It's been a very happening year for Ferrari at the corporate level, be it the exit of Ferrari boss for 23 years, Luca Di Montezemolo or be it the latest news of their separation from the parent company Fiat-Chryser after a long period of 45 years. Fiat-Chrysler announced recently that they will spin off the famous Supercars brand, offering 10% shares to the public and rest to the current shareholders.
Ferrari has been doing great things under the Fiat umbrella, both in the motorsports and the Supercar business. Infact, Ferrari saw a new high in F1 under the Fiat guidance, and produced some of the most technologically advanced and beautiful cars. But, the concern for all the Ferrari lovers is, where will the brand go from here? Will the new ownership could take things in a very different direction? Who will be the new owners?
Though, Fiat-Chrysler shareholders are certainly happy with the spin off, but brand aficionados (including us) are concerned about what could happen to a publicly traded Ferrari. We are here discussing the future possibilities that can take shape for an independent Ferrari anytime soon.
Sergio Marchionne, Fiat Head and Luca Di Montezemolo, Ex Ferrari boss
End of roads for Ferrari
That's the absolute worst case scenario for Ferrari, but we have to consider the facts. It’s not easy for a Supercar manufacturer to run things on its own without any external funding, considering the amount of money that goes into research and development activities. To top it all, Ferrari is a major name in F1 circuit, and the expenses to race are more than enough to send the company into bankruptcy.
There are only two possibilities that can save Ferrari from such tragic end, either they close the F1 division, or some major investor comes in rescue for the brand. We will discuss both the points later, but the issue is, if declared bankrupt, the company will go down at a fire sale price. Let’s hope it doesn’t come to that.
Ferrari commands a major fan following
Goodbye Formula One
Like we discussed earlier, one of the easy way out could be, to shut down F1 arm. And consider this, Ferrari’s legendary Formula One team neither has won a Constructors’ Championship since 2008, nor have they produced a Drivers’ Champion since 2007. But before racing to any conclusion, think about this- Ferrari generates nearly $400 million as the annual revenue from its Formula One team, thanks to sponsors, merchandising, and occasional race wins. It is the only team to compete each year in F1 since 1950's.
Ferrari only started selling cars to finance its racing teams, but, things have changed ever since and Ferrari’s brand is as strong as it can be. Still, the thought of Ferrari leaving Formula One is unthinkable, unless they decide otherwise.
Ferrari has a rich hostory of motorsports
Introducing the New Ferrari SUV
Yes, that sounds good! After all, everyone needs volumes! In recent years, other Supercars and luxury car manufacturers are foraying into more diversified offerings. Be it Lamborghini or be it Bentley, everyone is running towards adding an SUV in their portfolio. Ferrari could go the same way, as the sales are limited to 7000 units a year only. The main reason is a limited portfolio of only Supercars.
Ferrari’s focus on amazing sports cars has served it well to this point. But, the time is high now, to cater the wider audience, to generate revenue. Who will not want an affordable Ferrari after all? Porsche is an incredible example, looking at the success they got from selling the Cayenne SUV.
But, we guess a prancing horse, sitting high on an SUV, won't make the Ferrari lovers, much happier!
Ferrari FF on which the future SUV can be based
Finding an Investor
And then there’s a major possibility that Ferrari will get snatched up by another automaker. Who wouldn't like to include Ferrari in their brand portfolio, until and unless they are making money. We can find examples everywhere starting from Lamborghini to Porsche, owned by Volkswagen group. Although, the Ferrari family will still own 10% of the company and another 80% is with current Fiat-Chrysler shareholders, including large chunks owned by Fiat’s founding family, the Agnellis, as well as Fiat-Chrysler CEO Sergio Marchionne.
But this is the only and the better option which comes to our mind!
Lamborghini Urus SUV
All said and done, we think nothing much is going to happen in the coming days, as the leadership will still remain in the hands of Pierro Ferrari, Enzo’s only living son, still involved as vice chairman. Though, the roads are not easy ahead of Ferrari and, we hope, the brand passes this test of time with flying colors.
Ferraris have always fetched large chunk of money in auctions. Check our list of top 10 most expensive cars ever sold in auction!