Fiat Five Year Plan: More Profit From Ferrari, Cheaper Maseratis

Edward Niedermeyer
by Edward Niedermeyer
fiat five year plan more profit from ferrari cheaper maseratis

Given Ferrari’s pricing politics, it seems safe to assume that Ferrari/Maserati is a fairly profitable enterprise for its 85 percent owner, Fiat. Indeed, with over $2.5b in combined revenues last year and an 11.5 percent operating margin, the Italian sportscar brands aren’t exactly dying of economic downturn-related causes. But at today’s presentation of Fiat’s five year plan, CEO Sergio Marchionne revealed that his firm has big plans for Ferrari/Maserati, and gave unprecedented planning details as proof of the brands’ path towards even greater profitability.

Though Ferrari and Maserati have been able to share components without succumbing to significant brand overlap, Fiat is set on driving the sister firms further apart in terms of strategy. Maserati will move downmarket, according to reporting of Fiat’s presentation by Automotive News [sub], adding two new models priced between $73,600 and $93,700 over the next five years. One of these models is an E-segment sedan, aimed at BMW’s 5 Series GT. Is this the LX-platformed Maser we’ve been hearing rumors about? Meanwhile, Maserati will also replace its Quattroporte flagship sedan by 2014, with a pricing target reportedly aimed lower than the current model’s $120k sticker.

And while Maserati moves towards making premium Italian motoring more accessible, Ferrari will be putting the screws on prestige addicts in order to boost group profits. In hopes of “stable volumes,” Marchionne even gave details of Ferrari’s future product plan, a new move in the normally-secretive Fezza playbook. Automotive News [sub] breaks down the plans:

  • A replacement for the 612 Scaglietti coupe and a spider variant of the 458 two-seat coupe, both coming in 2011.
  • A successor to the 599 GTB and a limited edition supercar to replace the Enzo, both coming in 2012.
  • A face-lifted California spider in 2013.
With Ferrari and Maserati parting ways in order to cover more of the market, Fiat expects the two to bring in even more revenue and improve margins. By 2014 the two brands are expected to bring in $4.7b in revenue, and up their collective operating margin to a staggering 15 percent. If those numbers pan out, the two are looking at an operating profit approaching three quarters of a billion dollars per year. Forza!
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  • Ronnie Schreiber Ronnie Schreiber on Apr 21, 2010

    I don't get it. Marchionne also announced that they're not going to kill Alfa Romeo but rather pitch it as a premium brand. Assuming that Alfa would slot in under Maserati, that doesn't give Alfa much room if Masers will be targeted at BMW 5 series customers. It also leaves a big hole between Maserati and Ferrari. If the Quattroporte is replaces with something less than $120K, that leaves a big hole unless Ferrari also goes downmarket below the California, which has a MSRP of $192K.

    • See 3 previous
    • Th009 Th009 on Apr 21, 2010

      Aston Martin sales numbers make Bentley look like a volume brand. (Yes, the Continental GT does fit into that bracket, too.)

  • Twotone Twotone on Apr 21, 2010

    Maseratis are already cheap -- low-mileage 02/03 Coupe GTs for $25k. Twotone

  • Alan I think this vehicle is aimed more at the dedicated offroad traveller. It costs around the same a 300 Series, so its quite an investment. It would be a waste to own as a daily driver, unless you want to be seen in a 'wank' vehicle like many Wrangler and Can Hardly Davidson types.The diesel would be the choice for off roading as its quite torquey down low and would return far superior mileage than a petrol vehicle.I would think this is more reliable than the Land Rovers, BMW make good engines.
  • Lorenzo I'll go with Stellantis. Last into the folly, first to bail out. Their European business won't fly with the German market being squeezed on electricity. Anybody can see the loss of Russian natural gas and closing their nuclear plants means high cost electricity. They're now buying electrons from French nuclear plants, as are the British after shutting down their coal industry. As for the American market, the American grid isn't in great shape either, but the US has shale oil and natural gas. Stellantis has profits from ICE Ram trucks and Jeeps, and they won't give that up.
  • Inside Looking Out Chinese will take over EV market and Tesla will become the richest and largest car company in the world. Forget about Japanese.
  • Joe These guys are asking way to much.. 40% raise, Medical for retired workers, 4 day work week. - Go work a regular job like as an accountant, or Insurance agent and see what you get when you retire! Why do I have to put money in a 401K and these guys get a pension and medical for life. Cars are already to expensive! However at the same time GM is bragging that they are going to be making billions on subscription services in the coming years. If we could all stop being so greedy the world would be a better place
  • Tele Vision Let's not forget the massive used ICE car market that will exist - even after mandated EVs for all.