Ferrari Future Roadmap - Unveiling 5 Year Plan In Early 2018

If Ferrari release an SUV they are dead to me. A Ferrari cannot be 4 doors or a truck. The only exception if there is one would be one secret off's for the very wealthy.

 

Last quarter's financial results for RACE were very strong.
Ferrari is running at a pace for $520M in annual profits on $3.7B in revenue.
To double that level of profit, it will take both a car model design strategy and a new sources of revenue strategy.

They view themselves as a "luxury brand", not just a car company.

It will be interesting where they go in the non-car markets.
More amusement parks? A joint venture on a Ferrari hotel chain? Luxury resorts?
A Ferrari TV channel? A movie studio?
A new high-end fashion line like Hermes, YSL, or Gucci?
A new internet shopping competitor to Amazon?
Who knows, but it has to be ideas that can bring in hundreds of millions of dollars in profit in a short period of time.
.

 

Agree with your points but a big part of their current profits comes from brand licensing and race team sponsorships (note that this is in terms of profits, not gross revenues).

I think their branding and sponsorships is over $200M a year in profits and their car-making profits are about $300M per year (this info is in their public financial statements).
So, even if they add 50% to their car making profits (which would be a major accomplishment), that will only raise their total profits by about $150M per year I think.

To get to $1B in net profits per year from the $500M level, they will need probably an extra $300M or so a year from their non-car-making ventures.

Maybe they'll expand their racing focus beyond F1.
Another major race series where they could bring in $100M in additional race team sponsorships would be great.

All of this is just conjecture on my part, but it is hard to imagine how they can double their current sky-high profits over the next 5 years.
It will take some bold moves to double their current level of success.

 

I'm really hoping for a revival of the Dino brand, with an option for a manual. Not cheap, but priced below the Portofino. That would be the only new, "Ferrari" I would buy.

I'm just not all doom and gloom over the FUV, as Ferrari must increase profits, and you know the demand is there. Not everybody who loves Ferraris is a purist, and that's just a fact of life.

However, if they are going to piss off a lot of Ferrari purists with the FUV, at least they could throw us a bone with a tiny little V6 Dino screamer with a manual.

 

True. I think the general buying public has generally long forgotten that little factoid. Today, the Dino is the 'little car that made good.' Even crappy examples today go in the $.25 million range, and of course, up from there. The $.25 million price point would be a good price level to position a new "starter" car and shove everything existing up from there to make room. Time will tell if the market can bear such a lofty overall product price structure. But Ferrari apparently is not afraid of heights.

 

I'm thinking a big part of their car sales growth strategy has to be in the emerging markets, such as China, the Middle East, Russia, maybe India eventually, etc.
This is where a Ferrari SUV might dramatically improve their sales growth.
.

 

LOL.. like simple in its complexity, sweet and sour, tall in a short way, spartan with alot of options, or crazy yet sane?

This part of the problem. "Purists" don't know what they want.

It's got to be a simple car that's a stick without many frills, but it of course has to have enough frills because we'll complain if it doesn't have enough luxury like a leather interior. It has to have some performance because if a golf beats you at the red light it will be an embarrassment yet it also has to be cheaper because it doesn't have the "frills" of the higher end models but should have "enough" horsepower.
Purists want a stick 355 but more modern, with flip headlights of course and "real Ferrari styling a-la 1990" but also be a modern car based on aerodynamics. It should be an Alfa 4c with a stick, but not BE an Alfa 4C with a stick. This is why it won't be built. And if it is, it's going to be as expensive as possible a-la Porsche 911R.

Poseurs with alot of money are much easier to understand: the most technologically advanced car made as beautiful as possible. And the car will make them look like much better drivers than they actually are via electronic aids.

 

I bet they could sell 4-5000 suvs year worldwide

 

Agreed


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5 year road map? Sounds like another round of the Sweater trying to keep ramping up the stock price. The market, just like the punters who keep buying the cars, will love it. Who know what they will actually deliver?

 

My affinity to the Ferrari (and Porsche) brand and its specific models are rooted directly to motorsports involvement.

I grew up with SUVs and have fond family outings with them. I can understand how some people don’t like them just like how I don’t like pickup trucks. Therefore, if Ferrari produces an SUV, so be it. However, for me to own one, I do hope it is raced right away in the Dakar, Transsyberia rally or something similar. Otherwise, I won’t even consider it for purchase much like how a California is not in my radar to own.

 

They will probably face the common business challenge - increasing revenue and maintaining high margins.
Typically both ways to achieve high profits are huge revenue (mass markets)/ low margins or low revenue (niche markets/exclusivity)/high margins.
Winning on both sides (high revenue and high margins) requires a very exceptional situation, and I am not sure Ferrari is in a position to achieve it (they have certainly a powerful brand, but they are not a monopoly).

 

Apple

 

Yep, nothing new. Every automotive company does this but they (the plans) can be very fluid depending on the purchasing power of the consumer whcih goes along with the economy. As Rossocorsa said, Marchionne's purpose is to drive value for the shareholders (make them money). This can lead to short term gains with long term pains. Been there, done that and it can be terrible to correct. Not saying this will happen, but it should come as no surprise that the stock price has priority over all other attributes.

 

Indeed Apple has been successful, but they had to switch across different markets, going from computers to smart phones, each time with a disrupting approach. Ferrari is a luxury car manufacturer and is willing to remain that, so there are not that many opportunities.

 

Isn't a smartphone a computer thats in your pocket?

Ferrari was never just cars. It was and remains a dream.