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All is not well in Maranello. It would appear that the ripples of the global recession have finally reached mighty Ferrari. According to Bloomberg, the Italian supercar manufacturer has decided to cool production and send a healthy handful of workers packing amidst the announcement that production targets have been nearly halved for 2011. The report points the blame directly at Maserati. Ferrari's sister company has scaled back its orders for Ferrari-built engines, leaving both companies' coffers light.

Ferrari is contemplating drastic moves in order to maintain its profitability, including nixing 120 office positions and 150 factory jobs. The company also wants to idle its production facility for a full week – effectively laying off nearly 600 workers in the process.

Needless to say, the announcement has led to unrest, and workers walked out in protest for four hours yesterday. But numbers are numbers, and Ferrari has said that it will cut production from 20,000 units this year to 11,100. For what it's worth, last year, the company built 4,500 engines for Maserati – exactly half of what it built for 2008.

[Source: Bloomberg]

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    • 1 Second Ago
      • 5 Years Ago
      Ferrari have no trouble selling every car they wish to make. they setup an engine plant for Maserati and now Maserati are slowing sales. that is the area that is being idled.

      the workers are pissed because they are the first to get laid off... they are all ready getting sacked, why not go for a long lunch and a drink?

      Ferrari have no desire to make an everyday, cheaper model. They want to be exclusive, exotic and for that performance, you have to expect it to be more work to maintain.
      • 5 Years Ago
      Maybe its high time Ferrari offer a twin-turbo V6 car thats a touch less exclusive but would compete handily price-wise with a GT3 RS (around $150,000).

      All the other top marques have made overtures to down market shifts, why must Ferrari be so arrogant as to ignore a golden opportunity? To those who suggest that even vaulted Rolls Royce wouldn't stretch down so far (stopping at their Ghost product for the time being) I counter that is because a Rolls Royce can fulfill mundane driving duties. As a toy, $200k for a car that will depreciate is rather stiff these days.

      For collectors, $200,000 will buy a wide array of truly wonderful cars that will hold their value far better than a new California or 458 for the short term future. I wouldn't be surprised if the wealthy are choosing other investments either. A depressed value vacation home is looking a lot smarter than an Italia at MSRP in this economy.
        • 5 Years Ago
        Ding! Winner.

        Development gestation times are long at Ferrari and the California comes closest to the strategy you laid out. Their thinking was that a car that was more usable for daily driving (which it is) would appeal to a broader audience and incur more repeat purchases. Very sound thinking in 2006 but they elected to maintain fat (though slightly thinner) margins.

        Today, the price-point they chose appears a bit dear for the emerging markets they were targeting. I agree that a $150k car would have been far, far more appropriate (and they're very likely planning one now). The challenge is in maintaining their exclusivity -- Their brand is literally *everything* and to dilute it is risking heresy in Italy.
      • 5 Years Ago
      Just sell the 458 as the 229, the 599 as the 299.5, and bring the F40 back as the the F20 for 50% savings... duh.
      • 5 Years Ago
      Only so many rich people in the world and or perhaps they realize it’s not nice to flaunt it when millions are losing their homes.
      • 5 Years Ago
      Certainly flies in the face of all that chatter about 1-3 year wait times for the latest Ferrari model... Gee could Ferrari have been lying to market its so-called exclusivity? Say it ain't so, Joe!
        • 5 Years Ago
        Did you read the text above?
      • 5 Years Ago
      Hmm...according to some people on the site, idling a plant is devastating to company. Apparently it can help save money too, i see. So its not all that bad.
        • 5 Years Ago
        They are idling a plant for one week. You are talking about doing it for a year- ALL of them.

        1. Do you pay the workers or not during this year?
        - If you don't pay them, are you assuming they will all wait around loyally and show back up one year later?

        2. Do you tell all the suppliers to shove it when you tell them you won't be needing the parts you agreed to buy?
        - If you do, do you expect them to want to do business with you ever again? And how do you deal with all the lawsuits of the contracts you break?

        3. If you said no to the above then how do you expect to save money if you still pay all your workers and buy all your parts but don't build anything? Just by turning the lights out at the factory? That's it? That's your big plan to save money?
      • 5 Years Ago
      Ferrari is doing fine...................it is the Maserati part of the business which is disappointing.
      Maybe they should sell the engines to Alfa Romeos..............that will solve Alfas stagnant sales.

      But just to explain to Americans why Ferrari workers are striking.
      The first emendament of the Italian constitution says "Everyone is entitled to a job"
      Yes it is the most important part of the constitution believe it or not.
      It sounds actually kinda stupid but then again, Italy almost fell under the USSR umbrella after the end of the WW2, luckily we've been saved by the American secret services thank God.
      Still Italy had the biggest Communist party of western Europe up until 10 years ago.
      • 5 Years Ago
      that car... sounds soooo good.
        • 5 Years Ago
        Here is the lesson for Ferrari: dump the holy cow atitude and make an SUV. That is what saved Porsche and there is no reason why it can't do the same for Ferrari. and another thing, since the Panamera is such a huge success, why not make a proper sedan too..no I'm not talking Quatroporte but a proper stunner like the Lambo Estoque would have been.

        In the years to come more people will begin to realize that sharing the excitement with passengers is what people want more and more.
      • 5 Years Ago
      "Needless to say, the announcement has led to unrest, and workers walked out in protest for four hours yesterday. "

      I just don't get the logic of these people. If there's no work, there is no work. If there's no sale, there is no need for building the products. What is there to protest?
        • 5 Years Ago
        Some people believe they are entitled to a job no matter what shape the company is in. No sales, so? We'll just keep building em!
        • 5 Years Ago
        I was thinking the same thing. I think it's a union mindset... somebody with more knowledge of labor politics enlighten us please.
        • 5 Years Ago
        The layoffs are coming preemptively. There is still plenty of work and fat margins. They've got reason to be upset about that. The California and Granturismo have made up for the downturn in Maserati QP engines. Don't believe the PR spin.
        • 5 Years Ago
        @ Paul
        Please cite your source.

      • 5 Years Ago
      if they drop the price down on service costs more people would own one. I don't want a F355 for 60K to pay 10K engine in out maintence every 15K miles. As well i don't want to pay 1400 for wheel balancing, tire roation, wheel alignment and and oil change on an F430. Charge as much as porsche does and yes i will pay you $180K+ for your cars
        • 5 Years Ago
        They can't charge like Porsche does because their cars aren't really as reliable and really do require a lot more service. Yes there's a humongous markup as well, but there's a reason why Italian supercars depreciate insanely once you put some miles on them and it's not because the engines last forever.
        • 5 Years Ago
        My local dealer has Californias stacked up like cord wood.
        • 5 Years Ago
        Use some critical thinking and look at their US sales numbers: Static. As in "not dropping any time soon." With Asia and Russia booming (their stated growth regions), I suspect people like you whining about service costs aren't the issue.

        The problem is that they make a HUGE amount from licensing and merchandise, which has been hit hard by the downturn and Chinese knock-offs. Between that and Maserati's intention to move down-market into BMW 5-series territory, leaving the Ferrari fold, their margins are taking a hit.
        • 5 Years Ago
        Read a long thread by a Ferrari owner a while back, which basically said anything newer than the F360(just the entry level F car I don't know about the 456/599 etc), the reliability is quite a bit better than anything older. Now obviously they aren't Toyota/Honda reliable, but they aren't *that* bad either. Maintenance cost is somewhat more expensive than 911 variants, but not ridiculously so.

        Having said that, it's still a good idea to do as much research as possible with regard to the cost of wear and tear items and regular maintenance.

        • 5 Years Ago
        "Rich" people don't buy Ferraris. They can't afford them.
        "Wealthy" people buy them. For more on the differences between those two, please refer to Chris Rock's "Never Scared".

        That being said. If you can afford a $200,000+ car/toy that will mostly be driven on weekends & such, I'm SURE you can caugh up the extra $10k for a service you do every couple of years considering the low mileage that is actually put on.

        As for why they are laying people of...

        I'm not sure if you actually read the article or what is happening in Europe as far as their economy goes. But things aren't going very well for them.
        • 5 Years Ago
        they just have to get with the program and make electric racers instead of old ass steam locomotives.
        and that's just a 150kW electric. 500kW in an electric is easy and without weighing more.
        • 5 Years Ago
        "Shaq is rich. The white man who signs his check … is wealthy. "Ah, here you go, Shaq. Go buy yourself a bouncing car. Bling, bling!" Chris Rock, Never Scared.
        • 5 Years Ago
        Ferrari dealers are for the most part unregulated when it comes to service. They charge whatever they want because they know they can get away with it. It's not Ferrari's fault.

        I know a guy who does Ferrari services from his own garage and has people come there from other States to have their cars serviced. He replaces 348, 328, etc clutches for less than $1000 and does a damn site better job than any of these crooked dealers do.
        • 5 Years Ago
        I liked the second part of the joke better "Oprah is rich, but Bill Gates is wealthy. If Bill Gates suddenly woke up with Oprah's money, he'd slit his throat."
      • 5 Years Ago
      "Ferrari has said that it will cut production from 20,000 units this year to 11,100"...no, no, no. Ferrari can't come close to that numbers. Reread the Bloomberg story. The 20k quote is from a union representative:
      • 5 Years Ago
      Ferrari lost it's golden child. So sales have dropped. Besides the new 458 really isn't that great looking of a car. Give me a califorina any day. I bet mercedes sales go up this year even though schumaker isn't doing very well.
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