Posted on October 29, 2015.
This article was posted on the New York Times website:
Ferrari Chairman Sergio Marchionne is edging Ferrari production higher as the luxury sports car brand prepares for a future as a stand-alone company.
Marchionne told analysts on Wednesday that he expects Ferrari production to reach 9,000 units by 2019 and that it will take a few years “to determine the natural limits of the brand.”
Ferrari has limited production to 7,000 units to maintain exclusivity, although it edged up to 7,255 last year and is expected to reach some 7,700 units this year.
Marchionne also said he plans to introduce new Ferrari brand extensions beyond cars by 2017 as part of his plan to transform Ferrari into a luxury goods brand. He didn’t specify what that could entail, but Ferrari already has extensive merchandising, retail stores and a theme park in Abu Dhabi.
Marchionne said if done properly, profits form the so-called “adjacent businesses” could produce as much profit as the car business. “It would be a crying shame if we don’t find a way to extract value without detracting from the uniqueness of the car brand,” he said.
Marchionne plans to spin Ferrari off from the mass-market parent Fiat Chrysler Automobiles in January, on the heels of the successful public listing this month of 10-percent of Ferrari on Wall Street. Along with the spinoff, Fiat Chrysler will distribute its 80-percent remaining stake to FCA shareholders.
Ferrari reported a 62 percent increase in net profit to 94 million euros in the third quarter, with deliveries up 20 percent.
