Ferrari Aims for Higher Margins Not Higher Sales image

Ferrari Chairman Luca Cordero di Montezemolo plans to reach higher margins without increasing Ferrari’s sales.

In 2012 Ferrari sold a record 7,318 supercars, which represents 50% more than in 1991 when Montezemolo became Ferrari CEO. But in 1993 the economic crisis made sales drop to 2,325 units. Ferrari is certainly not the automaker it was 20 years ago and since it is a diversified company Montezemolo wants finances to keep improving even if sales are static.

Montezemolo said that so far this year sales are doing good and that the LaFerrari has been sold out before it was unveiled at the Geneva auto show. But the CEO’s focus is not to increase sales but to increase the company’s exclusivity in order to protect margins and residual values.

“I want Ferrari to remain at around 15 percent as we had a 14.4 percent margin last year and it was 14.1 percent in 2011. This will be challenging because we are facing an intensive investment program,” said Montezemolo.

The company has expanded the Ferrari Classiche workshop in Maranello and it also plans to open a subsidiary in the US, possibly in California, as this would save the high cost of shipping cars back and forth to Maranello for restorations.

Source: Autonews