New Ferraris on Display at the Geneva Auto Show
Ferrari had a large display at the Geneva Auto Show with two just-introduced 812 Superfasts, one in red and one in silver, a 488 GTB in the livery of the 70th Anniversary Tailor Made, in Rosso Corsa with Blu Laguna + Giallo Modena, with nose painted like the 290 MM, s/n 0626, a 488 Spider, a California T, a 488 GTB and finally a GTC4 Lusso. Chassis numbers in the next issue of Cavallino.
Having promised its shareholders a boost in sales and profit following its 2015 initial public offering, Ferrari faces the challenge of selling more cars without diluting its air of exclusivity. Sergio Marchionne, likely to reach his target of selling 9,000 cars annually by 2019, is pushing high-performers like the 812 Superfast to maintain earnings momentum, even as he widens the lineup.
Keeping supply capped by model is the key to protecting Ferrari’s reputation. “We need a much wider range of products than we’ve got today,” in order to increase volumes beyond 9,000 vehicles, the CEO said. There’s still a “phenomenal amount of space” to expand Ferrari’s range without massive investment in new technology and platforms, Marchionne has said in the past. Such low-risk expansion is critical for the boutique manufacturer as it seeks to compete without the backing of a bigger industry player.
In an effort to reach a wider audience, Ferrari unveiled a four-seater GTC4Lusso “family car” in Geneva last year and may consider a five-door version to draw buyers seeking more practicality and comfort, said Ian Fletcher, an analyst at IHS Automotive in London. “There is for sure demand for that kind of hatchback, which could generate high margins using an existing platform,” Fletcher said.
While Ferrari hasn’t yet decided whether to add a five-door model, the company’s expansion strategy is its most critical and Marchionne told reporters in Geneva he wants to reach beyond traditional sports car customers. He reiterated that Ferrari will never make an SUV, despite growing demand for ultra-luxury all-terrain vehicles made by the likes of Bentley and Mercedes-Benz Maybach.
Still, Ferrari’s bread-and-butter models are its high-powered, hand-crafted supercars and special editions -- which these days are appearing with increasing frequency. The manufacturer sold out its $2.1 million special-edition LaFerrari Aperta last year even before its debut, and it’s rolling out 350 limited-run models of its five main lines to celebrate its 70th anniversary this year.
The 812 Superfast, which replaces the F12 Berlinetta, can exceed 340 kilometers per hour. Borrowing from the automaker’s Formula 1 designs, it’s aimed squarely at a core audience of race-car aficionados. The new model has flaps in the underbody that suck in air when the brakes get hot. With a high fastback tail and curving wheel arches, it’s meant to evoke the 1969 Daytona while adding modern aerodynamic lines.
Spun off from Italian-U.S. automaker Fiat Chrysler Automobiles NV in 2015, Ferrari posted record profit last year and plans to increase earnings by at least 8 percent this year. The company previously limited production to 7,000 annually to protect its exotic allure and now expects to sell about 8,400 vehicles this year after 8,014 in 2016. Ferrari is on its way to post over 1 billion euros in earnings before interest, taxes, depreciation and amortization this year, Marchionne said. The company, which has a target to make at least 950 million euros in adjusted Ebitda, plans to reach its financial goals by “selling an adequate number of cars with a sufficiently high margin.”