Ferrari makes $80k per car!! | FerrariChat

Ferrari makes $80k per car!!

Discussion in 'Ferrari Discussion (not model specific)' started by PA Wolfpacker, Aug 8, 2018.

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  1. PA Wolfpacker

    PA Wolfpacker Formula Junior

    Aug 19, 2007
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  2. Texas Forever

    Texas Forever Seven Time F1 World Champ
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    Define costs. For example, does this number include an accrual for estimated warranty costs?
     
  3. jcurry

    jcurry Two Time F1 World Champ
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    Good!
     
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  4. willrace

    willrace Three Time F1 World Champ
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    At least it's an actual something. They make around $4,800 on every $5,000 Classiche paper for a car they sold decades ago, and that's not even for a mechanical/maintenance service.
     
  5. Dave rocks

    Dave rocks F1 World Champ
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    Gross margin of what, 20%? Seems right. Gross is NOT net :)
     
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  6. Ski Bum

    Ski Bum Formula 3

    Jun 19, 2012
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    This may be a misleading article. It does not appear to be calculating the margin per vehicle; rather, it seems to be taking the firm's net profits and dividing by the number of vehicles sold. All types of non-vehicle revenues and expenses are getting mixed in.
     
  7. paulchua

    paulchua Cat Herder
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    About 74% of the net revenue comes from cars so far for 1H 2018

    Assuming the same ratio - I come up with a net profit of about 47K Euro per car net (*have to pay the tax man)
     
  8. yelcab

    yelcab F1 World Champ
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    Yes, a bit misleading but that is ok. They were using the metric of company profit per car sold among similar companies whose main business is producing and selling cars and arrive at who is the most profitable per unit of car. For the exact gross profit of each car sold, you can look up the numbers and do your own calculation. They are a public company.

    $80,000 per car ! We just saw the power of the brand.
     
  9. LARRYH

    LARRYH F1 Veteran
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    A gross profit of around 20% for a luxury brand like this seems about right to me ... wait till you find out what the margin to the dealer is...these are production cars selling for 400K throw in a few 600k productions and sell a ton of t-shirts for 125 each and some 50 watches for 300 and they should do just fine...
     
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  10. tbakowsky

    tbakowsky F1 World Champ
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    I think the 80k gross profit number is on the low side. 80k per car I don't think would even cover development costs for a clean sheet model. For the small amount of cars they build, I would think 150k gross would be a minimum number to barely make it profitable. Could be wrong..tho..which is not unusual.
     
  11. TheMayor

    TheMayor Nine Time F1 World Champ
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    Its nothing compared to Apple.

    Honestly, I question how profitable it really is when you look at all the investment and marketing and engineering and government regulations and lawyers and approvals etc etc it takes to bring in a new car into the market.

    The life span of the 458/ 488 is probably 20K cars. For the others, a lot less.

    Ford just made it's 10 millionth Mustang. Now you're talking some serious money.
     
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  12. Glassman

    Glassman F1 World Champ
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    Gross profit to operate and make a desired profit is determined by the manufacturer and their market. Not anyone else.
     
  13. MrF355

    MrF355 Formula Junior

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    We all know that we pay a huge premium to acquire a Ferrari and a premium in parts and servicing to maintain our thouroughbred in top condition. We know (or should know) to enter the world of Ferrari comes at a premium price. The article really is telling us what we already know they have just done their own calculation to arrive at a per vehicle profit.
     
  14. anunakki

    anunakki Seven Time F1 World Champ
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    i would hope they make that much per car. They make a great product and deserve it.

    I cant imagine anyone is surprised by this
     
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  15. AceMaster

    AceMaster Three Time F1 World Champ

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    I thought they would make more than that....$80k seems awfully low.
     
  16. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

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    That's pretty bad considering how much of a loyal following they have for gross %. Net is probably 10-12% at best? They can do better than that with that brand.
     
  17. Mikael-F360

    Mikael-F360 Formula Junior

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    I don't mind if the profit is going directly to the manufacturer like it should. But paying the dealer a huge cut is kinda wrong. And especially paying enormous taxes to the government when importing a car is the worst. They did nothing to deserve that money. Manufacturer did!
     
  18. arizonaitalian

    arizonaitalian F1 World Champ
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    #18 arizonaitalian, Aug 9, 2018
    Last edited: Aug 9, 2018
    Pretty sure this metric is total company “profit” divided by number of cars. (They say operating profit, but it’s unclear if that is pre or post tax and I’m too lazy to look it up)

    It is NOT gross profit per car (which is higher of course).

    And, as pointed out already, it included profits (and losses) of their other businesses and product lines.

    I’m sure their gross profit per car metric is available someplace but I’m not interested enough to look it up.

    Regardless the margin percentages implied here are not very high, relative to other luxury brands or even whole industries. The ROI in autos is pretty crappy in general.
     
  19. Ski Bum

    Ski Bum Formula 3

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    Ferrari has very substantial revenues from the licensing of its brand, as well as extraordinary expenses for its racing program. The firms with which Ferrari is being compared in the article derive far smaller percentages of their profits from licensing and dedicate a far smaller percentage of their expenses to racing. It's just not a meaningful comparison.
     
  20. yelcab

    yelcab F1 World Champ
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    Why is it not a meaningful comparison? They are both car companies. Ferrari spends their marketing dollars doing racing while BMW spends their marketing dollars running car ads? Both marketing activities promote the brands and the products. In the end, they do that to sell cars. So, the total company profit per car is very meaningful to measure the efficiency of their spending, their R&D, their brand power.
     
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  21. Lotaz

    Lotaz Formula 3

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  22. anunakki

    anunakki Seven Time F1 World Champ
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    The real issue here is that anyone who has enough money to buy a Ferrari would complain about a business making a healthy profit.
     
  23. LVP488

    LVP488 F1 Rookie

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    I could also write such "studies" like that by browsing the web and using a calculator :)
    http://corporate.ferrari.com/en/2017-another-record-year-0 (official 2017 Ferrari report)
    net profit €537M, cars sold 8,398 - net profit per car sold = €63,944 i.e. $72,945
    The current number could be better due to an improved product mix (with the 812 production now completely on).
    All these figures are non-GAAP though...
     
  24. I'm 360 Canuck

    I'm 360 Canuck Formula 3

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    And yet, I’d rather own Ferrari stock than Ford stock.
     
  25. Skiday

    Skiday Karting

    Feb 22, 2016
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    My '97 355 was about £87,000 when new and my '00 Fiat Coupé 20 valve turbo was about £27,000 when new. My Coupé was manufactured by Pininfarina and much of the car, like the interior, is made to very much the same standard (sticky dash and all - some parts are even the same parts) and I don't think I could cover 20 miles of 'B' road any quicker in the 355 - although I grant that a racing driver would do better on the track in the 355. So standing them side by side (as new cars) you have to conclude the Fiat is by far the better car pound for pound. The reason for the huge difference is that Fiat made a loss on every Coupé they made and Ferrari mad a big fat profit. But what's the point in making a loss on new cars? You will only send your business down the pan. All power to Ferrari's elbow (although if we're talking net profit, perhaps it is a bit $80k is a bit large.
     

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