Ferrari CEO Quits In A Huff, Says Company Is Now 'American'
09-10-14, 11:19 AM
#1
Ferrari CEO Quits In A Huff, Says Company Is Now 'American'
http://www.jalopnik.com/ferrari-chai...ium=socialflow
Ferrari CEO Quits In A Huff, Says Company Is Now 'American'
After clashing with Fiat Chrysler CEO Sergio Marchionne, Montezemolo put an end to his 23-year career, stepping down as Chairman of Ferrari, as Fiat head Sergio Marchionne steps into the role.
Luca Cordero di Montezemolo was appointed as President of Ferrari in 1991 by Fiat Chairman Gianni Agnelli after the company started to struggle finding its way forward following Enzo Ferrari's death in 1988.
Montezemolo led Scuderia Ferrari since 1974 and justified Agnelli's decision by winning the Formula 1 Championship again nine years later after a 21-year cold streak, while turning Ferrari's road car division around and into a sale success. Scuderia Ferrari took five consecutive titles under driver Michael Schumacher while the brand's revenue went up 10-fold and sales more than tripled.
Yet with Ferrari's F1 team returning lackluster results in recent years and Marchionne clashing with Montezemolo on Ferrari's future strategy, this era in the company's history had to come to an end.
Instead of keeping Montezemolo's annual production limit at 7,000 cars to retain Ferrari's exclusivity, Marchionne is planning to turn the prancing horse into a luxury brand that can compete more with Volkswagen AG's expanding Lamborghini in terms of sales grwoth and is more involved with Fiat Chrysler's products and technologies as opposed to being mostly independent as it is today.1
Bloomberg reports Montezelomo's response was:
Marchionne stated:
After clashing with Fiat Chrysler CEO Sergio Marchionne, Montezemolo put an end to his 23-year career, stepping down as Chairman of Ferrari, as Fiat head Sergio Marchionne steps into the role.
Luca Cordero di Montezemolo was appointed as President of Ferrari in 1991 by Fiat Chairman Gianni Agnelli after the company started to struggle finding its way forward following Enzo Ferrari's death in 1988.
Montezemolo led Scuderia Ferrari since 1974 and justified Agnelli's decision by winning the Formula 1 Championship again nine years later after a 21-year cold streak, while turning Ferrari's road car division around and into a sale success. Scuderia Ferrari took five consecutive titles under driver Michael Schumacher while the brand's revenue went up 10-fold and sales more than tripled.
Yet with Ferrari's F1 team returning lackluster results in recent years and Marchionne clashing with Montezemolo on Ferrari's future strategy, this era in the company's history had to come to an end.
Instead of keeping Montezemolo's annual production limit at 7,000 cars to retain Ferrari's exclusivity, Marchionne is planning to turn the prancing horse into a luxury brand that can compete more with Volkswagen AG's expanding Lamborghini in terms of sales grwoth and is more involved with Fiat Chrysler's products and technologies as opposed to being mostly independent as it is today.1
Bloomberg reports Montezelomo's response was:
Ferrari is now American, which represents the end of an era.
Discussions over Ferrari's future and its racing potential led to misunderstandings which became clearly visible over the last weekend. I want to thank Luca for all he has done for Fiat, for Ferrari and for me personally.
09-10-14, 11:24 AM
#2
Instead of keeping Montezemolo's annual production limit at 7,000 cars to retain Ferrari's exclusivity, Marchionne is planning to turn the prancing horse into a luxury brand that can compete more with Volkswagen AG's expanding Lamborghini in terms of sales grwoth and is more involved with Fiat Chrysler's products and technologies as opposed to being mostly independent as it is today
09-10-14, 11:40 AM
#3
Lead Lap
I would take that with a grain of salt. Remember Maserati is in the mix as well. I think Marchionne will be making more purposeful grand tourers though with the Ferrari name though...in the vein of the FF model, but better executed.
09-10-14, 12:07 PM
#5
This may be an ignorant response but as a Fiat stockholder, wouldn't restricting production to such a low number ultimately also restrict revenue?
I have to imagine selling a few more cars per year at high profit margins will increase profit/revenue while maybe only slightly effecting exclusivity.
I know Ferrari fans like the fact that they only make a few thousand per year, but it is a business after all
.
At the end of the day, stockholders always want a better ROI.
Just my $.02
I have to imagine selling a few more cars per year at high profit margins will increase profit/revenue while maybe only slightly effecting exclusivity.
I know Ferrari fans like the fact that they only make a few thousand per year, but it is a business after all
.At the end of the day, stockholders always want a better ROI.
Just my $.02
09-10-14, 12:16 PM
#6
Lead Lap
09-10-14, 12:37 PM
#7
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This may be an ignorant response but as a Fiat stockholder, wouldn't restricting production to such a low number ultimately also restrict revenue?
I have to imagine selling a few more cars per year at high profit margins will increase profit/revenue while maybe only slightly effecting exclusivity.
I know Ferrari fans like the fact that they only make a few thousand per year, but it is a business after all.
At the end of the day, stockholders always want a better ROI.
Just my $.02
I have to imagine selling a few more cars per year at high profit margins will increase profit/revenue while maybe only slightly effecting exclusivity.
I know Ferrari fans like the fact that they only make a few thousand per year, but it is a business after all
.At the end of the day, stockholders always want a better ROI.
Just my $.02
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09-10-14, 12:47 PM
#8
1, What we learn is, disagreeing with the boss have only one outcome. The boss always win.
2, I am loving the direction of a volume luxury brand, because I am poor, this would drive the prices down, especially resale value, hell YES, so I can own one someday soon.
If I win the lotto jackpot tomorrow, I would want it to be an exclusive brand to keep the price up, but there is always Pagani or the hyper series LaF, that will never be cheap.
09-10-14, 02:23 PM
#12
This may be an ignorant response but as a Fiat stockholder, wouldn't restricting production to such a low number ultimately also restrict revenue?
I have to imagine selling a few more cars per year at high profit margins will increase profit/revenue while maybe only slightly effecting exclusivity.
I know Ferrari fans like the fact that they only make a few thousand per year, but it is a business after all.
At the end of the day, stockholders always want a better ROI.
Just my $.02
I have to imagine selling a few more cars per year at high profit margins will increase profit/revenue while maybe only slightly effecting exclusivity.
I know Ferrari fans like the fact that they only make a few thousand per year, but it is a business after all
.At the end of the day, stockholders always want a better ROI.
Just my $.02
09-10-14, 02:24 PM
#13
YES I am so happy!!
1, What we learn is, disagreeing with the boss have only one outcome. The boss always win.
2, I am loving the direction of a volume luxury brand, because I am poor, this would drive the prices down, especially resale value, hell YES, so I can own one someday soon. If I win the lotto jackpot tomorrow, I would want it to be an exclusive brand to keep the price up, but there is always Pagani or the hyper series LaF, that will never be cheap.
1, What we learn is, disagreeing with the boss have only one outcome. The boss always win.
2, I am loving the direction of a volume luxury brand, because I am poor, this would drive the prices down, especially resale value, hell YES, so I can own one someday soon.
If I win the lotto jackpot tomorrow, I would want it to be an exclusive brand to keep the price up, but there is always Pagani or the hyper series LaF, that will never be cheap.
