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Branding
the
Prancing Horse
By John Arba |
When
Jack Nasser was President of the Ford Motor Company and before
his unceremonious dumping, he made the prediction that the costs
of new model development were so high, that by 2010 there would
only be five or six global car manufacturers in the world.
This, to me, was the genesis of perhaps the last great shake-up
in the motor industry, leading as it did to the creation of the
"premier" division, the expansion of the VAG Group, the
Rolls/Bentley fracas and the Porsche Cayenne.
Our beloved prancing pony, whilst in the fold of the FIAT group,
has had its own realignment and is slowly emerging as an
industrial force on its own. The recent Maserati experiment may
have been a failure by most MBA standards but it is not to be
dismissed if you take into account the framework in which
business is done in Italy.
 Italia
Bella is a land of xenophobia, in the best possible meaning of
that term. Italians are intensely and competitively proud of
their town, region and country. Local bar talk across the land
can quickly erupt into passionate arguments about which village
has the best cheese, the most flavorsome white asparagus, the
best wine and the cleanest water or even the best bread. When
you travel there, you soon understand that there is a pride with
just about everything they do and, on a national level, they are
intensely aware of what is often referred to as the “Made in
Italy” phenomenon.
This hunger for Italian products of course includes Ferrari,
once a small concern that today makes less than 6000 vehicles,
in an ever more competitive segment of the market for cars. How
on earth is this viable today and how can it continue? Firstly,
the culture of Ferrari is quite unique; you could, in some way,
say it is a giant version of the English manufacturer Morgan in
that normal accepted business practices do not apply.
On my first trip to Maranello in 1989, it was notable on a
number of points. Firstly, it was Sunday but the place was
abuzz. Every crevice that provided a view of the factory innards
seemed to have a queue of both locals and Ferrari pilgrims like
myself ready to seize whatever vantage they could to peer behind
the fabled green gates. There was a ready camaraderie amongst
the gathered throng to peer at the rows old cars ready to be
dispatched to the various corners of the globe. It was only
later that I realized that the cars there were largely unsold
and stockpiled awaiting buyers! In reality only the F40s were
sold.
The last time I was in Modena, albeit several years ago, it was
a different scene, the large holding yards had largely been
developed and the only place you could see cars hanging around
were at the side entrance where the F40s were stockpiled on my
previous trip. I had the pleasure of the Factory tour, down the
F50 line and the Selleria and Officina Meccanica and all the
other bladdy blah and then went across the road to Cavallino for
Lunch with a couple of apparatchiks.
 Over
the tortellini ala crema and the ubiquitous Lambrusco, we
discussed the Formula 1, how Schumacher had energized the place,
and the three main prongs to the Ferrari business; Formula 1,
Road Cars and Licensing.
These guys repeated to me over and over that they were an F1
company that made road cars. It was an inherent part of their
culture. The day would come soon however that F1, road car
production and Licensing would be equal contributors to the
Company bottom line. Ferrari was according to their research one
of the three most recognized brands in the world along with Coca
Cola and Marlboro and was the most searched term on the
Internet. In July this year for example it was fourth most
searched term on Google.
After lunch their PR Director at the time, Dott. Perfetti, gave
a nice selection of Memorabilia in his office and then summoned
an aid to take me to the Museum where I was to spend the
afternoon alone, it was a Monday, and in those days the Museum
was shut, but I could have a look around for as long as I liked!
 It
is obvious I think that a lot of the branding experiments that
have come from Maranello are perhaps less than tasteful and
perhaps alienating to die hard fans of the Cavallino, however,
such people are now in the minority. Most Ferrari customers
today know about Schumacher, recent F1 and the Enzo; they
acknowledge the grand history of the marque but have precious
little connection to it.
There is, of course, now added competition as well; everybody
from Aston Martin to Toyota is aware of the power of the Ferrari
brand and wants to spend time basking in the motorsport sun.
However ill considered some motorsport participants may be, they
should perhaps understand first that it is largely the history,
and not just last week’s successes, that makes Ferrari such an
aspirational brand.
Hand in hand with this is the expectation of the new Tifosi; can
Ferrari now afford to lose? Will the Schumacher era devotees
stay loyal to the company if Ferrari doesn’t continue to
triumph? In all likelihood it must be said that they will. The
combination of the name, the cars, the passion and Italy are
very strong indeed! I am, perhaps, just as interested in how a
company that makes a miniscule amount of cars in world terms can
continue to thrive and prosper whilst remaining exclusive and,
at the same time, remaining at the forefront of technological
innovation in the motor industry?
Obviously, the first tack would be to build more cars. The new
Dino project would fit the bill nicely here, but let’s face it,
it's not going to be numbers that will significantly provide
economies of scale and make Porsche envious! Even a strictly
small production number will likely double Ferrari's output and
bring with it the associated strains, both financially and at
the dealer level. Further, the exclusivity of Ferrari has
largely been able to be maintained by pushing prices up. Whilst
most manufacturers have maintained and in some cases reduced the
prices of their products, Ferrari's strategy has been to
increase them.
A lot of this can be possibly explained by the some of the
unique technology which, as a small scale producer, Ferrari have
largely been responsible for funding themselves. F1 gearboxes,
carbon brakes and the “Manettino” spring to mind.
I think that Ferrari should be the brains trust of the FIAT
group and that the DNA should be more out there in a tangible
way and not just for the sake of marketing. The whole F1 gearbox
think leaves me a bit cold in the way it was adopted as the
Selespeed and Cambiocorsa by Alfa Romeo and Maserati,
respectively.
In fact, one of the greatest motoring gaffes of recent times has
been the Quattroporte. I mean, what a sensuous lovely object,
but are people who are used to S Class Benzes and Audis going to
buy a Maserati with clunky gearbox? It was obvious from day one!
I knew it; you knew it; the dealers did too!
In reality though, if Ferrari is not to become some sort of
motoring equivalent of Disney with the associated Corse Clienti,
merchandising, shops, and maybe even theme parks, perhaps it
should look to its roots and take a leaf from the pages of its
own history.
 I
mean the factory heritage programme, for example, makes me very
cynical. Do you get the feeling like me that somewhere involved
in this is a grab for dollars? The FXX too: the race car with no
one to race! What is this about? Balancing the books? What about
rich people, all of a sudden, as development drivers? Perhaps
this is some sort of twisted interpretation of the Old Man's
philosophy regarding customer cars. There is not a lot of
passion to me in any of this nonsense.
I think the time is right for some positive changes that would
benefit all of Ferrari's loyal following and not just those with
the wherewithal to indulgence at whatever level. It would
require the FIAT group itself to get in on the act but,
especially now with so much hinging on the groups model plans
over the next couple of years, it is important to re-evaluate
the links with the past and realize what makes it so great.
Ferrari really should be earning revenues, and significant ones;
as the engineering heart and soul of the entire Fiat/Lancia/Alfa
Group. Imagine the halo effect across the board if this were
done properly. Perhaps I am a sentimentalist but, in fact, I
feel bound in my favorite era of the Italian motor industry,
where there was a DNA pulsing through so many products of the
sixties and seventies that seemed to be linked to the Ferrari
mystique in ways that were far
 from
tenuous. Although the entire Fiat and Lancia range from this era
is somewhat still maligned (with stories of rust and reliability
woes), it is often remembered passionately and affectionately.
Were these cars that much worse than their competitors from
Japan, the USA, and Germany? The truth is NO.
Don’t forget, Alfas were the BMW M cars of their day too, and
that a succession of utterly seductive Lancias, with their Nardi
steering wheels, were the louche alternative to a Mercedes for
the motoring cognoscenti. There was also exhaust rasp, slick
gearboxes and wonderful suspensions; though time seems to have
largely ignored these facts.
In particular, the FIAT range was imbued with this baby Ferrari
sensation that made workaday cars sexy not just in Italy but all
over the world! To this day these cars are cherished and fondly
remembered though they are perhaps not lusted after by baby
boomers with Exotica in their eyes, having been bred on a diet
of 3-Series Bimmers.
When you sat in a 850 Coupe or 124 Sport, for example, there
were Veglia instruments with flickering needles that seemed to
be transplanted from a Daytona, there was a shiny Chrome gear
stick with a round plastic ball on it just like a GTCs’ and even
under the bonnet there was a Lampredi designed engine just like
a Dino!
Really what is BMW compared to Alfa? Look at what BMW has
achieved from a base that consisted of Isetta bubble cars and
the lone 507 as a point of interest. Look at Porsche, its
origins as a maker of VW specials and where it is today:
currently trying to swallow a major shareholding in VW Group!
What an opportunity wasted!
I hope the FIAT and Ferrari execs are lurking out there
listening to what goes on here at F-Chat. There are passionate,
intelligent people here every day and you know they are
concerned. Marketing is fine and good but we all want
engineering and technology that can substantiate it. If that
doesn’t happen in the future I’ll be dusting off the Fiero and
putting on a body kit before I buy another T-shirt with a black
prancing horse on it.
Viva Italia!
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