Fiat Chrysler Automobiles announces it will spin off sports car maker Ferrari SpA

Fiat Chrysler Automobiles said Wednesday it will spin off sports car maker Ferrari into a separate company.

The company said in a statement that spinning off Ferrari was part of a plan to raise capital to support the new merged carmakers' future growth.

Fiat Chrysler CEO Sergio Marchionne said in a statement that it was "proper that we pursue separate paths for FCA and Ferrari" following the completion of the merger of Chrysler and Fiat with a listing on the New York Stock Exchange earlier this month.

A Ferrari spinoff has long been speculated as a way to unlock value in Ferrari. The move comes about two months after an awkward management transition at Ferrari that saw the longtime chairman Luca di Montezemolo resign after a public spat with Marchionne.