"The Wild Economics Behind Ferrari’s Domination of the Luxury Car Market"

“We are not—we are not—an automotive company,” said Chief Executive Officer Benedetto Vigna in a recent interview in Maranello, the city in northern Italy where Ferrari is based. “We are a luxury company that is also doing cars.”

What a joke.

 

“We are a luxury company that is also doing cars.”

How much can they be making on those ridiculous outfits. I know lots of Ferrari owners, and have seen 100's at the FCA Annual meetings, and not a single one of them wore any of that crap.

 

Turned into a Fund that sells a company that goes racing.

 

But doesn't win.

 

You had to bring that up!

Hey, as they say in baseball, there's always next year!

 

Enzo said "Ferrari is not a car company,it is an engine company. We throw the car in for free."

 

Honestly, kinda makes me feel foolish for having just bought another Ferrari. But not enough (yet) to stop looking at TDF’s and 296’s….

 

Except, you know, LeMans.

 

Well, clearly I need to boycott buying brand new Ferraris. That will show them!

(and it will be *really* easy for me to do.)


Image Unavailable, Please Login

 

This culture/tradition is still alive within parts of the company. I'd assume that it will stay like that for decades to come (provided that it will still be legal to design and built ICEs in Europe).

 

Closer to next decade...

 

This got me good, lol.

 

At least Benedetto said the truth!

They’re not Formula 1 champions.
They’re not car enthusiasts either.
They’re not engine addicts anymore.

They know they’re a bunch of stockholder clerks selling anything they can at the highest possible margin, which is luxury, and he declared it with honesty.

Problem is, if that’s your positioning then it is really improbable that you will make any new irresistible sports car, or you will make people dream, not to say you will win another F1 title.

 

Luxury.

What is it?

At best luxury is the form of things satisfying our desire for beauty and exclusivity beyond their pure functionality.

I have a new Swatch Flash Arrow, a remake of the early ‘90s. Is it beautiful? I believe so, and many smiled at it too. Is it considered luxury? Not here, because most people can spend 100 € for a watch.
But bring it to… Mali. Would people smile at it? I believe so. And would it be considered luxury? Probably yes, in a country with a GDP per capita of 900 €.
My Swatch is beautiful and in some places can be luxury.

Okay, now we take the LV Ruby High Flat Boot.
Can anyone say they’re beautiful?
If so, let’s call a psychiatrist!
They’re as ugly as hell, yet they’re luxury.

So the very sad thing about saying you’re just another luxury bs maker selling cars too, is that your cars aren’t necessarily supposed to be beautiful, nor to win races.

How sad.