• Market Crumbs

Ferrari CEO Abruptly Retires

Image via Alessio Montemurro on Unsplash

Louis Camilleri spent a large part of his career in the tobacco industry, serving as CEO of Philip Morris, which is now Altria Group, and CEO of Philip Morris International in the early 2000's.

Following the resignation of Sergio Marchionne for health reasons in July 2018, Camilleri was named as the CEO of Ferrari, which has an advertising partnership with Philip Morris dating back to the 1980's. Under Camilleri's tenure, the luxury car manufacturer has seen its shares gain more than 50%.

Ferrari made the shocking announcement on Friday that Camilleri would step down for personal reasons with immediate effect from his position as CEO and member of the board of directors. Camilleri was hospitalized for several weeks recently for COVID-19, but that wasn't the reason for his retirement, according to Reuters.

Philip Morris International also announced that Camilleri would retire as Chairman of the Board for personal reasons with immediate effect, completing a 40-year career at the tobacco giant.

"Ferrari has been a part of my life and serving as its Chief Executive has been a great privilege," Camilleri said in a statement. "My admiration for the extraordinary men and women of Maranello and for the passion and dedication they apply to everything they do, knows no bounds. I'm proud of the Company's numerous achievements since 2018 and know that Ferrari’s best years are still to come."

Ferrari Executive Chairman John Elkann will assume the role as CEO on an interim basis until the Ferrari Board of Directors finds a permanent replacement. Elkann was born into the prominent Agnelli family and was appointed to Fiat's board of directors at the age of 21. Elkann also serves as the chairman and CEO of Exor, which is the family's investment company and Ferrari's top shareholder.

With Ferrari having seen a boom in both its business and its share price under Camilleri's leadership, the company will have big shoes to fill as it finds a permanent replacement.

Leftover Crumbs

  • Affirm and Roblox postpone IPOs. Roblox and Affirm both announced they are postponing their planned IPOs as recent IPOs last week have the companies seeking higher valuations. Roblox told employees it will work with advisors to improve the IPO process to benefit employees and investors, according to Reuters. Roblox now intends to list early next year. Affirm also delayed its planned IPO to January at the earliest as the reason for the delay was not entirely clear. The WSJ reported the delay was partly a result of the initial returns of DoorDash and Airbnb causing Affirm to believe it can seek a higher valuation.

  • Virgin Galactic aborts mission. Virgin Galactic had to cut short a planned flight to the edge of space after the engine on its SpaceShipTwo Unity failed to ignite. "The ignition sequence for the rocket motor did not complete. Vehicle and crew are in great shape. We have several motors ready at Spaceport America. We will check the vehicle and be back to flight soon," Virgin Galactic tweeted.

  • AMC is running out of cash. AMC warned it may run out of cash by January as it obtained $100 million in financing from Mudrick Capital Management. "In the absence of additional liquidity, the Company anticipates that existing cash resources will be depleted during January 2021," AMC said. AMC also blamed the recent announcement by Warner Bros. that the company will simultaneously release all films next year on its HBO Max streaming service. "These challenges have been exacerbated by the announcement by Warner Bros. that its entire studio film slate for 2021 will move to simultaneous release, which may result in other studios adopting a similar strategy," AMC added.

  • Household net worth reaches new record high. The total net worth of Americans rose to a record $123.5 trillion at the end of the third quarter, according data released by the Federal Reserve. The total marks a 3.2% increase from the second quarter and 7.6% increase from the same period last year. During the third quarter, $2.8 trillion and $400 billion were added to the value of U.S. personal equity holdings and real estate, respectively.

  • Hyundai acquires Boston Dynamics stake. Hyundai Motor Group announced it will acquire an 80% stake in Boston Dynamics from SoftBank Group. The deal values Boston Dynamics, which is famous for its robotic dog videos, at $1.1 billion. SoftBank will retain ownership of the remaining 20% of Boston Dynamics through one of its affiliates. "We are delighted to have Boston Dynamics, a world leader in mobile robots, join the Hyundai team," Hyundai Motor Group chairman Euisun Chung said. "This transaction will unite capabilities of Hyundai Motor Group and Boston Dynamics to spearhead innovation in future mobility."