Ferrari Will Keep Making Fewer Cars Than The Market Demands | FerrariChat

Ferrari Will Keep Making Fewer Cars Than The Market Demands

Discussion in 'Ferrari Discussion (not model specific)' started by Booker, Sep 20, 2019.

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  1. Booker

    Booker Formula 3
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    Aug 1, 2016
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    Jack Booker
    DGPF and AlfistaPortoghese like this.
  2. ralfabco

    ralfabco Two Time F1 World Champ
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    Mar 1, 2002
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    Itamar Ben-Gvir
    They build way too many cars and have diluted the marque.
     
  3. boobernackle

    boobernackle Formula Junior

    May 28, 2016
    951
    They state the 812 SF has a 2-3 year waiting list now, that's simply not the case with my dealer (USA).

    Walk in today and there's an allocation readily available.
     
  4. Dean Palmer

    Dean Palmer Formula Junior

    May 21, 2010
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    St. Petersburg, FL
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    Dean Palmer
    I think those that want a new one will be patient, but seems like lately the overall selection at a lot of dealers is pretty extensive. More than I recall in past years. Was wondering if there was a lull in sales lately.
     
    I'm 360 Canuck likes this.
  5. AlfistaPortoghese

    AlfistaPortoghese Moderator
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    Mar 18, 2014
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    Nuno
    It doesn’t. Ferrari is playing with words.

    Of course they’ll increase volume. It’s impossible not to, not with this new strategy of theirs. Anything else is cooking numbers.

    Kind regards,

    Nuno.
     
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  6. I'm 360 Canuck

    I'm 360 Canuck Formula 3

    Nov 21, 2015
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    Lars!
    I think they will increase production of their entry level vehicles while decreasing production of the higher priced ones to make them more exclusive.
     
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  7. intrepidcva11

    intrepidcva11 F1 Rookie
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    Jan 12, 2009
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    Seth
    If one looks at the results of the recent Monterey-Pebble Beach auctions, it is clear that the market for collectible cars other than the 'one-of-a-kind' rarities has become extremely soft. That must translate into a soft market in new Ferraris. And Lambos and even Porsches.

    Here's Hagerty's take on the Monterey sales:

    "Although a few more major sales will likely finalize over the next day or two, the preliminary totals fell short of expectations and lagged behind 2018 results of $370M by $125.4M (-34%). This amount is the lowest tally since 2011’s $197M. Standard measures like average sale price ($319,610 vs. $436,849), median sale price ($24,200 vs. $29,700), and sell-through rate (58 percent vs. 62 percent were all down, as was performance against estimate (the average high bid was 16 percent below the low estimate this year vs. 10 percent last year). With all these statistics signaling a slumping market...."

    A similar softness was experienced at the Saratoga Automobile Auctions run this past weekend.
     
  8. Gh21631

    Gh21631 F1 Veteran
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    Feb 24, 2011
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    East

    I wouldn't get too hung up on these numbers, the market has always moved up and down and is usually a precursor to the economy. Buy the right cars now, sit and wait and you will see them pop down the road.
     
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  9. AlfistaPortoghese

    AlfistaPortoghese Moderator
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    Mar 18, 2014
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    Thank you for sharing the data and the insight with us, Seth.

    I’m struggling to find the main reason for this softening of prices... A simple case of strong economy and returns on the market = less interest in buying rare supersports cars?

    Kind regards,

    Nuno.
     
  10. tbakowsky

    tbakowsky F1 World Champ
    Consultant Professional Ferrari Technician

    Sep 18, 2002
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    Ferrari has increased production year over year to keep up with demand. If they really wanted to stick to their roots, production numbers would be the same as when they were building the 328, 412 and TR.

    Can't do it now, they are public. Expect year over year increases in production and even more models saturating the market. The Ferrari we knew growing up is long gone.
     
    Texas Forever likes this.
  11. bob_Uk

    bob_Uk Karting

    Oct 13, 2016
    100
    Here's a thought. Production increases due to shareholders. Majority voting shareholders are family and not too worried as they have cash and control. Something goes wrong - economy/volume/model range growth/Europe recession etc. Share price falls, family takes back Ferrari into private hands. Volumes decrease back and range contracts as family wants a sustainable high demand product and have enough cash already to look long term....

    Five years I would think if it is going to happen.

    Of course opposite could happen and the share price climbs and climbs while everything else around it struggles.
     
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  12. Elisesko

    Elisesko Karting
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    Jan 27, 2016
    210
    If it stops being a growth story, they could raise the dividend and return a portion of the profit per sale back to the shareholders in the form of cash. Growth story is fun but return of capital also works.
     
  13. JTSE30

    JTSE30 F1 Rookie

    Oct 1, 2004
    3,242
    Austin TX
    I think some are believing an economic recession is near and are simply waiting to reap the believed benefit of even lower prices due to the perceived imminent recession....why buy high now when next year you can buy more for less?
     
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  14. tbakowsky

    tbakowsky F1 World Champ
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    Sep 18, 2002
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    The smart by at the bottom, or where they feel their money returns the best value. I have a few clients with massive car collections all built on bottom dollar values. Their collections are at this point an investment..an Aston bought at 20k is now 200k..even if it drops 50% they are well above water.
     
  15. F456 V12

    F456 V12 F1 Rookie
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    Sorry folks, not the case. They have shareholders, a board of directors and Wall Street expectations on YoY Revenue growth, profitability and marketshare targets. Anything less will punish the stock, Ferrari is in the car business to sell cars, not to protect owners from depreciation and market forces. So to think the brand gives a rip about a bunch of wealthy owners by controlling supply is just a wishful thought. Even for the new halo car, Ferrari will build as many as potential owners are willing to buy. It ain't Enzo's company any longer, sorry boys.

    MB
     
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  16. DanielDaniel

    DanielDaniel Rookie

    Jun 21, 2019
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    Daniel
    Ferrari are making alot of new cars now and some of the cars ...looks almost the same design and is getting confusing ....what is what ...all look the same

    ...owners have not even had time to enjoy the new delivered car

    and here we go again ....the new model is out ready to take orders and is getting very confusing

    and best is to buy Ferrari Classic Car and is Beautiful and is Elegance ......not mass production
     
  17. HotShoe

    HotShoe F1 Veteran
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    Nov 3, 2008
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    Anthony Lauro
    In regards to production, I'm curios to see what others experience....

    Down here I see at least 3-6 Ferrari's a day on average (yes, I count). IMO that seems like a lot. Is it just a south Florida thing or do you frequently see Ferraris in your neck of the woods?

    Growing up in Ohio it was a major event to see a Ferrari on the road. Now it seems normal, almost common. Perhaps I've just become jaded but I can't help but fear with every ramp in production and model increase they get closer to becoming Porsche.
     
  18. vrsurgeon

    vrsurgeon F1 World Champ
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    Dec 13, 2009
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    I often say FChatters living in South Florida, LA, and the Hamptons live in La La land. You can't draw conclusions to the rest of the country. I haven't seen a Ferrari on the road besides mine in like months
     
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  19. Scott98

    Scott98 F1 Rookie
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    Nov 3, 2004
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    Funny thing here too is when you see an exotic, it’s almost always a newer one. Even 360s are becoming a rare sight. But everyone’s got a 488, 458, Huracan or Aventador. Don’t see Murcielagos anymore either - too old. We have an annual toys for tots exotic car event with about 300 exotics. Last year there was only one 360 which belonged to one of the organizers. Even the 430s were starting to dwindle. And there were probably 60+ Ferraris there. It really is La La land.
     
  20. F456 V12

    F456 V12 F1 Rookie
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    So true, in the OC exotics are an every day occurrence and to the contrary the likes of a BMW and Merc can be very rare in many parts of the country as well. I remember visiting my daughter when she was at State College, PA...lot's of Fords and Chevy's, hardly a Euro import to be seen.

    MB
     
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