Ferrari has had a tumultuous relationship with its former owner, the British carmaker Jaguar Land Rover.
Now the two companies have come together, with Ferrari saying it is building a $200 billion automotive company that will make cars for all.
In a joint statement on Thursday, Ferrari CEO Sergio Marchionne and Jaguar’s chairman and chief executive Peter Brabeck-Letmathe said they were launching the new company to make “an unprecedented leap forward” in car manufacturing.
They said the move would give them “more flexibility to innovate and build products for our customers around the world.”
Ferrari’s decision to launch a new business comes as the Italian carmaker grapples with a slump in sales as the U.K. prepares to leave the European Union, and with the company’s brand in a precarious position following the death of the late legendary boss, Art Deco founder Gianni Agnelli.
The company’s chief financial officer, Stefano Domenicali, resigned in January amid mounting controversy over a company newsletter in which he described himself as an “artistic genius.”
“This is an extraordinary day,” Marchionnese said in the statement.
“We are delighted to be a part of this historic project and its development.”
The announcement comes after the company announced it would be selling off its Ferrari brand in an attempt to make way for a new venture.
The company said it had made a bid for a stake in rival brand Jaguar Landrove, which it bought in 2009 for about $7 billion, but was blocked by the European Commission and British government.
Jaguar has been one of the world’s most successful carmakers in recent years, thanks to a fleet of supercars, sports cars, SUVs and luxury goods.
But the company has been struggling in recent months with a decline in sales in the U.
“We have a long-term commitment to Jaguar Landry and believe it is the right time to build a new company for the future of Jaguar Land Rovers,” Marchione said in a statement.
The new company, which will be called Jaguar Group F1, will have about 2,000 employees, according to the statement, which did not provide a financial figure for the new entity.
The announcement came a week after a report said Ferrari would pay about $200 million to buy the former British carmakers Jaguar Land & Rovers for about 50 percent of its current value.
The deal is expected to close in the third quarter.
Juan Fassbinder covers technology and business for Bloomberg News.
Follow him on Twitter at @jfassbitter.
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