Fiat Chairman Said Ferrari Does Not Have an IPO on Its Agenda image

Today, May 30th, Fiat chairman John Elkann said that Ferrari does not have a possible IPO on its agenda.

This year Ferrari will limit its high-performance street vehicle sales to protect the automaker’s exclusivity fame. As more and more wealthy people buy Ferraris, the company fears that the brand might lose its fame as a symbol of rarefied luxury. Therefore it will reduce production to less than 7,000 units this year, compared with 7,318 units in 2012.

“The exclusivity of Ferrari is fundamental for the value of our products,” Montezemolo told journalists at the company headquarters near Modena, in northern Italy. “We don’t sell a normal product. We sell a dream.”

During the first quarter Ferrari sales increased 4% to 1,800 units, but the estimated drop for this year is somewhere around 2%. Revenues were up 8% to 551 million euro and net profit reached 80.5 million euro, up 42% from last year. The company’s revenues will be kept on track thanks to the automaker’s engine business, which provides motors to Maserati. Currently Ferrari has 3,000 workers to manufacture 5 production models and also limited edition exclusives, such as the La Ferrari hybrid, already sold out to the selected 499 customers.

Source: The Detroit News, Reuters