Ferrari can't raise its prices. Why have they always sold under market value? There must be a reason??? Because Ferrari knows they get ripped in the Auto press for making a car that cost 15 times what the vette cost and has the same preformance. Right now, at 6 vettes for the price of a 275M, Ferrari gets away with it.... but at a certain point... even the Ferrari loyal start to feel silly. That's why the Enzo went for 660 instead of the 1,000,000 ferrari could have gotten. Even ferrari is worried about bang for buck equations.
i would prefer if they could just lower production (as i don't think there should be new "leftover" '02 model 12 cylinders still sitting on the showroom, just doesn't seem right!), but i doubt they could lower production w/o raising prices so that is why i included both.
I would never support an entry-level model. And Ferrari wouldn't, either. Let those people buy Porsche Boxsters, Vettes, Supras, Vipers, etc. In a time when companies (like Porsche) are watering down their marque, Ferrari needs to hold to 4 or 5 models of exclusive vehicles that offer a distinct experience. Ferrari should be something that a car enthusiast works towards. If they are easily obtainable, the overall presitge of the brand will falter. At the risk of sounding pompous, I can honestly say that the addition of an entry-level to Ferrari would significantly lessen my interest in Ferrari. Do you think Rolex should make a $200 watch?
For the V8 models they need at least 500 shp at the same or less weight to meet or beat the competition. Styling is fine with modest update. For the V12 models more shp would be OK but most importantly they need more exotic styling thats screams FERRARI from 100 ft rather than "what is that, a Japanese car?" The Enzo or halo class is fine as is but could use at least a weekend worth or luggage space. Not being able to take your $1m car on a weekend trip through the New England countryside with your honey is crazy and for me unacceptable. It's a very very rapid "day sailer"
Ferraris need to be looked like more as art. As a special hand built car so they can't even be compared to other cars. They need to get back to there roots. Hand make almost everything.
Clax you are the Rolex/Ferrari brand player that I"m most interested in hearing your point of veiw.... Porsche built the boxter and SUV to stay finainacial alive and independent... not because they wanted to. The Auto industry changes fast today... there are too many capable players. Ferrari is heading the same way, as the Auto Industry becomes more mature and competitive. At some point Ferrari has no choice... grow market share or be bought. Would you support Ferrari doing and entry-level to save itself from becoming a division under VW? exclusiveness or independence, which is more important?... if the changing Auto Industry made it necesssary to choose?
Umm dude - Ferrari is already owned by Fiat, this is why it will stay resolutely up market. Fiat->Alfa->Maserati->Ferrari as you go up market. Ferrari/Fiat is rumoured to want to exercise the option to buy back the 30 odd percent that is currently owned by Italian Investment banks.
I asked a business case study question. I am interrested in what you guys think? If your answer is Fiat? I find that interesting also. Could be a short term answer?, fiat and alfa are a mess? maserati is weak. Porsche answered it one way(boxter & suv), Lambo answered it another (VW Audi). The Market forces may yet make Ferrari answer this question also. I just wanted to know which way you'd go? exclusiveness or independence, which is more important?
Let me first clarify that I don't really consider myself a brand player, but more an appreciator of fine products. I still appreciate Porsche products (despite the dilution of their brand), but not nearly as much as Ferrari or Lamborghini. I think that it's safe to say that a person that spends $300K on a car does not want to see cars of the same brand every 10 minutes (as is the case with Boxsters in California or Florida, for example). I'm not certain that Ferrari only has 2 choices (grow market share or be bought). Considering that they are already in the hands of Fiat, choice number 2 is already a reality. If companies like Ferrari water down their marque, it is going to create a market opportunity for a company to steal a portion of the exclusive-car market (companies like Pagani, for example). I would not support the addition of an entry-level model under any conditions. I do not believe that a company needs to build a $50K vehicle to survive. As long as there is a demand for the product, and there is sufficient profit to sustain the company, why would there be a need for an entry-level vehicle? Ferrari needs to differentiate themselves from other companies, not mimick them. If the company cannot survive without building an entry-level vehicle, then there are surely other major problems in the company (for example production costs, designs not appealing, quality not up to snuff, performance not on par with competition, etc.).
Thanks for your insights. If Porsche wasn't forced into expanding market share to stay independant? Why do you think they did it? Any ideas?
You're right about Porsche - its about survival - in Autocar last week there's a story about a 4 door saloon 500hp rival for the M5 E55. The discussion about Ferrari is moot since its already in Fiat's hands. A much more likely scenario is Ferrari being sold by Fiat to someone else. Fiat is in a very large amount of trouble and following the Agnelli dynasty ending the charismatic leadership is gone. Ford might yet get to buy Ferrari...
Wouldn't Ferrari resurrecting the Dino line satisfy all concerned? Even when the Dino was new, everyone new it was produced by Ferrari. Yet being considerably less expensive didn't seem to hurt. One thing that I must point out is the extraordinary styling of the Dino. It is so universally loved that it has been taken under the Ferrari marque. If Ferrari were to resurrect another Dino, they must do better than the styling of the Enzo. I've read some headlines about the 612 Scaglietti being a return of the beautiful Ferrari. IMHO, the 612 looks like it could have come from a number of other companies. Maybe it's the requirements of the day that's driving all the manufacturers to the same conclusions but I think there is still a lot of fresh thinking around. I personally am intrigued by the AUREA PROTOTYPE. Check it out on www.ferraribuy.com. Just my 2 cents.
I'm the poser that wanted an SUV. Porsche of Ferrari? I don't care if it's costs 120K? It sure rips the pants of my dads SL!
That is not my interest. However, I do expect that in spending $300K that you will end up with a unique product. I don't live in California either. But, I use that locale as an example of what can happen with brand dilution. In order to build a $50K car, you better build a lot more than 10-15 thousand of them if you plan on keeping the company in a profitable situation. Sounds like you have a bad attitude towards F-car drivers. Sorry you feel that way. Funny thing is that sometimes no matter how logically you speak, and how objective your viewpoint is, as an F-car owner there is always somebody willing to label you as s2mikey has done here. No worries Mikey, I'm not surprised either.
I don't get the "brand dillution" comments. How will the brand be dilluted if in addition to the 4,500 units produced of the main line (i.e., 612, 575, 360) there's an added 5,000 units produced of an entry level model? How will ONE of the (estimated) 1,500 575's -- custom tailored to you assuming you're ordering new. How will YOUR car be dillute? It's not as if the Ferrari/Fiat/Masers don't share a parts bin already? And, how can the brand get any more dillute... hold on guys, I gotta answer my Ferrari cell phone, and type a message on my Ferrari key board and computer, then, later, with my ferrari camera, I'm gonna take a picture of my Ferrari in my driveway, while wearing my ferrari sweater, shoes, shorts , socks and hat under my Ferrari flag. Yeah, no sign of merchandising and diluttion here already, huh? ps: Porsche is still an ind. co., unlike Ferrari.
I agree, I like the current front engine 12s, but nothing says Ferrari like a mid engine 12 cylinder!
Hubert, You'd be wearing your Ferrari cologne while you do all that, right? p.s. If they re-introduced the Dino, I'd be the first in line to buy one.
No way would I want Ferrari to make a car in the 50K to 75K range. I agree totally with the marque being deluted and thats precisely why I wouldn't spend $400K for a Carrera GT but I would spend double that amount on an Enzo. Its not being a snob at all or should a Timex that probably keeps time better then my Rolex cost $10,000. When you have a car obtainable by the masses there isn't anyway to command top dollar for your other products. Also for anyone wanting Ferrari to raise there prices, are you nuts? They cost plenty and I like the waiting list, it assures people with patience excellent often unheard of re-sale values, and if you dont want to wait make me an offer. Read up on future models wait your turn and keep your deposit at the dealer for your next one. Its simple.
One more thing Luca if your reading any of this please replace the 575 with an in your face exotic that will eat Lambos for lunch.