Whew, what a relief: Fiat-Chrysler CEO Sergio Marchionne has told CNBC that Ferrari, which is now below his direct manage, “is in very good hands with FCA,” adding, “As long as we don’t screw up the DNA of Ferrari.”
The worry among Ferraristi is that Sergio, coming from the globe of mass production, would try to go all Lamborghini on the prancing horse and expand production to meet ever-growing demand. Ferrari has in no way operated as a regular automotive brand might, where they sell as many vehicles as possible in the interest of profits and all that jazz. Ferrari, on the other hand, has actively restricted production and kept rates extremely high—resulting in huge profits anyway. In doing so, the business has engendered unparalleled demand not only for its pricey vehicles, but also for Scuderia-branded merchandise and the life style its goods support.
Outgoing Ferrari chief Luca Di Montezemolo capped production at 7000 cars per year in a bid to hold costs on new and employed Ferraris higher and limit the situations of 1 owner bumping into one more with the very same automobile. (God forbid, correct?) Marchionne desires to at some point up production to 10,000 vehicles per year to serve the rising quantity of mega-wealthy humans on the planet but has settled upon a much less frightful 7200 units in the close to term. This, of course, is where Ferrari fans get upset—to them, upping production risks screwing up Ferrari’s DNA.
Ultimately, Marchionne has some leeway right here, simply because as tempting as it may possibly be to expand sales, Ferrari in its existing form is carrying out fairly well. And that’s very good news for Fiat-Chrysler: Regardless of moving a pittance of automobiles every year compared to all round FCA sales, Ferrari contributes 12 percent of the conglomerate’s annual operating profit, according to the CNBC story. We’ll need to wait and see what Marchionne’s next move is, but we’d wager that Ferrari fans have small to be concerned about—at least until FCA’s general organization flags or its coffers start to empty.
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Sergio Marchionne Promises Not to Screw Up Ferrari, Plans to Increase Production
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