When Ferrari took over the Maserati brand in
1997, it's aim was putting more money into their bank account. Something they have had difficulty doing in recent
years. With Ferrari wanting to limit their production numbers to keep their cars exclusive and desirable, there was a
ceiling as to how much money they could bring in. But with their acquision of Maserati, there was suddenly another
source of income for the Maranello based manufacturer. Over several years, new models were introduced which would use
Ferrari technology, and rebuilt the brand's credibility. Of course, reading between the lines, the acquisition of
Maserati was a way for Ferrari to feed their massive, nearly $500 million per year, Formula One budget. With Fiat's
purchase, the money that Maserati generated for Ferrari will no longer exist. So where will that money come from?
Ferrari will surely have a pile of crash from Fiat to spend on F1 and develop new models, but they will be weaker in
the long run as the purpose of Maserati was to help pay for their F1 program.
How will Fiat's purchase affect Ferrari?
Posted Feb 16th 2005 6:05PM
