Ferrari Anticipating Back-to-Back Record Profit Years
In 2011, Ferrari broke its own profit record by selling 7,195 cars and raking in a cool €321 million. That was all well and good, but one year wasn’t enough. The low-sales-high-profit automaker was already up 7 percent in total unit sales and 13 percent in profit at the halfway point of the year and the trend hasn’t slowed.
The increases put Ferrari on pace to sell 7,328 units and pull in €304 million in profit, so it has a little work to do in the profit side of the ledger, as 2011 had a strong finish. With the F12 Berlinetta debuting in Europe in September, hitting the second-half growth needed to break its record shouldn’t be a problem.
Ferrari chairman, Luca Cordero di Montezemolo, is set on the fact that the company will break its own record profits again, making it back-to-back years of setting records. This is all coming while the rest of the automakers, particularly those in Europe, are struggling to sell cars and lower losses. This shows that Ferrari obviously knows how to keep its operating costs low and still maintain quality control and customer retention.
Regardless of it breaking the record, seeing a low-volume auto manufacturer making that type of profit is impressive. To boot, Ferrari is just about in line with the pricing of its competitors, Lamborghini and Aston Martin, so it’s not a matter of Ferrari just jacking up prices in hopes of profit. Simply good business by itself and parent company, Fiat S.p.A., is all we can attribute this success to.
Source: Left Lane News