Ferrari chairman Luca Di Montezemolo to quit after 23 years

Just saw a posted article.

Iconic Fiat CEO Marchionne Stepping Down in 2018 | Watch the video - Yahoo Finance

Now where will the future of Ferrari be heading.

 

https://m.youtube.com/watch?feature=youtu.be&v=5IrOHfVkHOA

Official factory video. Hope not a repost.

“It’s not easy…” were the words with which a visibly moved Luca di Montezemolo began his farewell address to the employees of Ferrari’s GT Division last afternoon. He was, unsurprisingly, interrupted several times with long applause from the assembled audience. In recent days, in fact, the women and men of Ferrari had asked on several occasions for a farewell meeting and embrace with Mr Montezemolo before he leaves Maranello after 23 years. Although clearly unable to speak with each employee individually, Montezemolo was eager to meet with them as a group, having already spoken to the Gestione Sportiva Formula 1 Division before the team’s departure for the Japanese and Russian Grands Prix.


Marcel Massini

 

Increasing from 7,000 to 10,000 over a few years isn't really even much of an increase... They can probably increase 10% today and nobody would know the difference... There's no reason for 1-2yr 'lists' for a car.. Exclusivity is important, and those who really care about that are already, and will likely remain at the front of the line for new models, but there's really no reason at all for there to be a 1yr wait when you're 2yrs into production... Keep it at 3m or 6m wait to lock the build, is still exclusive, but new customers do not have to wait as long... It would also allow new customers to the brand without forcing the purchase of used cars first for a slot at the dealer as the deler wiol have more new slots they need to sell... I bet it won't hit resale values to much either - some people would still buy used at high prices to not have to wait 6m.. I also doubt that increasing volume means suddenly there's a huge flow of new cars to dealers to sit on lots.. They can still 'make to order' just make more of them...

As I was reading through this thread, I also thought more about the 'exclusivity' of the brand.. Assuming Ferrari's closest competitors are McLaren and Lamborghini (Porsche isn't really a competitor, as their most expensive models are less than Ferrari's least, Audi the same, Bentley/RR are different target markets, etc), Ferrari makes 8 models (f12, ff, 458, 458spyder, speciale, specialeA, California, LaF) while McLaren makes 5 (p1, 650, 650 spyder, 12c, 12c spyder) and Lamborghini makes 5 (610, 700, 700 roadster, 570 squadra corse, 720 50 anniversario)... Obviously that includes variants of 'core' models, but only looking at 'core' models, Ferrari makes 5, McLaren 3 and lambo 2... I do not believe that Ferrari will start to make an SUV, but they already participate with more models in more segments than their closest competitors... If they convert the ff into a good looking (I actually like it), awd 2+2 they can compete really well against wraith, ContiGT, etc, and if they built a 458'lite' or dino model, at 180k, they would seriously hurt the 911 - easy ways to increase volume a lot without diluting the brand, but I don't see McLaren or Lambo going that far... They could also brand the 'dino' as an Alfa, leverage Ferrari tech/manufacturing, and create a really high performance 911 fighter...

On the topic of F1, they really do need to get back to winning... It's hard to leverage their 'history' when coming in 7th and 12th at various races, and they'll sell a whole lot less hats and t-shirts, where a good bit of their profit comes from... This doesn't happen after 1 or 2 years, but a decade of lagging behind RB, MB and we'll see what McLaren/Honda does would really hurt the image which is the value of the brand... That in turn hurts the entire Fiat group, not just Ferrari as it's flagship...

 

Waited 3 months for both my Alfa Romeo and my BMW which over here in Europe and particularly in Portugal, are everything but exclusive. Planned to stick with them several years so had them custom made at the factory instead of settling for a standard, pre-ordered car in inventory. Having to wait the same amount of time for a Ferrari than you wait for a BMW which is consistently well inside the top 10 in terms of sales in my country has got to kill exclusivity.

If you have a Ferrari for the same pricetag than an average Mercedes and have to wait the same amount of time you'd wait for a top 10 seller is aiming at the very heart of exclusivity, which in turn is the very heart of the brand, hand in hand with racing pedigree.

A Ferrari has got to be expensive and you have to lose sleep for months or even a year aching over its arrival. That's part of the magic. Remove that x factor from the equation and you'll most likely lose your faithful clients. You'll end up with a very different kind of client, but those who feel attracted to the brand's core as Enzo intended, will be disheartened.

It *IS* possible to adapt to the times without having to sell your soul. We can't carry on making cars in 2014 like Enzo made them almost 30 years ago. But you can keep the brand from selling its soul to the devil of easy money. Just my two cents. If I ever see a Ferrari SUV, Diesel and/or plug-in, I'm not sure I'll resist the urge to take it behind a barn and shoot it dead. Enzo would thank me I'm sure.

Cheers,

Nuno.

 

Previously, I asked who should have replaced Enzo other than Montezemolo. Today, I want to ask who should replace Montezemolo. We know Sergio can't cut it, so ......

 

That's actually a very good question.

John Elkann perhaps?

 

Companies like Ferrari have traditionally been shaped by the man at the top but I wonder if Fiat wouldn't like to get away from that model.

 

I agree with most of the above except that I actually think the biggest competition to Ferrari for sales are Porsche and Audi (R8). Porsche is currently filling out the driver's performance car at a generally lower price point and still has mass name recognition. Its higher priced offerings are at or near Ferrari levels (GT2, GT3RS, Turbo S). Less flash, more (perceived or actual) reliability, less sizzle. It is the classic rivalry, re-created ad nauseam in the mass market publications and shows (think Jeremy Clarkson / Richard Hammond and all the Porsche/Ferrari comparos).

For a lot of Ferrari owners I am guessing they owned a Porsche 911 variant before their first Ferrari. Lower priced entry into a historic marquee, with all the pedigree but fewer risks to ownership. Now, imagine Porsche really executes on a GT2/RS priced car that adds a bit more flash and sizzle, but with the same engineering prowess and performance? The Porsche name is still strong enough to sell (heck, the 918 is selling pretty well at a pretty lofty volume goal). How many of those Porsche owners may just continue up the family tree instead of jumping into a Ferrari?

There is a business risk to blocking out the $150k segment and treating customers like they should feel privileged to walk into a showroom, not the other way around. Ferrari doesn't have a monopoly on perception and prestige and, quite frankly, their attempts (the California) to broaden appeal may backfire in the longer-run.

 

I'm perplexed by this... the wait for the order is considered part of the mystique? I think Porsche has it right (or how it should be)... that the child admiring the red Ferrari driving down his street, working hard to be a success, and then buying that car... that creates the mystique.

If it comes to the point of making customers wait as being part of what makes it special to buy a Ferrari, especially if the wait isn't because the thing is being handcrafted to specs (it isn't), then I don't find it special at all. Just manufactured desire. The desire should be there because of the journey and what you obtain (the product).

Even the strongest brands lose their way. I think some of the cars Ferrari has produced in the past are bigger mistakes than adjusting their range to something that will survive after the oil money runs out and Chinese new money shifts to another consumable.

As for being the price of the average mercedes... not sure what you think the avg mercedes prices at but it's somewhere around 1/3rd the price that people on this thread have been bouncing around as a logical entry level price ($150-$200k). My pricing view is admittedly U.S. centric but the vast majority of cars Mercedes produces are in a rather modest price range, relatively speaking.

 

A wait list of 3 or more months for a standard road car is absolutely normal where I live (Switzerland). Over the years I have ordered and purchased more than 20 brand new cars including numerous brand new VW Golf R32's and Golf R's. AMAG, the Swiss importer, is unable/unwilling to deliver faster than 3 to 4 months. Every year the same horror. They treat you like XXXX even after having purchased and paid in full (no Leasing) so many brand new cars.
I can get a brand new Ferrari in Switzerland much quicker than a Volkswagen Golf R.

Marcel Massini

 

wonder why u keep buying from them if they treat u like ****

 

Marmist has a point there, imho. If you feel you've been treated unfairly, there are a lot of other super nice sportcars money can buy.

Enzo stated that the client is not always right. And taking into account all the pleasure I get from his machines, I can live with that. Just don't take away the exclusivity nor the racing pedigree from the brand. I don't mind being treated like **** if it happens someday, I wouldn't dream of buying another car even if they treat me like **** because there's no substitute for a Ferrari. Nothing else does the trick for me. Not quite like a Ferrari. But take away exclusivity and racing pedigree, or start manufacturing SUVs, diesels and plug-ins and yes, they'll lose a client here in a heartbeat.

Kind regards,

Nuno.

 

I thought about both of those examples, but I concluded that they weren't 'true' competitors due to the range of offerings being so far below the Fcar price point... The lowest Ferrari is the Cali, with very few options at ~$225k? Even a really, really loaded 991 TTS is just over 200... Most speculate that the GT3RS will be ~$180 base.. The GT2RS will be in that zone, but if made at all, will only be a few hundred units... Same holds true for Audi... As a corporate competitor, Maserati is a better comparison to Porsche than Ferrari... QP, Ghibili, GranTurismo - all priced in the Porsche zone...

Agreed, but that's actually why I think of Porsche as 'complementary' almost to Ferrari, not competitive.. Many Porsche buyers can't or don't want to spend 300k on their sports car (avg 991 prob around 125?) Any I would bet many Ferrari buyers also have a Porsche - not in competition, but used differently (dd vs wknd, etc).

Not the GT2RS, as it will be such low volume, but if they come out with a successful 960, that would be a direct competitor.. I can speak directly about my F-in-L, who has had 7 or 8 porsches over the last 15 years, but now has had 5 Ferraris over the last 5 or so and without a 911 since 2012... His last was a TTS, and while its a great car, they just didn't make anything for him to move up to from there... Now he has a cali as his DD and a 458 coupe and spyder for fun...

 

I don't think anyone ever talked about a diesel or SUV, so no further comment on that. Plug-in, I wouldn't hold your breath on... Regulations will eventually force that sort of tech - 918's a plug-in and it's not too bad...

Maybe I did not communicate clearly on the 3m - 6m comment... I meant that long of a wait to lock your order in, you of course would still have the time for the build to start, be completed and shipped, etc... I ordered a Benz 1-month after the model was released and was driving it ~3 months later, but I picked my options and order was in right away... I would not have waited 3m before that process started, I would have bought something else... If cars where you live take longer to get, then increase the list time from 3m to 6m or 9m for your geography, the point is there is no reason at all to have a 1yr or 2yr wait time... That's just unused volume.. How many buyers while waiting 2yrs for their Speciale of f12 go out and buy a 991 GT3 or 12c or huracan while they wait? then trade or sell once the fcar arrives? that's a missed opportunity..

My guess is really faithful clients don't wait a year either - they're at or near the front of the line... They're buying the newest thing, and don't care much at all if I wait 6m or 2yrs, as long as they get it first.. If a 10% increase in volume for the next few years turns those who were attracted to their 'core' away, then they likely weren't that attracted in the first place... I don't think the volume increase is their biggest concern, but the quality of their competition has never been higher in their history.. What did the 355 compete against? (I'd have to think back but don't actually know), whereas the 458 today competes against the 12c, 650s, Huracan, SLS, R8, GT2/RS, LFA?, etc... The closer the competition gets, the more they have to focus on quality and performance... And if they keep underperforming in F1, the lifeblood of their marketing begins to fade... (Audi wins, Porsche wins, McLaren not so much, but you get the idea...)

 

mgent,

Point taken, thanks for that, I now fully understand what you meant.

I would only add this, if I may: the distinction between collectors (speculators), enthusiastic owners (us) and next trend owners (show offs who can't even be bothered to spell Ferrari correctly but hey, as long as it impresses your neighbors and your inner circle). This new path Ferrari will be taking will affect all these three groups in different ways and I'm sure it'll prompt different responses.

I do think however that long waiting lists don't pose a threat to Ferrari in terms of losing customers, if so they would have done something in the past. I believe Marchionne should be focusing on other areas when he takes over. Bigger challenges are afoot.

Kind regards,

Nuno.

 

Can anyone picture the chubby accountant in a sweater up on that stage to debut the next car?!?!

 

I agree Porsche complimentary, I have a few Ferraris but my winter car is a Porsche (Cayenne with Pirelli scorpion ice and snow tires - amazing) and also have a basic 991 C2 cab silver/black, fun car, plenty of punch for zipping around in and can use when you want to keep the show off factor low, or go out to dinner etc.

To get back to the topic, I am worried about production increase, many don't remember when you couldn't give new Ferraris away. Let's face it, going back to the Porsche example, you get similar performance for 1/3 of the price (e.g. cayenne turbo vs FF etc). Also the game of having "limited examples" of 599 or whatever and then going 50% over that (or 100% over in the case of the 599 aperta) and thinking no one will notice is wearing a bit thin.

 

355 competed against the NSX, 993 TT and 996 TT, bmw 850csi and on a lower level the RX7 TT, Supra TT, 300zx TT, 3000GT TT etc etc. There was a lot of competition back then and (a lot) more from Japan than there is now in the higher end sports car space. Now we basically have the GTR from Japan and that's about it.

 

bobzdar - thanks for the info on competitors, as I couldn't go back that far... Not also knowing the price, only the NSX, TT, 850(?) are really 'exotic' out of that group.. Also agree on the Japan comment - it will be interesting if we see the new NSX, Toyota GT-1 and maybe some sort of Nissan competitor added to the mix...

 

Fair enough and you make good points -- for the more flashy / zing car from Porsche I was speaking to a mid engined car directly targeting Ferrari, not a current offering (so the 960).

As for competitor vs. complimentary... something can be both, to different market segments and different flavors for different times, but also factoring into purchase decisions. A common decision for someone looking to track a supercar is a Ferrari vs. a GT3 variant. For a super fast car that can be used as GT... Turbos vs. the V12 Ferraris.

Sometimes experiencing the competitor and experiencing the sales process (or pre-sales process) can change longer-term purchase decisions.

Price difference of 10% between a fully optioned TTS vs. a California is not making/breaking the purchase decision. Also, most Porsches are fully optioned, and the option prices (as % of base) are legendary. So there are a lot of people opting for TTS over the California (TTS cab in particular is a real competitor).

Ferrari left the door open for others to dominate a segment that may be opening options for future business -- I think a Porsche mid-engined car fully powered (not Cayman) will be compelling to many current Porsche owners in lieu of upgrading to Fcar. Audi R8 clearly opened a segment by introducing the V8 version and then the V10 variant (which, depending on how they are optioned then push into Ferrari price territory). A friend of mine swears by his V8 R8 over his F430s -- the market isn't as static as Ferrari may think and capturing mindshare, particularly of younger generation who is building wealth, remains important.

 

Having car's made at home by house wives doing piece work ??

 

Good comment if you consider the optics except the sweater guy won't be handing you the keys to the new Ferrari. It has no bearing on your personal Ferrari experience...

 

Just got my new Forza. They have a two page article on Luca's major achievements at SF. F355 etc. 5 WCCs. Failed to mention the 458 which is one of the best sports cars ever produced. Thanks Luca.