Ferrari's plan to maintain brand exclusivity
Reduce production and offer more exclusive versions of current cars

On the heals of the 1 million-euro La Ferrari introduction, a recent Bloomberg report says Ferrari is planning to reduce sales for 2013 to less than 7,000 vehicles in order to maintain the brands exclusivity.

"We made this decision because it's important also for the dealer cultures," Ferrari Chairman Luca Cordero di Montezemolo, said at a strategy presentation today at the company's headquarters in Maranello. "Dealers must understand that quality is important, not just quantity."

"Ferrari is like a beautiful woman," Di Montezemolo said. "You must desire her, you must wait for her."

The report goes on to note that Ferrari plans to boost profitability with high-end, customized version of its vehicles while holding back on their availability, and that parent Fiat Group doesn't intend to sell shares in Ferrari.

Source [Automotive News]

For those interested here is the Press release from Ferrari:

Luca di Montezemolo addressed more than 250 members of the media today at the Maranello factory to explain key areas of the business to the media, as well as announcing impressive results for the first quarter of 2013.

“I base my plans for Ferrari on four key areas,” said Montezemolo. “Our team spirit, our passion, our extreme technology and our exclusivity” this is how he summed up his feelings to the assembled journalists from over 30 countries.

Montezemolo announced impressive first quarter results for Ferrari. A total of 1,798 road cars were sold, excluding the pre-sales of La Ferrari, an increase of 4% on the first quarter of 2012. Revenues also increased to €551 million, an increase of 8%. Trading profit was also up 42% standing at €80.5 million with Net profit up 36.5% to €54.7 million.

He also explained his vision not to increase the production numbers of Ferrari road cars in 2013, the production will be less than 7,000 in 2013.

“I want Ferrari to remain exclusive,” he explained. “A Ferrari is like a beautiful woman, she must be worth waiting for and desired. I base my ideas on what I learned from Enzo Ferrari, if we produce less cars, we will not flood the market and it makes our used cars more desirable too.”

The chairman also discussed Ferrari’s investment in the future with an international work force already standing at 2,900 people, he announced that 250 new jobs will be created in Italy this year, with a 20% increase in blue collar workers and opportunities within 3 years for 100 workers to be promoted to professional white collar roles.

“It is my dream that I am replaced by someone who has come from a blue-collar role,” Montezemolo enthused. It was not just the investment in the workforce that he announced, but also a €100million investment from now until 2015 in the environment in which everyone works.

This is on top of the €4 million already invested each year in the workers and their families.
Montezemolo pointed out that innovation is the key to success of Ferrari – none of the models follow the same design - each are individual form the 12 cylinder cars such as the FF to the 8 cylinder California which continues to be the top performing model in the USA. He summed up the range as “Different Ferraris for different Ferraristi.”

He went on to explain that Ferrari is the strongest brand in the world with 95 items displaying the prancing horse sold worldwide every minute. With an international presence in over 61 countries there are currently 54 dealers in the USA, 27 in Great China (a number that is set to increase), 101 in the Europe, Middle East and Asia (EMEA) region and 17 in the Far East (also set to increase).

By far the biggest turnover per market belongs to the EMEA region with the far east and Greater China following second with 28%. Ferrari aims to develop the American market to such a point that it can reach 30% of the turnover by 2017.

 

To me it kinda makes cents...

 

Seems like pretty much everyone wins with this plan. The brand improves its mystique by becoming rarer, no layoffs for the workers (they're actually hiring), and current owners may see a bump in their car's value. People on the waiting list may not feel so good about the decision though

 

Good for them and for the Brand.

 

Food for thoughts: Is brand exclusivity really a function of the # of cars produced?

Lamborghini makes less than 3000 cars a year, are they twice as "exclusive" as Ferraris?

Another way to read the statement is: "we are producing at max capacity and have no intention to invest in new capacity". This makes sense if you think that Ferrari makes almost all its components in house, increasing capacity would require large investments.

As a businessman i see the rationale but as an enthusiast i would prefer to hear more Ferrari engines on the road.

 

More cars on the road equals higher depreciation for current owners. I would rather pay more and lose less down the road

 

I remember Enzo once said that he wanted to keep the number of cars produced below 5000 in order not to dilute the brand

 

From a marketing and branding standpoint, very smart move by Ferrari. Although I do see price increases later down the road which people will gladly pay for.

 

The real reason is sales aren't what they had hoped. Europe demand is weak, Asian demand not doing the numbers they wanted and 458's readily available almost anywhere in North America.

 

Can be, but anyway it's a good news.
you can find a lot of customers complaining the quality of the new ferraris.
But the bad side is wait for the delivery.