Maranello, IT. --(BUSINESS WIRE)-- April 1, 2004-- Ferrari has today announced what can only be described as a major change in their strategy. With current massive over-production in the car industry worldwide, affecting even the very high-end luxury and exotic car market, Fiat, Ferrari s parent organization, have forced Ferrari to look at their current model line up with a radical eye on the future and continuing its trend of profitability, thereby assisting to abate the hemorrhaging of red ink at Fiat. At a packed press conference in Modena, spokeswoman Pilar Lofo announced that Ferrari, with immediate effect, will be discontinuing the manufacture of their 575 model range, putting all of the production capacity this frees into running out the existing forward orders of their 360 range. The 360 model range will also be trimmed to include only the 360 Spider and the 360 Challenge Stradale, with all models only being available with Ferraris racing derived F1 gearbox. Production of the 612 Scaglietti will not be affected, but prices of the ultra-luxurious 2+2 have been increased by 23.000 euros. Production of the 360 replacement, the 420 Monza, has also been announced with first shipments due before the end of 2004. The 420 Monza is a 2+2 seater, mid engine sports car based largely on the existing 360 Modena but powered by a 4.2 litre Maserati engine. Designed to be a volume production sports car, the addition of a small rear seat will enable it to better compete against the Porsche 911 line. Prices have been announced to start at around 190.000 euros. Most shockingly to industry analysts, to reflect Fiat's change in global strategy and the desire to build volume and profitability in the Maserati subsidiary, all 2005 Maserati Coupés, Spyders and the Quattroporte will be branded as Ferraris, complete with the legendary Cavallino Rampante, and the Maserati name will be retired. Ferrari president Luca di Montezemolo stated, "Enzo Ferrari himself authorized the sale of Dinos as 'Ferraris' to increase sales volume and ensure the continued funding of the Ferrari Formula 1 team. In order to afford our F1 'dream team' of Messrs. Schumacher, Barichello, Byrne, Brawn and Todt through 2006, we must generate additional profit from automobile sales. We recognize the power of the Ferrari brand throughout the world, and the appeal to enthusiasts. Accordingly, the sale of these fast, stylish Italian automobiles as Ferraris is entirely appropriate, and we expect that sales and profits will increase by no less than 25-30% per annum over the next two years."
