Their business plan consists of supplying only a certain percentage of the demand. Makes sense. My point is that they'd rather be supplying 80% of ten thousand than 80% of seven thousand.
I was in the factory last year when the new factory additions were completed; aside from adding a second shift; i really didnt see any extra space that was not being used. The v8 area was full, as was the v12. If anything, I was wondering where they would build a new supercar. In fact they were just breaking ground on the buildings for the racing department, as that department is growing. Every car maker on earth has adjusted volumes, built plants, closed plants etc. Ferrari is still massively profitable. Not sure why this 'extra capacity' topic is such a big deal... Kevin
True but who knows what their internal time frame expectations are. usually, if you are building a factory you leave room for growth down the road.
There's no danger that they'll be closeing the doors anytime soon. That doesn't mean that things couldn't be better. That an Italian luxury car maker is having a slow sales period in today's economy shouldn't surprise ( nor dismay ) anyone.
No more Ferrari pre-season events at Madonna di Campiglio. This is how the slide start. Aug.2 (GMM/Inautonews.com) Ferrari’s annual pre-season event on the slopes of Italian ski resort Madonna di Campiglio will take place no more. Corriere dello Sport newspaper reports that the main sponsor of F1 and MotoGP teams Ferrari and Ducati, Philip Morris, has cancelled the 2014 edition of ‘Wrooom’ for financial reasons. The newspaper said the media event has been running every January for 23 years. “The costs of the event are no longer sustainable,” said Philip Morris vice president Maurizio Arrivabene.
Why not do all of that except instead of sell less car, sell more cars? Why is selling less cars important? I don't see how selling less cars could have a positive effect whatsoever. They are mass produced by exotic standards by a large margin. There is no way they could cut production to the point at which it made a difference without going out of business. 5000, 6000, 7000, 9000... didn't make a difference before, won't make a difference now.
There comes a point when selling more cars dilutes the brand image. You saturate the market, the prices drop across the board. Consumer perception drops and the product is no longer viewed to be as special and difficult to obtain as before. Not saying Ferrari is at this point, but in general that is how the principle works for exclusive goods. You don't see Patek Philippe at every watch store.
Luxo marketing 101. They could have sold more cars than they did last year but are looking to maintain the same level of scarcity in a weak market as a strong. You don't have to have that long a memory to remember surplus Ferraris being discounted. When the market heats up so will production.
Price point, target marketing, affiliate programs, and branching out into profitable segments such as performance SUVs. Porsche has had some missteps too.
Because brand image and rarity are extremely important. Ferrari doesn't want to end up like Porsche. Even Maserati's target is to have less than half the sales of Porsche.
Not so meaningless, as Phillip Morris is the one who pays the bills. Yet, these days everybody is losing a bit, it´s just that some less than others.
A few more words from Manzoni: The evolution of LaFerrari | Autocar The guy is pretty talented. First "I Promessi Sposi" and now the LaFerrari. What next?
fabulous, wonderful, stately....LaFerrari http://www.wired.co.uk/magazine/archive/2013/08/fetish/laferrari Image Unavailable, Please Login Image Unavailable, Please Login Image Unavailable, Please Login
[ame=http://www.youtube.com/watch?v=nNrk6MHxtFY]Fernando Alonso drives the Ferrari LaFerrari - YouTube[/ame]
Why should Ferrari lend them to the press since they supposedly are all sold No media test drives for 288 GTO, F40, F50 or Enzo when they were introduced, correct? Gr. Martin