U.S. customers must now wait 24 months to own a Ferrari
There is a basic principal of economics that we all know about called supply and demand. As long as the demand for a product exceeds the supply, the price can stay relatively high. If the supply grows beyond the demand, the price drops. US automakers have proved this principle in no uncertain terms as demonstrated by the level of incentives they have to provide to move their vehicles.Ferrari, on the other hand, has always tried to make sure that the supply of its sports cars fell a little bit short of demand. That has allowed it to keep its prices high and maintain an exclusive image. Unfortunately, it has faced an enviable problem in the last few years as new markets have exploded in places like China and newly wealthy individuals decide they need an insanely fast car to demonstrate those financial resources to the local populace.
Ferrari doesn't want to find itself in the situation that Porsche faced in the late '80s when that automaker greatly expanded production to try and meet demand, then suddenly found itself stuck as a recession hit and it had a lot of unsold cars. Over the past seven years, Ferrari production has swelled from 4,000 to over 6,000 this year, and at the same time waiting lists have also doubled from twelve to twenty four months. A tough problem to deal with, but at least a Ferrari is a little harder to knock off than a Hermes bag or a Rolex watch. In the meantime, dealers are trying to steer new buyers toward used models to get them into the family while they wait for a new example, and the company is keeping tabs on dealers to quash abusive waiting list practices.
[Source: Wall Street Journal]
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Reader Comments (Page 1 of 1)
Nick 5:07PM (5/08/2007)
More customers for Lamborgaseti!
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Jayson 6:00PM (5/08/2007)
Thank God Ford doesn't own Ferrari. Here is what would happen if Ford owned Ferrari like what it did to Aston Martin:
1- Ramp up production quickly without Addressing issues. Example DB7
2- Want a new engine, bring it over from the Ford Taurus. Weld two 3.0 Duratecs together to make a V12. Thats exactly how the 5.9 V12 from Aston is.
3- See if you can get parts from the ford empire and shove it into Ferrari to cut costs again. Ford put Miata door handles on the DB9.
4- Take Platform sharing to new heights. Make a Jag out of the F430 platform and make other Ford vehicles out of Ferrari platforms. XK8 and Vantage are the same.
5- Need a V8 engine for Ferrari? Oh no, dont develope one, bring one over from Ford again. Such as V8 from Ford going into Vantage.
I can go on and on. I am so happy Ferrari stays true to its heritage and doesn't let waiting lists cloud its judgment.
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fizzandpop 6:06PM (5/08/2007)
It doesn't help that the factory has also gone on strike.
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keebie 6:50PM (5/08/2007)
Aww rich people have to wait to get a fancy expensive car to one up their neighbors, *plays a tiny violin*
Roger the Car Salesman: My name's Roger, Sir. May I be of some help?
Memphis: That's funny, my name's Roger... Two Rogers don't make a right.
[laughs]
Memphis: Roger, I have a problem...
Roger the Car Salesman: Yes?
Memphis: I've been in L.A. for three months now. I have money, I have taste. But I'm not on anybody's "A" list, and Saturday night is the loneliest night for the week for me.
Roger the Car Salesman: Well, a Ferrari would certainly change that.
Memphis: Perhaps, Mmmm. But, you know, this is the one. Yes, yes yes... I saw three of these parked outside the local Starbucks this morning, which tells me only one thing. There's too many self-Indulgent wieners in this city with too much bloody money! Now, if I was driving a 1967 275 GTB four-cam...
Roger the Car Salesman: You would not be a self-indulgent wiener, sir... You'd be a connoisseur.
Memphis: Precisely. Champagne would fall from the heavens. Doors would open. Velvet ropes would part.
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MikeW 11:09PM (5/08/2007)
How much of a wait for Morgans?
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zach 3:38AM (5/09/2007)
Ferrari knows what it's doing... no big deal.
and yes, i will own one someday - no matter who i have to rob!
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