Italy’s luxury car manufacturer villa Savoye is selling some of the assets it owns to help pay for a restructuring plan, the country’s carmaker said on Wednesday.
The company said it would sell some of those assets to its partner carmaker Maranello, which is selling its shares.
“We want to sell assets that are not only not profitable but that have no long-term value,” Savoyo CEO Alberto Mazzanti told reporters.
The plan aims to cut costs by selling off a majority stake in the company’s parent company, and its shareholding in Maranellos luxury brands such as the Versace and Polo brands.
The carmaker’s plans have caused alarm among Italian lawmakers and investors, with many worrying that it is using its vast wealth to fund a lavish lifestyle for the executives who run the company.
“The problem is that we have not had a clear answer on the financial condition of the company,” parliamentarian Matteo Salvini told the Agence France-Presse news agency.
“And what we have seen is a lot of excesses that don’t appear to be sustainable.”
Savoyo, which has been making cars since 1959, has been on a buying spree, selling off assets in Italy, the US, South Korea and France.
Its share price is up nearly 15 per cent in the past year and is up around 30 per cent since mid-2017.