Earlier Tuesday, Montezemolo said the depreciation of the dollar would weigh on Ferrari's 2003 results. Ferrari does 40% of its sales in the U.S. currency while proceeds from the Formula One racing circuit, including sponsorship fees, are also denominated in the dollar. Montezemolo, who is also on the board of Fiat, said he didn't expect particularly robust sales growth in 2004.
So, do you think Ferrari will raise prices despite the growing glut of expensive cars or will they tough it out and take the hit? It doesn't look like the Euro will be headed down in the near term of, say, the next year or two. However, the Fed is sending out clues that "inflation" is becoming a problem again, after spending all their bullets in recent year shooting down deflation fears. So maybe interest rates and inflation will tick up after the election, which should start bring the Euro down, or is it up? I'm glad that I don't have to make these calls. Although, for one or two Enzos and a couple of F-40s and, maybe a really sharp 275 GTS, I'd be happy to stick my neck on the chopping block. DrTax
I think the price rise that goes into effect in a few days may be the first of several. I think the fed won't do anything before the US elections. Interesting times.
hard to believe that the fiat corp would not be hedging currencies in the forward markets......seems to me, this is a good camouflage for less than stellar results, and price increases in their number one market. time to open a ferrari plant in arkansas and make an suv
Ross P is hedged through 07 but VW took a huge hit by being under hedged. It looks like F isn't hedged enough. Best
That's already happened. In August 2003 an 860 Monza was bought by a Dutchman at Pebble Beach. The car was sold at an record price, but the guy paid (of course) in Euros. Which means he actually paid 10% less. I really hope more of this kind of cars will come to Europe.
You're right about that I was there. My friend with whom I share a shop bid on that car but with the strong euro and that Dutch Guy bidding so strongly he dropped out. BTW that is a beautiful car.
I heard that he got a standing ovation when he was the higgest bidder. Is this right? He also have a nice 250TDF and a nice Van Gogh painting. He's a Dutch guy, but he should live here in Belgium. Do you know if this car have already been in Europe, because I saw this car is also at Cavallino now.
I don't know where it's going to race but Bill Noon said it would be. It sounded great and my friend said it drove very well. It seemed to be fully restored.
The car was announced to be displayed at the Essen Motor Show in December 2003. But it wasn't there :-( He already participated in the Mille Miglia with his 250TDF. Maybe this year with the 860M.
