Ferrari production to increase under Marchionne Are you an aspiring New or Used Car Buyer looking for your dream car? Visit Cars4sa.co.za Filed under: Plants/Manufacturing, Ferrari The head of any company has to juggle the relationship between supply and demand. Of course, that applies to automakers too, even ones as high-end as Ferrari. And as with many other decisions, the way Ferrari has addressed supply and demand has come down principally to the principal.Enzo Ferrari may have only wanted to sell as many vehicles as he needed in order to fund his companys racing department, but with the F40 - the last model made under his watch - Ferrari ended up increasing supply to meet growing demand. However, after Luca di Montezemolo took over in the wake of Enzos passing, he started constricting supply. He figured Ferrari could sell 400 units of the F50, for example, so he built 399. More recently, Montezemolo undertook a course of action that spread Ferrari into more markets, while simultaneously constricting supply to increase demand and thereby profitability. Its been a winning formula for Ferrari. Just days ago, the company announced record earnings up by 14.5 percent in the first half of 2014 over the same period last year, which itself had seen a 7.1-percent increase over the year before. Clearly the strategy has worked, but Montezemolos successor is already eying a different approach.According to Bloomberg and others, Fiat-Chrysler chief and incoming Ferrari chairman Sergio Marchionne intends to increase supply to meet growing demand. Where Montezemolo restricted production to 7,000 units per year, Marchionne is eying 10,000. Thats in part because the Italian-Canadian auto magnate believes that Ferraris expansion into new markets means that theres little risk of oversaturation. In particular, Marchionne sees the F12 Berlinetta (inset photo) as a growth model, and intends to ramp up production to shorten the waiting list and keep supply moving apace. Its the first big change were seeing Marchionne enacting as he takes over and ushers in a new era at Maranello. Well be watching to see what other changes he has in store for the Prancing Horse marque. In the meantime, you can read the full details of Ferraris financial performance in the press release below. Continue reading Ferrari production to increase under Marchionne Ferrari production to increase under Marchionne originally appeared on Autoblog on Sun, 14 Sep 2014 14:01:00 EST. Please see our terms for use of feeds. Permalink | Email this | Comments
Posted on: Sun, 14 Sep 2014 18:29:53 +0000
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