Despite a ready listing of three years for a few of its vehicles, Ferrari’s CEO mentioned the corporate has no plans to supercharge manufacturing to satisfy demand.
“We are a brand that is not looking for volume,” Ferrari CEO Benedetto Vigna instructed CNBC in an unique interview from Pebble Beach. “We are a brand that is looking for value and respecting the client. For us, the client is very, very important.
“The shopper is giving a worth to our vehicles as a result of they’re distinctive, as a result of they’re restricted, as a result of they’re unique,” he said. “We may make extra, however that does not make sense. We will offend our shoppers.”
The balance between growth and exclusivity has never been more critical to Ferrari. The company’s share price is up 44% over the past year, at a valuation higher than Ford or General Motor, creating pressure from shareholders to continue its strong sales and volume growth.
Benedetto Vigna, chief executive officer of Ferrari NV, in front of a Ferrari Daytona SP3 sports car at the company’s headquarters in Maranello, Italy, on Tuesday, Feb. 7, 2023.
Francesca Volpi | Bloomberg | Getty Images
Yet because the famous prancing-horse brand is built on scarcity — and owners who rely on limited production to maintain their cars’ value — Ferrari is also expected to keep tight reign on production.
Last year, Ferrari produced 13,221 vehicles, up 18.5% over 2021. Demand still far exceeds supply, with dealers saying the wait for a new Purosangue SUV and other models is now at three years or more. Many buyers say they can’t even get on the waiting list for a car, since there is simply not enough production.
Founder Enzo Ferrari famously said Ferrari would produce “one much less automotive than the market demand.” Today’s shortfall is far greater, with some analysts saying the company could easily sell twice as many cars as it produces. Ferrari is building a new factory for its hybrid and electric vehicles, but it’s unclear how much Ferrari will increase production.
Ferrari Purosangue
Source: Ferrari
Vigna said that despite limited supply, the company continues to expand its reach among younger, new clients. Its client base has expanded for 10 quarters in a row, and 30% of its new clients are younger than 40 years old, he said.
“Our new shoppers are 10% youthful than all of the shoppers now we have on this planet,” he said. “So the prancing horse is kicking sturdy.”
Vigna added that buying a Ferrari should never be easy or quick, since it’s the ultimate aspirational car.
“Getting a Ferrari is an expertise that begins from the time you first see a Ferrari,” he said. “It’s not one thing you will get very simply.”
Racing DNA
Winning in Formula 1 auto racing, however, has also not come easily to Ferrari in recent years. Ferrari is currently in fourth place in the F1 team standings, behind Red Bull, Mercedes and Aston Martin. Vigna said the chief focus for the team is on improving the car.
“This is essential to us, as a result of our DNA is racing,” he said. “We have a automotive that’s the quickest for us up to now, however it’s not the quickest on the observe. So now we have to maintain bettering.”
Vigna quoted Enzo Ferrari as saying, “The one who comes after me should tackle a quite simple inheritance — to maintain alive that want for progress which has been pursued prior to now.”
“That’s what now we have to do, in racing and in every thing we do,” Vigna said. “We should hold working.”
When asked if Lewis Hamilton, the famed Mercedes Formula 1 driver, might join Ferrari, Vigna said: “We have Charles (Leclerc) and Carlos (Sainz Jr.), they’re doing a unbelievable job. They are pals, they’re competing. So for us, the principle precedence is for the automotive to be extra aggressive.”
Source: www.cnbc.com”