End of an era at Ferrari: Montezemolo resigns after 23 years

Montezemolo’s resignation comes as the Ferrari Formula One team endures a slump in performance.

MANILA, Philippines–Ferrari chair Luca di Montezemolo, who has headed the company for the past 23 years, recently announced his resignation from the company. Sergio Marchionne, the CEO of Fiat Chrysler Automobiles, Ferrari’s majority owner, will take over in October.

The move was announced as a preparation for the listing of Fiat Chrysler Automobile Group on Wall Street.

Reports say that Montezemolo clashed with Marchionne over the Fiat boss’ plans to integrate Ferrari’s technology into Fiat’s premium cars. This led some pundits to create drawings of a Ferrari minivan and SUV for the American market. The ex-chair himself jokingly said that he may head to Detroit to lead a car company there.

Montezemolo led the ascent of the Italian car manufacturer up to the very top of the luxury car industry. Ferrari manufactures extremely high-performance cars that are usually sold out even before production begins.

The road car operations are a record high, with revenues of 1.349 billion euros in the first half of 2013. Ferrari is perhaps the only car company that can record an increase in revenues and profit while cutting production—3,631 cars in the first half 2014, 3.6 percent fewer than the same period in 2013.

The road car division produced a string of hit vehicles under Montezemolo, starting with the F360 Modena mid-engined sports car. The line continued with the F430 and the 458 Italia. The 599 GTB Fiorano, F12 Berlinetta and LaFerrari were all met with critical acclaim and sell-out production runs.

He was hired by Enzo Ferrari himself to head the Formula One team in 1973. They propelled Niki Lauda to a World Championship in 1975.

Montezemolo’s resignation comes as the Ferrari Formula One team endures a slump in performance, with no victories yet in 2014.

The announcement was made in a press room adjacent to the Ferrari Museum in Maranello, Italy. He thanked those responsible for Ferrari’s success, including Jean Todt and Michael Schumacher, architects of Ferrari F1’s success in the 1990s and early 2000s.

Montezemolo said: “Ferrari will have an important role to play within the FCA Group in the upcoming flotation on Wall Street. This will open up a new and different phase which I feel should be spearheaded by the CEO of the Group. This is the end of an era and so I have decided to leave my position as chairman after almost 23 marvelous and unforgettable years in addition to those spent at Enzo Ferrari’s side in the 1970s. But my thoughts go also to our fans who have always supported us with great enthusiasm especially through the Scuderia’s most difficult moments.”

Marchionne takes over after what Montezemolo describes as his “last day of school,” on Oct. 13.