When a new dealer opens, do other dealers lose allocation?

Huh? They are producing more cars now than ever.

 

Its funny I always assumed there was a fixed allocation for the entire country and when new dealerships open up, cars are pulled from existing dealerships. I was on the phone with a sales guy from ferrari of san francisco and he said they have not lost any allocation to the new dealership in silicon valley. It was weird when I asked a few more quetions he started saying he wasnt at liberty to discuss that, like I was asking questions about some top secret weapon. The dealership in ohio is not new, the existing dealership just got a new building. There are three new dealerships, las vegas, new jersey and silicon valley.

 

There's only so many of the 5,000 or so they produce to go around so, you'd think somethings gotta give.

Here's what Ferrari director Amedeo had to say at Frankfurt:

"Ferrari director Feliseo Amedeo then took to the stage and told the assembled press of the Prancing Horse marque's continuing commercial successes around the globe, and that this avenue of expansion would help to drive them forward into expanding new markets. Singling out the luxurious new showroom just opened in Beijing, as an example, Amedeo targeted doubling Chinese sales next year. He also wishes to bring the customer waiting list anywhere for a new purchase down to 22 months, while production this year will move above the 5,000 units per year threshold (last year Ferrari sold 4,975 cars). To achieve this expansion, Amedeo revealed that they are presently locked in discussions with the unions to have Maranello working on selected weekends."

Luca has said the IPO is on hold too.

 

Also the run higher prices of the newer models make sit possible to make more money on less volume.

 

Hmmm,

The way the world is going they might just be making them in China soon!



Steve

 

Keep in mind that FoSF is a factory-owned dealership, so it's not suprising you didn't get far when asking (what they perceived to be) nosy questions.

 

In very rough numbers, I believe they make about 1500 cars for the USA. There are (again, roughly) 30 dealerships here; thus, about 50 cars per. So it isn't a big production boost to keep the allocations constant when there are new openings. Three new dealers would add about 150 cars.

 

They only plan to build another 25 cars this year over last if the above is accurate. My guess is they plan to sneak the production numbers up in the not too distant future. If you've seen their production facilities you'd think they were making at least twice the cars.

 

I don't necessarily read it that way. The statement was "production this year will move above the 5,000 units per year threshold (last year Ferrari sold 4,975 cars)". Above 5000 could be a lot (or a little) more.

 

That's true. Maybe this is how they'll be able to sneak the numbers up without everyone thinking that they're becoming mass produced.