Ferrari's Annual Output To Increase Under Marchionne
With the departure of Luca Cordero di Montezemolo from Ferrari, Fiat Chrysler Automobiles CEO Sergio Marchionne will become the premium brand’s chair next month, with the first order of business being to increase output to satisfy more demand.
Bloomberg reports Marchionne will gradually increase annual output from 7,000 to a potential 10,000 units, proclaiming that by doing so, they would be able to match pace with the desires of Ferrari’s customer base, lest its waiting list grows too long “and people get tired.” For this year, deliveries are expected to rise 5 percent.
On the same day Marchionne becomes Ferrari’s new chair, FCA will begin trading in New York. While Ferrari is linked to the company — and is considered a defining brand for FCA — he says it won’t be a key brand over the long term.
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They can't let Hyundai have an opportunity to offer a competing supercar at 10% off the standard price... it would have a Ferrari nose, Audi wheels, a Lamborgini rear with Aston Martin taillights, a Roadrunner rear wing, Chrysler 300 windows, Delorean doors, Perodua suspension (since you can't see that part), a Kia engine and the interior from the Santa Fe, with which it would share the assembly line.
This is a relatively small experiment compared with Porsche whose cars are much more affordable on average. When the upper class doesn't know what to do with their money, you can't really dilute your brand by selling more of your $300k sports cars. It's still out of reach for normal people. Porsche is reaching further downward in the market with cheaper CUVs, which is what critics call diluting the brand. Anyone with half a brain can get a looooong term loan or lease deal on a base Cayenne.
If people are waiting over a year for your product then building a few more is the smart move. People with Ferrari kind of money could easily leave the brand if another option is available sooner. These people are used to being spoiled with amazing service, been told to "wait" is not in their vocabulary. This is why the used market for Ferrari's has always been so hot. An used pranching horse is one you can drive home TODAY, if not your have the misfortune of waiting until next year... kind of like their F1 team. Diluting the brand? Please they can always just RAISE the price with a "rush" delivery charge or withhold a special color or model to create a more exclusive experience.
Marchionne is probably considering joining the Mexican assembly fiesta and follow the example Honda, Nissan and Mazda!!!!!