Financial crisis hits Ferrari! Montezemolo denies it!

Article by Christian Andrei, on August 29, 2010

It is denied by Ferrari that it has been affected by the current global financial downturn, although it is in the process of laying off this week alone about 10 percent of its workers. The international sales of the Italian supercar manufacturer have plummeted from an estimated 600 a month to just 92 vehicles by the end of November and currently Ferrari is bargaining with Italy's trade unions to reduce surplus road-car production employees.

Ferrari has acknowledged that it could lay off as many as 300 people this Friday at the earliest. It will also close down its Maranello manufacturing plant for a record 20 days over Christmas, which sources claim is for the purpose of avoiding the stockpiling vehicles which may reach uncontrollable proportions. Ferrari won its 16th F1 World Constructor's Championship the previous month and still brags of a two-year waiting list on its pricey, limited road cars, however sources have pointed out that there are stockpiling happening in some of its distributors around the world, most especially in the United Kingdom.

As lately as last October's Paris Motor Show, the chair of Ferrari Luca di Montezemolo had been talking about a sales goal of 10,000 cars for 2010 which, even with the new Ferrari California on stream early in 2009, now appears to be too hopeful. At that time di Montezemolo held strongly that the economic catastrophe will not affect Ferrari because a decrease in sales would allow it to swiftly respond to markets that might have been waiting for stocks. "Of course the economic problems are being considered," di Montezemolo said. "It depends how long this crisis goes on, if this is close to the end or not.

Because we will see a different world out the other side." He further went on criticize the investors whom he regards as to blame for the economic downturn. "It will be a world more close to industry and real numbers and products and not close to speculation," he said. Di Montezemolo said, "I hope that when it finishes there will be more feet on the ground in the financial world,". 

Inside sources have established that sales of the V12-propelled Ferrari 612 Scaglietti and Ferrari 599 Fiorano have in actual fact slowed down and Ferrari has moved both versions into a unique customization line up to disguise the gravity of the predicament. And what is worse, is that sales of its smaller, V8-propelled Ferrari F430, the heart of the firm's volume and profit, and scheduled to be replaced late next year, went down after the official revealing in October of Ferrari's latest California.

It is being denied by Ferrari that the firm has been unfavorably impacted by the credit crisis. Ferrari said that the longer break was simply Ferrari being generous to its workforce, even if all contracts were under evaluation. "We are going to have a meeting with the trade unions this week and we had a meeting with the union last week," a spokesman for Ferrari said. "We don't know if there is a figure decided, but we are certainly not taking people on board unless they are crucial. What's being talked about [with the unions] is not renewing the people on one-year contracts, which would be about 300 people, and closely examining the consultancies and advisors and that kind of spending."

"We are just being careful. Nobody knows the future anymore and even having a waiting list like ours doesn't guarantee anything for your future." It is asserted by Ferrari that the Christmas break, which begins on the 19th of December to 7th of January, is a merely a coincidence of dates. "The two weekends have come at the right moment. If we needed to stop production we could have taken the entire week off instead of coming back on the Thursday."

Although sources claimed strongly that F430 stockpiles were increasing and V12 manufacture was practically at a standstill, spokesman for Ferrari strong pointed out that sales of luxury cars generally slowed in the end months of each year. "The only region where there are stocks is the UK," the spokesperson said. "It's the market where we have some problems. In the US, nothing much has changed for us apart from a slight braking of sales. For sure, the F430 Spider is not doing very well, because of winter and the California, so there are stocks in some places."

Topics: ferrari, sales

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