| Author |
Message |
Dave328GTB (Hardtop)
Junior Member
Username: Hardtop
Post Number: 242
Registered: 1-2002
| | Posted on Wednesday, September 18, 2002 - 8:03 pm: | |
Being in business myself, there is something to be said for staying lean and within yourself. Ferrari has done that although not all lean years were good. In 1993 model year, they sold only 100 348's and a smaller number of Mondials in the US. In Ferrari's case, larger capacity would mean lower prices and more profits when a product is hot. However, exclusivity is a big part of Ferrari's appeal. Also, I'm not sure how many people would really be willing to put up with the quirks if the cars were as plentiful as, say, Porsches. As it is, there seems to be an oversupply of used 355 and 360 on the market now. I think increasing production could, in the long term, be detrimental to the marque businesswise. Unfortunately, Ferrari may come under the control of those who don't view it this way.
Dave |
Mitch Alsup (Mitch_alsup)
Junior Member
Username: Mitch_alsup
Post Number: 149
Registered: 4-2002
| | Posted on Wednesday, September 18, 2002 - 2:46 pm: | |
One can argue this both ways: If you have a multi-year waiting list you have one of two problems/issues A) insufficient capacity, or B) prices that are too low.
A) insufficient capacity: 3000 V8 + 1000 V12 per year. Ferrari has avoided bankrupcy and being a pawn in the games played by other major manufactures by not building so much capacity that it is unproffitable in the LEAN years. This also means that it cannot deliver enough cars in the FAT yeear. So be it, its a business model that keeps Ferrari in business for the long haul. {F1 being an entirely different business}.
B) prices are too low: Lets just see any other manufacture produce a Ferrari-like car at any volume level they want with 1) Ferrari quality intriors--virtually no plastic, 2) Ferrari-like engines--tone, Red Line, Power output levels, weight, positioning,... 3) PinninFarina-like styling, 4) ignoring of speed limiting devices (BMW, MB, japan-inc) gentalmens (155 MPH) agreements, and 5) ignoring of luxury tax/gas guzzling tax,..... in the design of the cars.
I know of several other industries with Ferrari-like business models; A) a couple of specialty watch manufactures ($50K each 2-4 years waits), B) telescopes (several years on the waiting list before you know if they are going to get to your position on that list or build different scopes)
{AstroPhysics for those interested). These guys seem to do quite well (thank you very much) with their business models while others enter and leave those buisness all the time. |
TomD (Tifosi)
Intermediate Member
Username: Tifosi
Post Number: 1334
Registered: 9-2001
| | Posted on Wednesday, September 18, 2002 - 10:47 am: | |
I think ecclestone started out as a car dealer if my memory serves me correctly |
ross koller (Ross)
Member
Username: Ross
Post Number: 308
Registered: 3-2002
| | Posted on Wednesday, September 18, 2002 - 10:34 am: | |
article in planet f1 that ecclestone is strongly considering buying the remaining shares in ferrari. but he also made a strange comment that he wondered if they would sell them to him even though he would not want to spend the kind of money they presently spend on f1.....
anyway, he has the money and fiat need it so i think its likely it goes through. get ready for hefty price increases for future models...... |
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