Italian carmaker Ferrari will reduce production by at least 4 percent to less than 7,000 vehicles in 2013 despite growing sales to preserve the brand’s exclusivity, chairman Luca Cordero di Montezemolo disclosed. Ferrari’s chairman said that the move would still allow the carmaker to continue to flourish amid an uncertain global economic outlook.
He remarked during a press conference that "the strength not to listen to people who say 'your competitors will benefit from this'” is a choice he learned from founder Enzo Ferrari. He said that the founder used foresight in enhancing the value of the brand. Ferrari’s latest move is also meant to protect the resale value of its vehicles.
Ferrari's entry-level California model has a starting price of EUR185,000 in Italy while the range-topping 12-cylinder F12 carries a tag of EUR272,000. Ferrari sold 7,318 cars in 2012. Montezemolo remarked that Ferrari's decision to cut production was "shared" with its main shareholders, and comes despite a growth in revenue of 4 percent to EUR551 million in the first quarter.
The Italian carmaker posted EUR80 million in earnings before interest and text in the first quarter of 2013, after selling around 1,798 cars in the period. N
et profit for the period was EUR54.7 million. Montezemolo noted that the company reduced output of high performance sports cars in 2003 for similar reasons. Ferrari’s chairman said that the brand's value allowed it to earn EUR52 million in revenues from 60 merchandising licenses of Ferrari-branded clothes, toys, watches and other items in 2012. He noted that “95 Ferrari-branded items are sold every minute around the world."