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By Bloomberg

In the spinoff of Ferrari later this year, Fiat Chrysler Automobiles NV wants investors to see the company as more than just a carmaker.

“Ferrari has all the elements to be considered a luxury- good manufacturer,” Chief Executive Officer Sergio Marchionne said today at the Detroit auto show. “What we should do with the listing is to entirely develop that notion.”

Luxury-goods companies such as Prada SpA and Hermes International trade at more than 20 times earnings, while automakers are generally less than half that. Getting the most out of the Ferrari listing is critical to Marchionne’s plans to fund an 48 billion-euro ($57 billion) investment plan aimed at lifting deliveries 60 percent to 7 million cars by 2018.

Fiat Chrysler plans to spin off the maker of the 1 million- euro LaFerrari supercar by the end of this year. Selling a 10 percent holding in the first half is part of a plan to raise $5 billion.

The London-based automaker rose as much as 2.3 percent to 10.40 euros and was up 1.9 percent at 9:17 a.m. in Milan trading. The stock has climbed 45 percent since the merger of Fiat SpA with U.S. unit Chrysler in October, valuing the company at 13.1 billion euros.

Powerful Brand

Analysts have raised doubts about the Maranello, Italy- based unit’s prospects of being rated as a luxury-goods company because of the higher costs of developing and manufacturing high-performance vehicles compared with making stylish handbags. Credit Suisse estimated Ferrari’s market value at 5.8 billion euros, while BNP Paribas said the company could be worth as much as 10 billion euros.

Even as a pure carmaker Ferrari has more potential and could “technically” boost production to 10,000 vehicles from 7,000 cars a year now, Marchionne said today. Still, Ferrari will always keep production below demand to preserve exclusivity, he said.

Ferrari was named the world’s “most powerful” brand last year by consulting company Brand Finance, beating even Apple Inc. That kind of image will help Ferrari survive as a independent manufacturer, even in the auto industry where most luxury brands have sought shelter in larger groups like Volkswagen’s control of Bentley and Lamborghini.

“Ferrari is very strong and will manage to follow its way even alone,” Dieter Zetsche, CEO of Mercedes-Benz parent Daimler AG. “The spinoff from FCA won’t damage the future” of Ferrari.

After listing 10 percent of Ferrari in the U.S., Fiat Chrysler will distribute its remaining 80 percent of Ferrari to its own shareholders. Ferrari Vice Chairman Piero Ferrari owns the remaining 10 percent of the company. Along with the listing, Ferrari may sell bonds, said Marchionne, who is also Ferrari’s chairman.