Ferrari short seller claims exclusivity is over and Ferrari doomed

This author is really gunning for ferrari, its actually a bit weird tbh, he clearly has nothing better to do, he should get a life still ferrari is not as exclusive but who cares, cars still the best out there and you can't knock a guy for trying to make cash, we all did it or we wouldn't be here!

Sent from my CLT-L09 using FerrariChat.com mobile app

 

IMHO, there are some objectively sensible observations in there, particularly around the general saturation of the luxury/exotics market especially when every manufacturer has shown to be upping their output of "limited editions", from Bugatti to Ferrari. And I agree this is just the beginning of the decline, not just for Ferrari, but all mainstream exotic car manufacturers as they continue to over-saturate the market.

He made a hasty generalization about how chinese ppl / asian ppl in asia prefer to be driven, this is true and false because the culture of being chauffeured pertains only to the daily commute because traffic is just insanity in Asia (Thailand, China, Indonesia, Phillipines etc all stupid bad). Having a driver is a norm, even middle-class people have at least 1 driver; back home in Indonesia a well-to-do household will have at least 3-4 drivers per household to drive each family member around. But this has gradually and continue to change with the copycat economies of western Über/Lyft/Postmates etc in the likes of Grab, Go, Didi etc Now more and more people are less reliant on even being driven to destinations for services and wares, they just have people deliver them to their door. In China or anywhere in asia really, you can even have someone come to the house to do your nails and hair or deliver 1 bag of potato chips for 1 US buck.

Beyond the daily commute though, there are still a select folks who still love to have a spirited jaunt behind the wheel on the weekends when traffic is not insane. With that said, it's becoming more and more evident that the the car hobbyist community is shrinking with every passing year. And in Asia, the time when a nice car is a status symbol of wealth and stature is gradually waning...more and more people don't care and as more care less, people who once did care and got into it for status will also move away from spending on a car. The "new money" I know in Asia enjoy theor wealth on mostly "well-being" and home. "Old money" can only float the market for so long...

 

Ferrari stock will decline once we have a deep recession. It will not significantly decline for any of the reasons he states (I will allow for the coronavirus argument but that affects all high end cars, so duuuuh).

 

Not sure I agree with his methodology. An increase for sale on auto trader shows owners selling their cars on the used market. If this shows that owners who WOULD buy new cars don't have the money to transact the purchase of the new car.. (doesn't say that in the article) then I'd agree. As it is, Ferrari sells NEW cars and there is no indication that the demand for NEW Ferraris is diminishing at all. They make money on NEW cars sold. Once the entire production allocation isn't sold, or 90% of it, then I'll buy the brand is diluted.

 

The brand is definatly not as exclusive as it once was. Lots of used product available on the market for the price of a mid range BMW.

As production numbers increase..the amount of cars available on the secondary market increases. Almost every used car lot has some sort of Ferrari or exotic in thier showroom. Not even 20 years ago..people wouldn't even know where to purchase a used ferrari..they were still very exclusive, and still expensive. Now? Just another ****box with a big price tag.

 

Drive around Newport Beach, CA. On any given day, you will see a bunch of Ferrari’s. And Bentley, Aston, Lamborghini, etc. They are a dime a dozen out here.

 

Sure, but I would guess that NBC is atypical due to the wealth and great weather. I can go months without seeing another exotic here in DFW, unless I'm at either at an FCA or Boardwalk event...T

 

With the level of profitability Ferrari runs at they can lose half their market and survive. The amount of steel, plastic and rubber that goes into a car is the same for all manufacturers. Ferrari uses the same steel and many of the same suppliers as Fiat. Ferrari also has a huge ace in the hole in that they don't have to spend millions a year advertising.

 

I think they are second behined coca cola..following Ferrari I beloved Apple is next?

 

Hello everyone - I'm new to the forum, but a long term Ferrari owner and enthusiast.
I must admit there is some rationale and truth in the authors comments. In my opinion, Ferrari seems to be producing far too many cars and models - which in any financial climate (up or down turn) can be problem for a such a brand.
Ultimately it is a business and it's all about the bottom line. However, Ferrari must not forget the reason they ended up in such an enviable position (they haven't always made the best cars) but there was always a real passion in their motors and brand.
Today, almost all manufacturers make a 'good car' - some faster, others prettier and all have a special 1 of some number edition model - but a Ferrari, is Ferrari! I (and their dealers) hope that remains the case!

 

brandfinance is like JD power.....

make up your own ******** and sell it

 

In the United States, demand for new Ferraris tends to follow real estate, particularly home, prices. If real estate prices are holding or going up, people feel good about luxury spending. Today, a $1MM cash-out mortgage will only cost you about $35,000 a year. So, yeah, go ahead and buy whatever before you get old and die.


Sent from my iPhone using FerrariChat

 

i refi'd late last year 30 3.75%

just checked with my broker now 3%

buy em

 

Corona virus will hit hard Ferrari sales and exclusivity will return.

 

I'll take three dozen, please.

 

All Ferraris, or would you like an assortment?

 

If I sat on the BofD of a company that made exclusively ICE cars, the two items of advice I would offer management would be to sell as many cars as possible that were already in the manufacturing pipeline. And, get into electric vehicles ASAP, possibly a JV.

The future is just too damn murky for me to offer anything else.

BTW, I have served on boards that do nothing more than rubber stamp management. The auto world is in an all hands on deck situation requiring bright minds and bold thinking.

 

it's different than 30 years ago. An exotic was a rare sight. Now it's fairly common.

 

Do they make or lose money from F1?
advertising by another name...