Text: Marcus De Guzman / Photos: Ferrari | posted October 16, 2015 12:29
Ferrari to pursue profit over exclusivity?
Ferrari exclusivity appears to be heading out the door after CNBC reported that the brand will boost production by 30% by 2019.
The reason for Ferrari’s planned increase in car production is due to the fact that the automotive market is growing. The demographic is also changing as the size and the purchasing power of their clients is on the rise.
Another reason may be the company’s recent release of their IPO which may average from $48 - $52 (about PhP2.2k – PhP2.4k). Ferrari may have to strike the right balance between their public shareholders and the owners after the IPO.
Theoretically this will bring will more profit and revenue, but this might also affect Ferrari owners and collectors who rely on the brand’s high resale value and collectability.
But Ferrari also did say that they will still maintain a sense of exclusivity for their purchasers by “deliberately monitoring and maintaining our production volumes and delivery wait times to promote this reputation.”
In addition, the brand will still continue the tradition of coming up with special edition cars and limited-run models that will feature the latest automotive tech like the Ferrari LaFerrari.
Currently, the ‘prancing horse’ produces 7,000 cars per year. If they indeed step up production, Ferrari will soon be shelling out nearly 9,000 cars every year starting in 2019.
Besides filing the Ferrari brand on the New York Stock Exchange, they will also expand the brand through theme parks, retail stores and licensing rights for sportswear, watches, electronics and other accessories.