Can Maserati Replace Ferrari? (Or at Least Ferrari's Profits)

Aaron Cole
by Aaron Cole

With the imminent spin-off of Ferrari, Fiat Chrysler Automobiles boss Sergio Marchionne may be looking for a cash cow to help keep lagging brands at FCA afloat.

A story by Automotive News on Wednesday wonders aloud if Maserati will replace Ferrari as FCA’s marquee brand with double-digit profit margins. Behind Marchionne’s plan to sell the world on Jeep and Alfa Romeo, he would need to sell the world on the idea that Maserati is an exclusive, luxury brand, the article says.

Of course, that may be tough to do considering Maserati has always had a reputation for being Ferrari’s nerdy suburban cousin.

At issue isn’t the Trident brand’s identity, but rather its bottom line. When Ferrari leaves the FCA family later this year, it’ll likely be taking some debt but also a lot of cash. Ferrari turns a profit each year, upwards of $500 million, for parent-company FCA. Money like that is hard to replace.

Maserati comes close, according to the story. Despite starting at $69,800 for an entry Ghibli, Maserati manages 10 percent margin on its cars compared to Ferrari’s 13 percent. Maserati’s volume production is also roughly 6 times that of Ferrari’s, but refining Maserati’s image from famously fussy to drop-dead desirable could be a tall task.

According to Autodata Corp., sales of the Ghibli have slid considerably since its introduction in 2013 and dealers have offered more than $9,500 in incentives for the mid-sized luxury car.

Still, Maserati is boosting its dealership presence in the U.S. by around 20 percent this year to 125 dealers and their luxury Levante SUV should be unveiled at Detroit’s North American International Auto Show.

“They’ve got a hell of a lot to build on,” Joe Phillippi, president of AutoTrends Inc., a consulting firm in Andover, N.J., told Automotive News. “But it’s incredibly expensive to play the game. Marchionne can’t afford to stumble. With the volume numbers he’s trying to generate, he’d better not miss.”

Maserati has grown considerably in the U.S. thanks to a larger portfolio and growing dealership network.

Aaron Cole
Aaron Cole

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  • CincyDavid CincyDavid on Jul 09, 2015

    I don't "bleed purple" like all of the Elder HS guys, we are a St Xavier Bomber household. My dad bitched a blue streak when tuition was $1500 my senior year, in the 80s. Our senior will be costing us nearly $15K next year...it'll be cheaper when he goes to college.

    • Corey Lewis Corey Lewis on Jul 09, 2015

      Good grief, I had no idea they were that expensive! I'm from the Indiana side originally, so when people ask me where I went to school, I say Hanover. Then they say "Oh, is that off of Harrison?" I'm like NOOOOO.

  • CincyDavid CincyDavid on Jul 09, 2015

    Hahaha, Cincinnati can be a smidge provincial. Shoot, I could pay cash for a Maserati with the money I've spent on Catholic education. And a Porsche too...

  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉
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