Ferrari profits soared to record figures in 2013. A tactic to intentionally reduce car production and boost exclusivity was the main force behind this success.
The five per cent drop in car sales to 6,922 cars certainly didn’t ruin Ferrari’s triumphant year. The firm’s revenue rose by 5 per cent to a record €2.3 billion last year and its €246 million net profit saw a 5.4 per cent increase on 2012 takings. Trading profit shot up by 8.3 per cent to €363.5m.
Despite increased research and development spending, the €1.36 billion net financial position at the end of the 2013 is the highest in Ferrari’s history. Consultancy Brand Finance named Ferrari the world’s most powerful car brand for a second year.
Ferrari chairman Luca di Montezemolo said: “Despite fewer cars last year, we have improved all the numbers in the financial results. Exclusivity for me is the most important thing. The quality of the sales is more important than the quantity.”
Ferrari’s success is rare in Europe’s struggling car industry and the company will continue to lower production this year before upping it again in 2015.
Montezemolo said: “Making fewer cars but more money is an easy thing to say but hard to do. But I want to keep Ferrari exclusive. And I want to maintain the value of the used cars on the market.”
Customers in the crucial US market are already quite familiar with the brand’s luxury image. There’s a two-year waiting list in the US for a Ferrari. That didn’t stop demand, however, as Ferrari had record deliveries in the North American market throughout 2013.