OV9

Here's my take on Ferrari's Q2 2023 Results and their business model:

https://karenable.com/ferraris-q2-2023/

Comments?

Hard to see them stopping being a money press anytime soon although your comment on the companies "value" compared to a mass manufacture was interesting.

If not too big to fail then maybe too cool?

Will be very interesting to see how the brand adapts to EV.

Shame they didn't seem to make a song and dance about the Nurburgring win too, it was also historic (and epic)

RobYob wrote: Sun Aug 27, 2023 10:19 am Hard to see them stopping being a money press anytime soon although your comment on the companies "value" compared to a mass manufacture was interesting.

If not too big to fail then maybe too cool?

Will be very interesting to see how the brand adapts to EV.

Shame they didn't seem to make a song and dance about the Nurburgring win too, it was also historic (and epic)

My guess is the EV transition is their biggest long term risk right now.

Be quite nice to have such a high value brand that isn't neccessarily directly coupled with driving enjoyment.

And a nice fat warchest.

How McLaren or any other "pure" performance brand adapts will be tricky.
Unless lightweight batteries arrive promptly on the scene.

Your musings should possibly prompt another thread, but I agree it is going to be really interesting to see the direction that Sports/Super/Hyper/Ultra car manufacturers (and their brands) will take as we all head towards the EV precipice.

And if we simplify things and look at only two distinct buyer groups
- those with lots of disposable income who aren't CGs but fancy something sporty/dramatic/that you can't afford. Include speculators/investors in here.
- CG's. Who also also need to have an increasing level of disposable income of course (reading left to right in the above classifications), but are more driven by the capabilities of the product.

..... how will their response to this change differ?

Interesting times ahead. Particularly with the increasingly loud (general global) sustainability drum-beat.

Interesting.. seems likely they’ll continue to create demand through controlling stock and new model launches.

It’s a brand people are passionate about that I don’t see repeated with its British competitors. At my gym recently, AM had a DBX 770 demo drive with a racing driver giving guidance, a few freebies given away and it all seemed to be a bit, well not desperate, but close to it! Very few people took them up on their offer and I’d be amazed if they managed even one sale. Ferrari doesn’t need sales drives… as the Purosangue order book shows!

As an aside, I had an email this week from Maranello with 3 296 GTBs in stock (800-6000 miles, £249-269k), along with 15-25 new 992s available at Porsche and M3 Tourings available, there does seem to be a softening in demand for “luxury” cars.. not a great time to try something different, such as an EV Ferrari but then maybe their customers are less concerned with interest rates.

Finally, carwow did a drag race between a 992 Turbo S and a Lucid Air (1111hp), the lucid won every race but I know which one I’d rather have, elec cars just seem emotionless.. it’ll be interesting to see if anyone can make an electric vehicle feel alive, but I guess Ferrari have a better than average if not the best chance of creating it.