Ferrari to reduce sales to protect brand

Concerns that rising sales in China damaging brand exclusivity

The new Ferrari La Ferrari (F150) debuted at the Geneva motor show in March. Photographer: Chris Ratcliffe/Bloomberg

The new Ferrari La Ferrari (F150) debuted at the Geneva motor show in March. Photographer: Chris Ratcliffe/Bloomberg

Thu, May 9, 2013, 13:14

Ferrari plans to reduce sales to fewer than 7,000 vehicles this year to “maintain the exclusivity” of the brand.

“We made this decision because it’s important also for the dealer cultures,” Ferrari Chairman Luca Cordero di Montezemolo, told reporters at a strategy presentation at the company’s headquarters in Maranello. “Dealers must understand that quality is important, not just quantity.”

Ferrari, which unveiled the €1 million LaFerrari hybrid model at the Geneva car show in March, plans to boost profitability with high-end, customised version of its vehicles while holding back on their availability.

Ferrari sold 7,318 cars in 2012. The brand’s first-quarter trading profit, or earnings before interest, taxes and one-time items, surged 43 per cent to €80 million euros, helped by higher sales and contributions from product licensing and car customization. Revenue increased 8 per cent to€551 million. The famous sports car maker is owned by Fiat.

Ferrari plans to hire 250 workers this year, Montezemolo said. Of the new employees, 200 will build engines for Maserati as part of Fiat’s plan to boost sales of upscale models to counter losses in the volume car business in Europe.

The super-sports-car segment is expected to slow globally this year, Lamborghini Chief Executive Officer Stephan Winkelmann said.