Ferrari Looks to Bespoke Demand for Increased Profit
Ferrari Chairman Luca di Montezemolo is looking to increase the exclusivity of the Italian automaker’s offerings rather than growing volume to protect its margins and residual values for its customers.
The new LaFerrari was sold out before it was even unveiled at the 2013 Geneva Motor Show, so demand for exotic Ferraris isn’t exactly waning. And with record sales last year of 7,318 units, Ferrari is in a good position for future growth.
But Montezemolo wants more exclusive models for Ferrari, perhaps taking a page out of Lamborghini’s book. The automaker’s revenue per unit is growing thanks to a long list of options buyers can now add to their exotics – on average, a customer is adding over $32,000 in options (25,000 euros). Then there’s the Tailor-Made program that Ferrari offers, where the average customer is spending an additional $64,000 (50,000 euros).
SEE ALSO: More Extreme LaFerrari on the Way
The more personalized and unique the Ferrari is, the higher its residual value is over time. So rather than boosting production and sales, Ferrari is looking to boost profit margins by offering more exclusive vehicles to their customers. As for one-offs and special projects, the Italian automaker has only built about 10 of these over the years, many of which collectors don’t want to make public.
Montezemolo wants to keep Ferrari’s operating margin at around 15 percent. Last year, it operated at a 14.4-percent margin.
[Source: Automotive News Europe]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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