The Detroit News reports some investors are suggesting a way that Fiat can afford to buy the rest of Chrysler: sell Ferrari. We can hear the chorus of "No!" floating through the air, but here's the rationale, as offered by Bernstein Research analyst Max Warburton. Ferrari would probably sell for about $4 billion, which Fiat could use to buy the share of Chrysler it doesn't own, and pay down some of its debt. "We believe the logical way forward is to proceed with the much-discussed IPO (initial public offering) of Ferrari and use the proceeds to buy the rest of Chrysler. We believe a full Fiat-Chrysler combination is necessary, but also investable," Warburton said in a research report. He thinks it would cost $2 billion to buy the rest of Chrysler and the remaining money could be used to help Fiat fix itself.
Photo: The Associated Press