How Montezemolo kept Ferrari away from the financial crisis

Article by Christian A., on September 3, 2010

While most supercar makers felt the impact of the global economic crisis with sales falling by up to 50%, Ferrari was left relatively unscathed.

This achievement is being credited to 63-year-old Ferrari Chairman Luca Cordero di Montezemolo who played a big role in keeping the company on course. Unit sales at the Fiat S.p.A. subsidiary fell by only 4.5% to 6,235 units.

Admittedly, Ferrari's operating profit dropped to nearly 30% to 245 million euros, but the company still had a significant operating margin of 13.8% of revenues. This is still by far, the best result in a year when the industrywide global margin for automakers was in the low single digits.

Montezemolo has been with Ferrari for almost 20 years and during all those years, he has gone through many crises.

And in each of those challenges, Montezemolo had pulled Ferrari through. Many believe that Montezemolo's secret to success is his belief that: “To maintain Ferrari's exclusivity, you must always build one car less than the market demands."

He has also pushed the company to come up with “Ferrari diverse per Ferraristi diversi” (different Ferraris for different Ferrari owners). He encouraged Ferrari owners to have the company produce front-engine models such as 456 GT, 612 Scaglietti, California to complement its core lineup of rear engine supercars.

To keep Ferrari exclusive, it will have to continue to restrict annual production to about 6,000 units annually. Nonetheless, Montezemolo continues to find new ways to turn cash in on the Ferrari brand. Montezemolo also managed a wide expansion in Ferrari’s merchandising and licensing. [via autonews - sub. required]

Topics: ferrari, sales

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries