By Sara Gay Forden and Tommaso Ebhardt May 11 (Bloomberg) -- Ferrari SpA, the maker of $228,000 California supercars, is seeking to idle production and eliminate 9 percent of its workforce after sister brand Maserati reduced orders for engines. Workers walked out for four hours today because Ferrari wants to cut 120 office positions and 150 factory jobs in exchange for the last payment of a 2009 bonus due last month, CGIL union official Giordano Fiorani said today in a telephone interview. The sports-car maker employs about 3,000 people. Ferrari, Fiat SpAs most profitable brand, plans to idle a factory in Maranello, Italy, by laying off about 600 workers for a week starting May 17, Fiorani said. Ferrari is scaling back because of fewer orders from Fiats Maserati brand, for which Ferrari makes engines, said Ferrari spokesman Stefano Lai, who confirmed the plans to lower headcount and idle production. Even though Ferraris margins are very high, they wanted to do better, said Massimo Vecchio, an automotive analyst at Mediobanca SpA in Milan. The recovery is moving very slowly. Ferrari is slashing 2010 production targets to 11,000 vehicles from 20,000, CGIL unions Fiorani said. Ferrari never planned to make 20,000 cars this year and will maintain production at about 6,000 vehicles, similar to last years output, Lai said. The company intends to outsource some jobs to local companies and offer some employees early retirement, Lai said. Non Core Operations Ferrari made engines for about 4,500 Maseratis last year, down from almost 9,000 in 2008. Lai declined to say how many Maserati engines will be made this year. In an e-mailed statement, Ferrari said that the company is focusing its resources on activities such as product development, technological innovation and reaching new customers and has decided to outsource non-core operations. This will allow the carmaker to maintain about 100 contract workers, Ferrari said. Ferrari has to respond to market demands that rise and fall in an ever less-predictable fashion, it said. Fiat Chief Executive Officer Sergio Marchionne unveiled a new five-year plan for Ferrari and Maserati April 21, along with new targets for all the group brands, calling for the two luxury carmakers to almost double revenue to about 4 billion euros by 2014 by adding products and widening model ranges. Trading Profit Ferraris first-quarter trading profit declined 28 percent to 39 million euros ($50 million), the company said April 21. Sales of the new F458 model, which is priced at 197,000 euros, provided a limited contribution in the period, the company said. Trading profit for 2009 fell 30 percent to 238 million euros as sales dropped 7.4 percent to 1.8 billion euros. Ferrari sold 6,294 cars last year. Ferrari has proposed to pay the bonuses if we accept the job cuts, Fiorani said. We are ready to discuss layoffs and reorganization, as there is a real cut in production, but we dont understand their rigidity. Turin, Italy-based Fiat rose 21 cents, or 2.3 percent, to 9.53 euros at the close of trading in Milan. The stock is down 7 percent this year, valuing the carmaker at 11.2 billion euros. For Related News and Information: Fiat shares versus indexes: F IM <Equity> COMP D <GO> Ferrari company news: FERI IM <Equity> CN <GO> Top transport stories: TRNT <GO> --Editors: David Risser, Kenneth Wong
250 GTO 350 Can AM 250 TDF 330 P 365 P 2/3 250 LM 365 GBT Comp 512BBLM 312 T3 Dino Tasman 275 GTB 195S 250 MM 250 GT Interim 250 SWB 250 PF Spyder 250 SA 250 GTL are a few of the cars I've been offered this month. There are a LOT more I've been offered but for privacy reason's I'm leaving them off of this list. For the right price I'm sure these cars can find buyers but I do feel there are a LOT of Vintage cars for sale at this time. Is the Vintage Market totally unrelated to the article Michael posted? I'm not so sure. Ferrari went from a Company that sold 3K cars a year and raced Sports Cars to a Company with excess capacity that makes a great deal of it's "Operating Profit" from Licensing it's Logo. IMHO this change will effect the Perception of Ferrari and even it's Vintage Cars. Art is Art but when Art becomes commerce things change.
Jim, I agree, completely, and will say, again, that I think that they are doing great harm to themselves by "cheapening" the brand with the licensing they are doing. In my opinion, they are trading their mystique for the profits of this year. George
When I think about Bentley, I don't think of those audis they sell now, I think of the car Mr Bond drove. When I see a new Bentley, I wonder if the owner is a professional athlete and has lots of classy tattoos, and when I see an old Bentley, I wonder if the owner smokes a pipe. The market for old Ferraris is driven by their limited numbers, their beauty, their history, and the fact that they're documented and there are experts to tell you what's what (see M Massini and T Shaughnessy). If I had the coin to spend, I could do some research and be somewhat confident that what I'm buying is what I think I'm buying, and that adds tremendous value to the market. I'd also be more confident in buying an old Ferrari that I'd be able to find experts in making it work properly, and find spares, and such, so that I could actually enjoy it. This is as opposed to if I wanted to find support for my ASA or my Lancia. Now, the market for old ferraris is in the same world as the one that's wondering about sovereign debt, peak oil, inflation, deflation, and space herpies, so it shouldn't be any wonder that prices are down and inventory is up, but in the long term, I don't think it would matter much even if Ferrari SPA vanished tomorrow, except that maybe in their liquidation someone might buy up the old records and make them easier to get a hold of. (Of course, it's more likely the old records would just "vanish" and you'd have to know someone who knows someone to get a peek...)
Heh, when I see a new Ferrari, I think of Supergoofy as that's what most drivers dress like... Best wishes, Kare
I agree wholeheartedly re: the cheapening of the marque that Barbie and her lot have caused. When I look at the pictures in the Mille Miglia thread, I have hope that there is still a sizable group of people of means who "get it" when it comes to the old cars that created Ferrari's glory and made all the retail nonsense possible in the first place. Image Unavailable, Please Login
The new cars and the new owners are a bigger problem than the admitedly very excessive merchandising.
Jim, can`t agree more! When I got interested in those cars, in the early 70ies, a Ferrari was something VERY special and here in Germany you could hardly see more than one or two per year! And I am pretty sure that car-guys of this "early" period in the US like Ed Niles will agree on this. Today I see five (!) modern Ferraris -all in red!- in the street where I live! Ferrari-Germany contacted some time ago the German traffic-authorities, requesting infos of how many Ferraris are within a circle of 80 miles around my city. The answer was ....2,000! Ciao! Walter
I would say the bigger problem here is for Maserati - Ferrari is dropping production on engines supplied to Maserati not on new Ferrari cars being produced. There is still a waiting list for the new F458 in the UK of over 2 years - several new cars i am aware of have traded at premiums up to 40k euros over list price - so demand is there, supply is not. If there is a core problem Ferrari would increase production of the model in demand, satisfy the waiting list and drive the flippers out of the market - good for all end users. Or the dream - employ the 150 Ferrari workers in the reproduction of part for our Vintage Ferraris, could you imagine!!!!!!!!
And I believe they are changing in ways we haven't seen before leading me to wonder where things are headed. I expect a whole new set of definitions to some old terms.
And now that I am old, I have an intense desire to enjoy one of the few sections on Fchat as yet uncontaminated by insular and repetitious US-centered political ranting.
So true! As I hear everyday complaints, problems, goaststories, wise advises of customers and clients I like the vintage part of F-chat as a technical and enjoyable part of this site. If I want to read about economy, Greece and future invests I have many other very boring sources..... Julio, I couldnt have formulated it any better.. Ciao Oscar ps being old is a state of mind.
julio, you're missing the point. we are being told there is a great recovery occurring, yet this article demonstrates that industries are cutting back. is the article a figment of somenes imagination? is the rioting in greece someones imagination? THINGS ARE A CHANGING. now who's living in an insular world? ed
OK boys, we're suppose to be talking about how 'events' will affect the vintage Ferrari market here...that's all. SO, since I've seen alot of cars parked on the market for great lengths of time, either people will continue to sit on them or prices will drop to get them moving, I'd say.
Edward - please refrain from commenting on political aspects of the discussion. It is not that they're not relevant, but they lead to unresolvable disputes. There is a place for this in P&R, not here.
With a few exceptions (some of whom are members here and have a pleasing blend of new and vintage Ferraris in their garages) owners of the newer cars don't seem to have any interest in or appreciation for the history or heritage of Ferrari. I frankly can't fault Ferrari for this. The factory seems to have an interest (if somewhat belated) in preserving and even celebrating its heritage. Or, a cynic might say it's only because they've figured out how to make money from it. The recent display of a fake 250 California at the Galleria would seem to confirm that notion. As far as the merchandising is concerned, I find 99% of it to be repulsive and crass. Jack.
When the Greg Garrison Series II 410 Superamerica, # 0671 SA was re-created some retired workers came back to help again with this special Ferrari. It is too bad that older workers with years of experience are cast aside to save a few euros at the bottom line... CH
This is a concept I have spent a lot of time thinking about, and my emotions seem to vary. Sometimes dramatically. Ferrari of today is definitely different that Ferrari of the past. Both in leadership, and in the world in which it exists. Part of me gets angry when I see all of the Ferrari branding. At other times I accept it. Ferrari was always first and foremost about racing. But racing as Ferrari does it now is nothing like it was in the 60s. So I ask myself the question: what would EF do? He'd probably do the same thing he did then: he'd hire other people to build stuff to sell to people he didn't care anything about, and then use the money to race and win at any cost. Which is to say the company is following the plan quite well. I don't think Enzo would care that his logo was on cologne. I also don't think he would care too much about the people who might buy it. In the long run, I think the changes will shore up the value of the vintage market. Because they don't make 'em like they used to today, and they sure as hell aren't going to make 'em like that in the future. You will never be able to buy a modern car that raced in an endurance race and drive it on the road (unless it is from 24 hours of Lemons). And the true Ferrari race cars of today have limited use on the track (anyone here capable of driving a modern F1 car?). The allure for many will increase even more, even as Ferrari finds its place in the fast and furious new world. Wait until "Go Like Hell" hits theaters. That will be interesting.
