488 GTB (458 replacement)

488 will be around for 5 model years for sure - Afterwhich a new platform will accommodate
Two different body styles - one an aggressive V8TT the other body style will have a V6TT
No hybrids those are only for the future V12 line - That's a summary of what I've come across

 

I guess you are right. The Ferrari model and engine range will grow.

 

They are doing an IPO so they must grow the range in order for the stock price to rise
There is literally Billions at stake here.For all those folks out there crying about exclustivity
getting diluted I'm sorry but FCA is Not going to sacrifice Billions in market cap for your Ego's

 

Source?

 

Where did you read that? I haven't seen that anywhere regarding the v6.

They need to increase production, not necessarily add new lines. Ferrari makes more per car than any other car company in the world. Their ability to expand production is also limited; so increases in production are not expected to be massive. At least initially.

 

Yes and no. They could also pay a dividend.

Not just about ego. Difficult marketing exercise also. If the perceived exclusivity is lower, then people may not be willing to pay as much per car. Have to balance production w margin.

If that were the only concern, they would just make a Ferrari SUV because every wanker in the world would buy one of those ; )

 

I wonder when and by how much this will drive the prices of the 458 down.

 

There is No source form my comments it's my opinion on what should be FCA's
business outlook going forward.They have dropped enough hints about increasing
volume and the main reason to IPO is show growth rates to the investment
community otherwise what sense does it make to IPO ???

 

SUV is the line in the sand they will not cross But there are many product
ideas they can still do like 2+2 coupe based on the Cali chassis.They could
also do Ultra sporty Four door cars without diluting their image as well

 

Marchionne said no SUV and 4 doors.

 

True but IMO 4 door would not damage image

 

I haven't seen Marchionne keep his word thus far on anything else he has said.

 

IPO is to raise cash for Fiat. That was the rationale. Had nothing to do with Ferrari itself.

 

Then you let it sit stagnate ??

 

It won't stagnate. They will grow two ways after spinning off but the end game does have a limit in terms of units produced but no limit in terms of pricing.

1) Increase production. This will be minor, measured and slow. 7000 cars to 8000. That won't make a difference in world demand. Ferrari will still be making one less than there is demand for. Over the coming years, they can grow until they hit 10k cars as demand warrants but will not produce more than current demand (minus one).

This is easy to do since everyone orders and waits for a car. Once the waits get too short the allocations will simply slow down so wait times go up. This happens to be very easy for Ferrari to balance. It's like playing poker where Ferrari is the magical player who can see all the players hands.

2) The 2nd financial lever is pricing. Look at the price of the 360, 430, 458 and now 488. Notice something? Prices always go up with each model. Ferrari (like tobacco companies) has tremendous pricing power thanks to their brand and product. They can continually command higher prices for their cars year after year. Think that is impossible to do forever. Go back 5 years a a time for 50 years on the tobacco companies. Their revenues and profits continue to grow even at a time where usage drops 2% to 5% every single year. Pricing power is magical.

Ferrari is still leaving tons of money on the table right now. LaFerrari was 1.5M. They could have doubled that production easily and still sold every single one. So maybe the owners could only flip them for 2M or 2.5M instead of the 3M plus now. So sad for them, right? Ferrari demonstrates pricing power here too. Enzo was 500k. LaFerrari was triple that price at 1.5M. How much do you think the LaFerrari replacement will be in 10 years? I'd bet between 3M and 4.5M to the lucky chosen ones. Maybe they will make 999 of those? If they do a buyer will be lined up for every single one. I don't see stagnation here in the future but rather lots of growth potential.

In summary, Ferrari won't stagnate. They will continue to prosper as long as they produce killer products that people want and don't push supply too far beyond where demand is at any given moment. Could they screw that up? Sure they could. It's just not likely. Ferrari has a culture embedded in it now and it is simply theirs to lose. Apple continues to do well post Jobs and Ferrari will do well post Luca as the standalone company they are about to become.

 

When will the press be getting their hands on the 488 for review?

 

Time to take a closer look at McLaren

 

I was lucky enough to be invited to the a World Premiere launch in Maranello and also went to the Geneva Motorshow.
The new metallic Rosso Corsa looks brilliant - shame that it's a triple layer paint and hence will cost £18K / $25K upgrade!!
I borrowed a Cali T whist my Italian had a routine service - and I sincerely hope that the new 488 sounds a whole lot better; else I'll be looking at pulling my deposit and keeping the 458!

 

Reading a good article on Bloomberg a while back the IPO was to free up cash and pay down group debt. I really don't think it has any other logic than they believe Ferrari is a brand that can stand on its own and be profitable and can be a source of cash now and potentially in the future.

 

Big no no!

 

Exactly

 

Long time lurker, first time poster. I was just at a private viewing in Dubai, and the car looks wonderful IMO. I loved the launch color (Rosso Corsa Met) which will be an option color. They revved the engine a few times, hard to tell but the sound is not bad but also not as good as my 458 (but again, this was while stationary, so I reserve judgment until I hear it in real life). The good news is that (at least in Dubai) the car will be almost the same price as the 458 coupe, and the dealer here will be taking orders soon.


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I hope the 488 tanks beyond all belief due to all the 458 anti turbo owners refusing to upgrade ever again. Don't think it will happen? Neither do I ... What are the viable alternatives? Everyone is going turbo. It's a fact of life.

 

Get a NA Huracan

 

Hardly a superior car...