Hoovey689

iTrader: (16)

Ferrari looking to become even more exclusive

While most automakers are clawing and scratching for every possible sale, it sounds like Ferrari is content in losing a few potential customers in the name of better exclusivity and higher profits. Autocar reports that Ferrari chairman Luca di Montezemolo recently stated that the Italian automaker hopes to sell fewer than 7,000 units globally in 2013 compared to last year's tally of 7,318.

As a part of this plan, Ferrari will be slowing its production lines and trying to create a balanced market for its cars in the US, the Middle East, Europe and China – the latter two being the automaker's biggest markets. Montezemolo also said that Ferrari would not be expanding its model lineup with SUVs, sedans or small cars.

http://www.autoblog.com/2013/05/09/f...ore-exclusive/

gengar

Saw this on WSJ yesterday.

Pretty funny coming from a brand that decided to adopt a Maserati as its entry-level model.

Ferrari apparently wants to be like the automotive diamond. Inflate prices and rely on marketing demand by artificially limiting supply. Like their treachery and deceptions in auto mag tests, it almost seems like they don't believe people actually want their products for what they are.

Hoovey689

iTrader: (16)

Regardless of what they do. That badge holds a lot of power, and they know that

All hail

Slvr surfr

iTrader: (1)

Actually thats what all exotic car makers should do imo. Not chase sales by going downstream/mainstream. Mercedes were once exclusive but now there's one for every budget. From 200k all the way down to the 30's you can have a Benz. Ferrari, keep it tight and right. (Thats's what he said). lol

Stormwind

Slime ball corporate executive to layman translation : Globoal demand is down and we are cutting production numbers.

Vladi

Im sure they will sell a lot more hats and shirts that way

As long as they are backed up by government they can do whatever they want and they know that. If they ever go private they would introduce sub California model or they would just have to sell more hats and shirts, like a lot more.

rominl

iTrader: (4)

pretty sad imho. just seems to me trying to control the market much like how they control the reviews and test results.

to start, why not take away the california...

LexFather

First thing I was thinking. They made an entry level model to get sales, now they say they don't want sales? This from a company that has vast merchandising and an amusement park? Hell I wear Ferrari Puma's and shirts

There are still waiting lists for their cars, maybe they should sell more special editions so they can increase volume and still have super rare cars?

I think this gives companies like Novitec Rosso a great opportunity to customize cars to make Ferrari's more rare.

Hoovey689

iTrader: (16)

What's wrong with the California? I was invited for a ride event and got to sample a 2010 a few years ago. Just a stellar vehicle inside and out, and I'm not a convertible fan. For near two tons it hustles and with the top down the 4.3L V8 has an unbelievable aural howl. One of the downsides was the super old tech like the navigation, but Ferrari isn't known for infotainment. Also the two rear seats are SC430 bad. Otherwise an awesome ride

LexFather

Nothing is wrong with it. But Ferrari is now complaining they sell too much when they went downmarket to chase sales

huh lol...mind you I am a big fan of their CEO

Hoovey689

iTrader: (16)

I wouldn't call 195K downmarket (only 30K less than a 458) but if they axe the California, that leaves the 458/Spider, FF, and F12 Berlinetta. People would buy more of these and hence make them less special (if everyone has them)

gengar

Nothing's wrong with it. It's not even downmarket, as it slots in at around the inflation-adjusted price that the 360 Modena was introduced at in 1999 - maybe even a little higher.

But the reason people bring it up is that it conflicts with what Ferrari is saying now about desiring more exclusivity. The California was never supposed to be a Ferrari; it was designed as a Maserati. If Ferrari wanted exclusivity, why would they bring in a lower-branded volume model to significantly increase production numbers? It makes no sense - except of course, that Ferrari is lying and they enjoyed the idea of moneygrubbing off the California from all the potential new buyers (especially in emerging markets) who only care about the logo on the car rather than anything inside it.

Or maybe this news is tacit admission that the California was a huge mistake. I posted on here before about how I've kept in touch with various Ferrari salesmen who I knew when I was trying to buy a 360 CS myself, and they bemoaned how the California actually served to cannibalize 458 sales (again, proving that a significant portion of Ferrari buyers only care about the badge). One of them even questioned if the California, despite bringing in new Ferrari buyers, was thus even a net positive. Maybe the profit scheming backfired on Ferrari.

At the same time, I think it reflects terribly on Ferrari to actually admit it. It's one thing for those "in the know" like a salesman or even an executive to understand - internally and quietly - that the Ferrari machine works because people care more about the logo on the car than what the car actually is or does, and that Ferrari needs to pursue marketing over substance to attract those buyers. It's a totally different story for these people to actually declare it loudly to the world.

rominl

iTrader: (4)

as mentioned by mike and gengar, nothing wrong with california, it's a neat car and it bears one hell of a badge.

but looking back at the reason why ferrari introduced the model (lower price range, attract more buyers), it's completely against what ferrari wants to do here. so which direction are they trying to go?

either way, i am definitely not a fan of what they are trying to do here

rominl

iTrader: (4)

the brand was definitely more exclusive without the california and it was just fine. if anything i think the california "cheapens" the brand a little because it's more easily attainable. starting price might be 30k difference, but look at most "normally" equipped california vs italia and i think it's a much wider gap.

friends of mine who are in that league (as in true shoppers of exotics) most of them think the california should have been a maserati

Outrage

It sounds like they projected decreased sales and decided to put a marketing spin on the news.