california to boost ferrrari production to 10k units pa by 2010

http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4326982.ece

 

I have seen a number of people lament the rise in production of Ferrari street cars. I really don't think this is a bad thing at all.

When you think about the fact that here in the United States waiting lists and premiums are at absurd levels, a modest increase in supply is actually beneficial. What is the benefit of having a bubble where the only people who benefit are the flippers/independent and often unscrupulous exotic car dealer and thel ones left holding the bag when the bubble burst is the enthusiast who actually wants to drive the car.

Ten thousand cars a year for world wide consumption is not an over supply. What is the total number of cars sold by all brand each year in the US? 10 million?

 

Plus cars like the 599 spider and the 430's successor and the CA will be going to foreign markets where drivers here will never see them.

If the increase in production can help Ferrari maintain financial stability I'm all for it.

 

The beginning of the end of Ferrari for me...

 

You do understand that most of those extra cars are going to emerging market?

What a stupid opinion.

 

The 360 was the beginning of the end. Too many cars from 1999 forward. Lambo and Bentley are doing the same thing and no one can argue that it doesn't have an effect on the prestige of the marques.

 

These cars are going everywhere.

What a stupid statement.

 

About the same number of cars Toyota makes - in 4 hours.

 

The number of cars that Toyota/Ford/Honda produce compared to Ferrari is irrelevant. Part of Ferrari's appeal is the exclusivity and by going from 6000-6500 cars a year to 10,000 cars a year there will be a noticable difference in the number of Ferrari's you see around today and the number of Ferrari's you will see around in the next 2-3 years.

 

I really don't think the addition of a new model is going to affect the value of the other models.

 

Well I wasn't really referring to that but I guess we'll have to wait and see.

My point is that the Ferrari experience/appeal/image is being diluted, watered down.

 

do you think FNA will still hold a lien on your title when new ferrari's start depreciating like a new Continental GT?

 

Let's see. Ferrari will boost production by 3000 units a year. Now, given the world population is about 6 billion, that would leave one on about every street corner, wouldn't it? Why, they would be a common as Fords or --- even a Prius!

Ferrari made more 308's than Dino's were made. They made more 360 and 430's than any other car before. Production over time as continued to increase as the market for these kinds of cars grows. If you don't think the world is a different marketplace that it was in the 80's and 90's, then you're simply not paying much attention. What do you want? A 5 year waiting list?

It's from this increase in the volume of cars over the years that allows Ferrari to go forward and justify investing in new and better machines. Think of the specialty manufactorers that have gone the other way. Is that what you want -- just for the sake of keeping the exact status quo? Would it make you feel better if Ferrari turned into Bugatti and made only 200 cars and priced them over a million a piece? Wow! Exclusivity! But, very few can afford them anymore.

Sorry, not for me. I don't want to only see them in photos. Personally, I like the ability to drive them. This idea that somehow a production increase of 3000 units a year is a major problem makes as much sense as people buying a Ferrari and then selling it on ebay 3 years later with 400 miles on the clock.

 

Going from 6,500 cars/year to 10,000 is a whopping 50% increase. That will have an effect on the number of F-cars rolling around. While I kind of like that I can drive my 430 around and know I probably won't see another one (even though I live a few miles from a Ferrari dealer), I also feel that Ferrari must balance supply against demand.

I still find it amazing that GM and Toyota can build 20,000 - 25,000 cars in a day.

 

Illogic in the above: "exclusivity" is, by its definition, a result of comparison, so the number of cars that Toyota/Ford/Honda/BMW/MB/Porsche produce is certainly part of the issue.

Driving around the Bay Area, I see one or two Ferraris a week and, compared to other vehicles, that makes Ferrari very, very exclusive. The 10K production will have very negligible contribution to diluting the brand, except maybe in the wealthier cities in Southern California, where the dilution will be merely negligible.

How important is exclusivity, anyway? Is it driving the car that matters or what one owns compared to what other people own? --> Vanity. And if one does not own a Ferrari, then its vicarious vanity.

 

+1

 

10,000 cars for a 6.5 BILLION people planet!
Are you people serious that this dilutes Ferrari in any way?
In the early nineties Ferrari produced less than 2,500 cars a year and you could get one when you wanted by walking into a dealer and negotiating for a price UNDER MSRP. I know - I bought a brand new Testarossa $25k under MSRP from Ogner Ferrari in Woodland Hills in 1992.

Fast forward 15 years where they produce almost 200% more cars (6,500 cars) and there are multi year wait lists and $100k premiums.
It has nothing to do with the numbers and everything to do with the quality of the cars being produced.

Ferrari have improved light years ahead of where they were in 1992 and the addition of another 3,000 quality cars will only enhance the brand.

 

Yes there is a long waiting list. Yes there are plenty of new wealthy people around the world however contrary to what The Fed, The US government and George Bush are trying to tell us, we are in for some very serious financial problems and so is Europe and the rest of the World. These financial problems are indeed a World problem and the emerging economies will suffer also.

About this time in 2009 the Dow will be below 9,000 and many people will be loosing a large part of their fortunes due to slumping stocks, slumping home values, loss of jobs, and loss of money from their banks collapsing.

Laugh all you want right now but write me back in August of 2009 and you can argue with me.

Ferrari may build that many but that will be the highest year for some time. I agree with others in that even at 10,000 units a year Ferrari is not saturating the World. They are still rare.

 

FWIW, Bentley really shot its brand in the foot with the VW/Bentley CGT, and Lambo has lost much of its exotic-ness.

Exclusivity matters. Look at the thousands of BMW 3 series around -- great car, but boring as all hell and practically shouts "lemming!" If you're a hardcore car guy, Ferrari is one of the last paths to self-expression.

As far as being too common, here in San Diego I see two Ferraris a week maybe -- usually more like zero other than mine. I think Ferrari can increase production without ruining its reputation. Even the "very common" 360 isn't seen all that often here.

 

What matters is the car. My question is if the new production system will alter the nature of what a Ferrari is. They will not only be making more cars but also producing them faster and with reduced labor.
Initially the new production system seems to be limited to the California. If the 599, 612, 430s etc. and their replacements continue to be built the old way it will mean two classes of Ferraris. Is this what the "New Dino" rumors were about?

 

+1

These cars as I've posted earlier will go to emerging markets. Fact they are starting here only pretends to others IMO that they are wanted cars.

The only items in the CA that appeals to me are:
1. mechanics as top notch, I'm guessing from the specs
and
2. chance to buy one someday and re-do it like Napolis' P4/5

 

Well, FWIW, I agree. For Ferrari owners, exclusivity matters.

Exclusivity matters to me, too--who can honestly say it means NOTHING?--but it is far less significant for me than the driving experience.

True, driving a Ferrari says loud and clear (among other things), "That's right folks: I AM special," but, personally, I would not spend this kind of money just to make that statement.

I suspect that, even having the money to buy and maintain a Ferrari, most people do not have the imagination or the daring to buy a Ferrari. Many would prefer to spend money on a car that is pandered to guys who bank too heavily on image. (Lexus and BMW ads are especially obnoxious.) Some are cowed by worries like "People will ask, 'Who does he think he is?'" or "They'll say I'm having a midlife crisis."

As for the assertion in this thread that the California will (end of the world *gasp*) dilute Ferrari's exclusivity, . . . please. Inevitable hindsight will show the concern is groundless. Remember Y2K?

 

China.

 

Correcto-mundo, or in Mandarin "Shr`"

 

Maybe China.. but Russia (and other eastern block countries), India and the Middle East are adding new potential customers everyday...even Japan as Ferrari has finally taken over that distributorship itself. If production does not increase, then the US will get fewer and fewer cars as the given production is spread around the world. That means for the US increase costs and longer waiting lists.... its the basic economics of supply and demand.

I wouldn't worry that they are being "deluted". The US may grow slightly but in comparison to other new markets, most of the additional production will go elsewhere. The only way to rapidly grow the US market is to drastically reduce the price or come out with a much lower priced product that more people can justify or afford. We already know the California is about the same price as a F430 coupe so that's not going to happen anytime soon.