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

by Edward Niedermeyer

April 21st, 2010 4:50 PM

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!

#Ferrari #Fiat #FutureProducts #HighFinance #Luxury #Maserati

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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.

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- Brian E on Apr 21, 2010
  
  5 Series GT is priced a bit more than a base 5er. I would expect Alfa to focus on smaller cars and SUVs (huh? really?) at first. The plan (see the next post) doesn't incorporate a 5-series killer. Is there really any niche worth filling between $100k and $200k? So far that space seems to belong to the 911 Turbo and not much else. I get the impression that the GranTurismo hasn't been extraordinarily successful there. Maybe anyone who is willing to drop six figures on a coupe is willing to to save up for the full-on Ferrari experience.
  
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- Ronnie Schreiber on Apr 21, 2010
  
  It looks like Aston Martin also plays in the 100K-200K segment, with the V8 Vantage starting at $120K, and the DB9 starting at $183K.
  
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- Brian E on Apr 21, 2010
  
  That doesn't exactly paint a rosy picture of the $100-200k segment. Aston is the very definition of niche player.
  
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- 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.)
  
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Twotone on Apr 21, 2010

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

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