The kiss of death that Ferrari is in danger of getting...

When Lamborghini switched from their single-model policy, it was not for the better. Two reasons: first, they lost the mystique which went with producing a single model of such stature that it could carry the marque year after year while holding the competition at bay, in design and supercar status; second, the decision to produce an entry-level model simply shows Lambo to have bowed to market pressure. Had they gone back to something truly different like their Hummer-like jeep, it might have been acceptable in that the jeep was aimed at quite a seperate market. You did not, after all, go from the LM...to a Countach whereas now, you might 'upgrade' from a Gaillardo to a Murcielago.

Ferrari has followed a different course over the years, more or less pursuing three evolutionary strands: the V8 racer, the 12 GT and a 2+2 tourer. There have been successes and failures in design and performance from model to model, but as long as Ferrari do not try to develop yet another line, they should remain true to type.

As an old Jaguar fan, I am disappointed to see Jag reposition itself to compete with the BMW market. From the simple twin-track evolution of coupe and saloon, there is now a bewildering array for every conceivable niche. Last month, Jaguar launched its diesel estate here in the UK. Next stop, SUV ?

The danger for Jaguar is that several decades of building up the prestige of a race-bred car will now dissolve, slowly maybe, but irredeemably to the point where it will be impossible to recapture the mystique.

Oddly enough, the best survivor over the decades has been the Corvette although admittedly only as a division of a much larger corporation. At least it was left alone through poor years and good.

It's not just in Wall Street and the City of London that instant returns are required, the frenzy seems to have captured boardrooms of once-grand manufacturers.

 

I do agree, Ferrari has the brand recognition and the racing heritage that is
not a thing of the past.
The entry level Ferrari is a pre-owned one.

 

I have to disagree with this. I cancelled my CS order Jim G. had a CS on the boat. We both bought Lamborghinis. I've owned 7 Ferraris and still have deposit on a Spider (over 2 years now.. this is stupid). Open minded
performance car buyers are being swayed away from Ferrari.

 

Rene
If FIAT hadn't bought Ferrari, Ferrari would not exist today.
If Ford had not bought Jaguar, Jaguar would not exist today.
If we (C) hadn't bought Lambo or VW didn't own it today it would no longer exist.
The same holds true of Aston, and Bugatti.
Economic reality is what it causes some sad things The x type for example.
That said today Ferrari is quite alive and is probably more viable than it's parent.
As Bob said: "Don't speak too soon for the wheel's still in spin..."

 

They very well may be but it doesn't matter. Ferrari call sell EVERY car it can make. That is not true of Lambo. Murcies remain unsold and VW was hoping to get to 5,000 total production. I very much doubt they'll ever sell 5,000 Lambo's a year.

 

Thats the kinda attitude that killed Maser, Aston Martin, Jaguar, etc...........

None of these companies reputations are a shadow of their former selves. You can only live on reputation so long.........

Having said that, ferrari do have F1, but that can change in a split second. Look at what happened to Mclaren or Williams.

(Dont forget, Schumi is leaving this season or next, and IMO his superiority over the rest of the field has been key to Ferrari's success. Will they be walking away with Titles with a mere mortal in the cockpit?).

 

Ferrari's F1 dry spell in the 80's and 90's didn't kill the company.

Don't forget that they've had success with the 550/575 race cars in privateer hands. The 360GT have won championships too.

 

Jim:

I'm sure you have the same press releases that I have. Here are Lamborghini's sales figures for the last several years (they came from Audi directly, not magazine quotes):

2003 1305 (425 Murcis and 890 Gallardos)
2002 424
2001 280
2000 291
1999 252
1963-1998 ~8000

I agree, I don't think the market can support the sales goal, well, not this decade.

Cheers,
Erik

 

Ferrari will always make 1 less car than there are buyers. It's really simple. Keep demand up and they will always be in the black. If Ferrari wanted to make 50,000 cars, they could, but they don't need to so they don't.

Their volume models are called Maseratis. I believe volume will stay roughly where it is today, moving up very slightly each year. If you don't like it....then don't put your deposit down and don't put your name on the list. When the waiting lists dry up, they will release something newer, faster and better and the list will start up again.

As for all of the used cars on the market....those are your entry level Ferrari's however Ferrari makes very little money on used cars, aside from service. Their hope is that some day you want to upgrade your 308/328/348 for a new Ferrari and then they start the whole process over again.

 

The Diablo was THE FIRST lamborghini single model policy, and LMoo2's were still being made during Diablo production...The countach years (jalpa and LMoo2)
The miura years (Islero Espada Urraco...oh Jarama...)

 

I agree with you on this. Not everyone has the opportunity to buy a Ferrari. Whether it be the the list, Lambos etc you'll have 500 buyers and 499 cars.

As for the Maseratis comment, thats true too. You dont want to wait for a Ferrari, buy a Maserati.

And the same for used cars. You buy a used Ferrari and you get a taste of what they had then and imagine what they have now, and your like man, I want a new Ferrari.

 

If I was Ferrari (and I’m ticked that I’m not), I wouldn’t lose a moment of sleep over any of the Euro manufactures. Sorry Alan and Banana Man, Lambo, Audi, VW, Alfa, or even Porsche will never be real competition for Ferrari. The sad truth is the Euro companies have hit a wall when it comes to production technologies. Porsche has already outsourced to Norway. Ten years from now, who knows? Maybe China?

Ford and Chevy could give Ferrari a run for its money if they really wanted to ramp it up. The Ford GT looks like a killer, and it wouldn’t take much for Chevy to bring the Corvette up to snuff. Fortunately for Ferrari, though, both these companies have way more important problems to worry about than selling a few thousand sports cars a year.

No, I predict that Ferrari’s real problem during the next generation of cars will be the combination of (1) the aging of its customer base, (2) the Internet and (3) the Japanese.

Because the aging point is self explanatory, let’s skip that one. But why will the Interest be a problem? Simple, the Internet has already caused a dramatic drop in information costs and the slope of this trend will continue to increase.

So what? Let’s assume that are interested in buying a Ferrari for $200,000. Well, with Google and a few hours of time, you can quickly find out the available alternatives, e.g. a Ford GT for $140,000. For you master of the universe types, saving $60,000 is chump change, but for the rest of us, well...

Next you stumble across Ferrari Chat where you discover that the car of your dreams is having a little problem. Namely, it tends to get stuck in neutral, even though the tranny is still engaged. You can’t go because it is stuck in neutral, and you can’t tow because the transmission is engaged. Now, how good do you feel about your dream car?

I recently heard where a Porsche new car sales manager complained that the WWW has absolutely ruined the car bidness. Most of his buyers come in knowing more about his cars than he does!

Now, let’s add to this mix the fact that the Japanese are relentless when it comes seeking out potential niche markets. Unlike Ford and GM, the Japanese are capable of expanding into to very small niche markets, making a bucketful of money, and getting out before the door closes. Take a look at Honda and how it dominates the motorcycle market. It appears that there is no potential market that is too small. Even more amazing, Honda clobbers these small markets with products that are the best of their class.

Phoney baloney, you say? Didn’t the NXS prove that the Japanese can’t beat Ferrari at its own game?

Nope, the truth is that Honda wasn’t even trying with the NXS. If Honda or Toyota ever really get serious about high-end sports cars, watch out. You think that Ford did a great job reverse engineering the Modena? Watch what happens when the Japanese reverse engineer the Enzo. 700 hp, a 700 pound flat-line torque curve, brakes that pop your eyes out if you sneeze, 500 pounds less weight, a built-in flex chassis that can be custom tuned, independently adjustable suspensions that can be adjusted on the fly, traction control that is more than one step ahead of you, and on, and on, and on. Then to top it off, they give Pininfarina unlimited hours in the wind tunnel to design the body.

All this for, say, $350,000.

The line starts over there...

 

Really? Why are dealers begging to dump 575's?

 

I'd wager they do pretty well on service parts for the used cars...

 

Napolis, you're right that without buy-outs by the big manufacturers, Ferrari et al might well have failed. Having provided the capital, the new owners then expect an increase in quantity if not always in quality, with the necessary exception of reliability. Small, slowly evolving marques where a great deal of time is allocated to thinking through development, now have to speed up and this is not always easy to do.

AllOutExotics, I stand corrected. Maybe because from the tail end of the Countach, through the Diablo (my favourite design) and into the early phase of the Murcielago, Lamborghini seemed to manage so well on a single supercar to carry its prestige, and in my mind I passed over the LM as an oddity.

Which reminds me that, in my fifties and finally the owner of a Ferrari (TR), I am spooked by the comments on the aging profile of Ferrari owners. Ok, we babyboomers wish to relive our youth, supercar by day and viagra by night, but surely the cost of Ferraris in the past (say, prior to the economic boom of the eighties) put them out of the reach of younger drivers ?

 

Alan
You're quite right about the 575 and the 456 and you very may be right about the 612. These models will not make or break Ferrari. Lambo as I see it has similar problems. Their top model the 40th Murcie is not selling indeed neither did their 30th Diablio. The Gallardo isn't selling at the level many of us including me thought it would. This has nothing to do with the car. I agree it pretty cool and as Wayne has pointed out it's a great driver. I like the Murcie very much and if it had interior storage room I'd buy one. (I really don't need another Sunday car) . Ferrari can and does sell 4500 cars a year. I very much doubt Lambo will reach those levels in the foreseeable future and if it doesn't it will be a huge loss for VW.

 

Salesman :: Knowledge; Anyone else see the humor of using both these words in the same sentance.

But to address the point: if his customers are more knowledgeable than him, why does he not spend his idel times surfing the web and <gasp> learning instead of standing around the water cooler drinking coffee.

I will be the first to acknowledge that the NSX sent the 348 back to the drawing boards only to emerge a couple years later as the F355. However, the F355 was never surpassed by the NSX, and now we are late in the life of the F355 successor (360) and NSX has not struck back. To the casual observer, this looks like a one hit wonder for the NSX.

I believe Honda can do whatever it wants, Honda just doesn't want to dominate the market for 500 SuperNSXs per year.

 

Maybe not but I thought the 348 sales early 90's were pretty sad prior to the 355 turning up. It will be interesting to see how the road car sales fare if Ferrari has a spell mid pack in F1.