting almost 10,000 cars.

The first of them is aimed at specific Ford models made between January 11, 2012, and October 14, 2013, and affects around 9,017 cars, Autoblog reports.

This recall targets the engine wiring harness of certain Escape and Focus ST cars, which may not have enough compression on the wires in the loom. In extreme cases, the absolute pressure sensor in the intake manifold could send wrong signals to the ECU and make the engine stall, or reduce its power. Other potential effects include the illumination of the engine malfunction light in the dash or hesitation on acceleration.

Ford will contact the owners of the affected vehicles and the recall will begin on January 4, 2016. So far, no accidents related to this issue have been reported. Dealers have been instructed to replace the wiring harnesses on those cars.

This isn’t the first wiring recall for the Ford Focus ST in the USA, nor for the Ford Escape. Around 160,000 vehicles were recalled starting October 2014 for a similar issue. Some of the cars were sold in Canada and Mexico, and those were recalled as well.

According to a story from Automotive News, this is the eleventh time the MY 2013 Ford Escape is called back to dealers. A Ford spokesperson revealed to the publication that no single Escape is affected by all the 11 recalls mentioned.

The second callback issued by the Blue Oval is aimed at only 868 vehicles but affects more models. This particular action targets the 2013 Model Year of the Ford Explorer, Taurus, Taurus Police Interceptor, Explorer Police Utility, Flex, Lincoln MKT, and Lincoln MKS.

The owners of the affected cars will be contacted by Ford dealers to schedule a service appointment to replace some parts of the fuel delivery system. The company has done some research and discovered that the fuel delivery module could crack in a worst case scenario.

2016 Suzuki New Cars

Details of the new and updated Suzuki models launching in Australia in 2016.

Vitara Turbo — April

Suzuki’s sales in Australia have bounced back in 2015, up 11 per cent. 2016 is shaping up even better. 

April will see the Japanese company launch a new version of its most interesting new model, the reborn Vitara, with a new turbocharged engine. 

Marketed in Europe as the Vitara S, the Vitara Turbo’s 1.4-litre four-cylinder turbocharged petrol engine produces 103kW/220Nm — a 17kW/64Nm advantage over the current 1.6-litre four-cylinder naturally aspirated petrol.

Suzuki Australia says the Vitara Turbo will be available in front- and all-wheel drive, and will become the flagship in the line-up, replacing the RT-X.

Suzuki hasn’t confirmed final pricing and specifications for the Vitara Turbo at this stage. The outgoing 1.6 RT-X is available exclusively with AWD from $31,990 plus on-road costs.

The Vitara RT-S with the existing 1.6-litre engine will continue as the entry point to the range, retaining its $22,990 drive-away pricing.

Additionally, all Vitara models will come standard with Apple CarPlay and Android Auto from January, increasing the value further.

Baleno — potentially Q3

The reborn Suzuki Baleno could come to Australia around September 2016, expanding the company’s light car line-up — playing to its strengths.

Suzuki Australia is currently working through the business case for our market. Given it will come out of India, the odds of sharp pricing seem good.

Revealed in Frankfurt last September, the five-seat Baleno is 3995mm long, about 150mm (half a foot) longer than aSwift. But boot space is rated at 355 litres with the rear seats up, more than 50 per cent greater.

There are two engines globally, headlined by a new unit called the 1.0-litre Boosterjet. This three-cylinder turbocharged direct-injection petrol engine develops 82kW/170Nm and can be paired with either a five-speed manual or six-speed automatic.

The Baleno will also be available with a 1.2-litre four-cylinder motor that makes 66kW of power and 120Nm of torque, and can be had with either a five-speed manual or CVT.

Beneath the Baleno’s “liquid flow” skin, the city hatch is based on a new Suzuki platform that’s said to increase rigidity by 10 percent and reduce weight by 15 percent compared to the company’s current offerings.

Features available on the new Baleno include xenon headlights, LED driving lights and tail-lights, climate control air-conditioning, radar-guided adaptive cruise control, driver adjustable speed limiter, and a 7.0-inch touchscreen infotainment system that’s compatible with Apple CarPlay/Android Auto.

Suzuki Ignis — Q4

The return of Suzuki nameplates from the 1990s (Sierra, Vitara, Baleno…) could continue in the final quarter of 2016 with the potential launch of the new Ignis.

Based on the Suzuki iM-4 concept revealed at the 2015 Geneva motor show, the all-new Ignis debuts cool styling that follows the trend set by the newly launched Vitara.

At 3693 millimetres long, the little Ignis is barely larger than a Celerio, while its tallboy design is somewhat reminiscent of the original Sierras.

Expect the 1.0-litre directly-injected turbocharged petrol Boosterjet engine to appear in the Ignis.

The interior images show a new design trend for Suzuki with a Mercedes-Benz-esque floating screen atop the dashboard and Vitara-style changeable colour panels for the dashboard.

The Australian Ignis business case is being worked through alongside the Baleno, though the Ignis looks set to be imported from Japan.

Should both of these cars arrive, Suzuki will have four models in the Micro/Light segment, and three in the small SUV market.

Extras

Suzuki Kizashi stocks are understood to be sufficient to see the company through to about the middle of 2016, but beyond that its future is in some doubt. The cpmpany has only sold 119 this year — giving it just 0.3 per cent market share.