When Alfa Romeo was to buy out Ferrari...

While discussing last weekend with people at Alfa in Arese, I came to learn that Alfa Romeo had expressed interest in buying out Ferrari, back in 1969.

This has been object of an exchange of letters between Alfa Romeo's President Giuseppe Luraghi and Enzo Ferrari., but it seems that Ferrari either preferred the Fiat solution or was compelled not to make public that offer .

Dr. Sala, then Sales Manager of Alfa, has passed those letters as illustration for an article in the next "Ferrarissima" issue due for December this year.

Has anyone ever heard of that? There's way too much litterature on Ferrari for a non-ferrarist to follow what's being published, so maybe something has already been written that I'm not aware of.

Any input welcome, as well as first reports on the Ferrarissima article when it willl be out.

I've never heard that! I eagerly await the article.

Stu Schaller

Just keep in mind that in corporate life, it is absolutely routine, when you hear that someone is in "play" to make inquiry. Either because you are genuinely interested in buying or to act as a spoiler in some way to a competitor or just to get data that may be useful in other contexts.

What would be interesting is if the Alfa-Enzo talks got beyond preliminary stages.

Yes, of course. I've not seen the papers, so we have to wait until it's published.

From what I understood, it was a serious intention from Luraghi, but at some point Ferrari just stopped replying until the Fiat deal was made public, and Luraghi incidentally referred later to that missed occasion.

Hi Patrick

I've heard something about Luraghi and Ferrari, at the time: Mr. Sabbatini, editor of italian magazine Autosprint wrote some piece of informations about this proposal.
Probably this proposal was unrealistic.

We need now to know something about the political and industrial situation in Italy at the end of the 60s. Giuseppe Luraghi was a great public manager, chief executive of Alfa Romeo, that was a company "a partecipazione Statale" (I am not able to translate this words: Alfa Romeo was under control of the Italian Ministry responsable for companies in which the State has a financial interest): probably Luraghi could make this proposal but the real financial and structural situation of Alfa Romeo wasn't on a level with this investment: just about a few years later Alfa Romeo went in a state of crisis. They have founded the Alfasud near Naples in 1967, that was quickly a bankruptcy project, Luraghi abandoned the company in 1972, new chief executive Massacesi realized an hard reorganization program (financial and industrial problems) and in 1984 Fiat became owner of the share capital of Alfa Romeo.

I hope I was able to explain.

I would LOVE to see all the correspondence between Alfa Romeo and Enzo Ferrari...especially the stuff from circa 1936-1937 when Alfa Corse took the racing efforts over from Scuderia Ferrari

Hi Gianni

If you can find a copy or the reference of what Sabbatini wrote...

I'm afraid I'm compelled to correct slightly your reconstruction of the Alfa history here.

Alfa was under public control since 1927 (from 1933 under IRI - Istituto per la Ricostruzione Industriale) after main shareholder , the Banca Nazionale di Credito, went bankrupt. Indeed the Alfasud project started in 1967 and eventually turned into a loss from financial point if view, but that was not yet the case before the Alfasud production started. Of course, the investment needed some years to earn any return, so none was expected until somewhere around 1974, when production would have been at full pace.

So, it's not yet relevant for the Ferrari buyout hypothesis.

Instead, thanks to the then up-to-date Arese plant, opened in 1963, Alfa Romeo was in the 1968-1972 years the only profitable Italian public company, and would thus have been theorically able to invest into Ferrari.

Luraghi, indeed a major manager, was dismissed in early 1974, when strong political interferences would have ordered that production of 70,000 car ayear had to be transferred to a new plant to be built in the area of a well known politician of the time, in the Avellino province. Luraghi refused that order with all his energy and was thus fired. He was first replaced by Guani (lasted 6 months), then Cortesi and only from the very late 70s, Massacesi.

Fiat took Alfa over on January 1st, 1987.

Originally posted by Patrick Italiano
Luraghi, indeed a major manager, was dismissed in early 1974, when strong political interferences would have ordered that production of 70,000 car ayear had to be transferred to a new plant to be built in the area of a well known politician of the time, in the Avellino province. Luraghi refused that order with all his energy and was thus fired.

The only politician of the time I can think of, from the Avellino province, is Ciriaco de Mita. Was it him then? I didn't think he already had that much power in the mid 70ies.

Interesting stuff, keep them coming

Originally posted by Mickey

The only politician of the time I can think of, from the Avellino province, is Ciriaco de Mita. Was it him then? I didn't think he already had that much power in the mid 70ies.

You got it!

That is also documented in Autosprint, January to April 1974. Sabattini had very a high opinion of Luraghi and they had also good relationship, so Luraghi sent several letters to Autosprint. Sabbatini used to publish many flaming articles, so one has to read that with critic distance, but it's still an excellent source.

So, what happened?
Did the article in Ferrarrisma show the letters?

Yes, they did.

Two letters, Luraghi to Ferrari and back, written afternath, where it appears that there were some misunderstanding between them at an early stage, Ferrari claiming he had understood Alfa wasn't interested (as from what is described, I humbly would not be sure...).

About the eventual outcome, Luraghi stresses he had a former pact with Fiat to drive the negociation together, Fiat at the end played alone and informed Alfa they had struck the deal for themselves.

Not sure about posting them for copyright issues :

A book devoted to politics and industry in Italy is “Agnelli: Fiat and the Network of Italian Power” by Alan Friedman, published in 1989. I doubt the book addresses the Alfa Romeo - Ferrari talks, but it does devote a chapter to the sale of Alfa Romeo to Fiat, and offers background on the control of Fiat.

Interesting indeed.

But I think it would surprise most people to learn that Enzo Ferrari was contemplating "a return to the good old days" when the Scuderia was the racing branch of Alfa Romeo ...

Originally posted by Mark Godfrey
A book devoted to politics and industry in Italy is “Agnelli: Fiat and the Network of Italian Power” by Alan Friedman, published in 1989. I doubt the book addresses the Alfa Romeo - Ferrari talks, but it does devote a chapter to the sale of Alfa Romeo to Fiat, and offers background on the control of Fiat.

This book is still quite easy to find. Try e-bay or amazon or half.com

Stu