Ferrari ups profits while cutting production (2013) CAR report

Published: 01 August 2013

Eyebrows were raised in May 2013 when Ferrari chairman Luca di Montezemolo confirmed to a group of journalists, including CAR’s own Ben Barry, that the illustrious supercar maker wanted to slow its production rate and sell fewer cars in 2013.

The strange-sounding order was decreed to help the brand retain its exclusivity, yet despite the gastric band on output, the Ferrari boss insisted profits could be upped. Impossible? No – Ferrari is on course to do just that, according to figures released today (1 August 2013).

How’s Ferrari doing so far in 2013?

During the period April-June 2013, Ferrari production increased by only 2.8% versus the previous year, while car output actually fell against output in the first three months of 2013. Despite this, trading profits are up by €176m (£116m) marking an increase of 22%.

Ferrari says demand for the 458 Italia, the 458 Spider, and the all-wheel drive FF is consistently strong, while the new 730bhp F12 is proving popular and drop-top Californias are still being shifted, despite the latter model’s age.

Who buys the most Ferraris?

In Europe, it’s we Brits. During the first six months of 2013, 415 UK-based owners took delivery of new Ferrari models – ahead of Germany, which snapped up 388. Waiting lists range from 12-18 months, but Ferrari swaps build slots between markets depending on demand, in an effort to keep delays at less than two years.

Countries with resurgent economies like the USA, Japan and the Middle East are all posting strong Ferrari demand, while struggling European nations continue to see Ferrari purchasing freefall. The home Italian market has slumped to just 3% of total Ferrari sales.

>> Click here to read Ben Barry’s behind-the-scenes tour of Ferrari HQ

How else is Ferrari raking in the profit?

By completely restructuring its mammoth merchandise operation. The company has slashed the number of official worldwide Ferrari product licencees by 60, and invested heavily in the remaining sites.

Although it might make enthusiasts wretch, ideas like Ferrari’s new range of tailored clothing, christened ‘PR1MA’, has helped the Maranello-based store score a 50% upsurge in revenue so far in 2013. Results for the global operation are up by around 9% for the year-to-date.

>> Is Ferrari’s ‘sell fewer, profit more’ a strategy you’d like other manufacturers to copy? And which brands would you nominate? Click ‘Add your comment’ below

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