In a stark contrast to the general automakers rush to become the No.1 in worldwide sales, high-end luxury companies like Ferrari, Bentley or Rolls-Royce fight to balance sales with earnings margins.
And when such companies boast that reaching record sales is not their highest priority, we can only imagine the other one is – as in the high stratosphere of the segment earnings come with many zeros.
Taking Ferrari, we can see the Italians are now the exact embodiment of the philosophy, they have a production cap for the year, they have reported sales slid 6% for the first three months of the year, but in the same time revenue grew north of 12% over the same period in 2013.
“We want to keep total production of the cars in our range under the 7,000 mark once again this year,” said Ferrari chairman Luca di Montezemolo.
The 85-year-old brand had revenue of 620 million euros (roughly $850 million) from sales of just 1,699 models globally, which is 100 less than a year ago. Also, net profit was up 5% to 57 million euros ($78 million). The company continues to invest much of the profit in the line-up, with the idea that limiting sales also bolsters modern and vintage Ferrari’s residual value and is keeping up the successful Formula One team, while also being implicated in many lucrative non-automotive projects.
by Aurel Niculescu
) - Tuesday, May 20th, 2014 - filed under Ferrari
, Sales Reports
. Image credit: .
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