Italian sports car maker Ferrari Tuesday clocked a record profit for 2013 as it sold fewer cars to further polish its badge of exclusivity.

The division of Fiat Chrysler Automotives NV said in a statement its net profit rose 5.4% to 246 million euros ($246 million) on revenue of EUR2.3 billion, up 5%.

Its net financial position also hit a record, totaling EUR1.36 billion.

Ferrari was able to hit a record profit because of ancillary businesses like its network of retail stores, licensing agreements and the sale of merchandise on the Internet. It recently changed the legal status of the division responsible for these businesses to allow it to manage them more effectively.

Ferrari also offers services such as the customization of newly purchased cars and the restoration of older models.

Ferrari, which will present a new version of the California convertible at the Geneva Motor Show in early March, announced last May its intention to sell less than 7,000 vehicles. It ended up selling 6,922, 5.4% fewer than it did in 2012.

Ferrari can afford to take a pause because it is one of the biggest brands in the automotive industry, and sells more cars than any of its competitors in the market segment for luxury sports cars.

It also has a waiting list of patient customers that doesn't risk getting shorter.

Like other makers of this type of car with prices fetching more than EUR100,000 apiece, Ferrari's strategy has always been to sell fewer vehicles than the market demands.

Ferrari's earnings were published with those of its parent company on Jan. 29, save its net profit figure.

The new Enzo Ferrari Museum (MEF) was opened today in Modena by Luca di Montezemolo and Piero Ferrari, the son of the man who started off the amazing story of a marque recognised today as the strongest in the world.

The choice of 18 February for the reopening of the MEF was in recognition of the anniversary of Enzo Ferrari's birth on 18 February 1898.

The new life of the spectacular museum has begun with the large and beautiful main wing: here, as well as seeing the most important cars in the history of the Ferrari driver, constructor and creator of the Scuderia, you go into a veritable "time machine" that will take visitors through 100 years of history via multiple projections that will immerse the public in images, sounds and emotions. The 18 projectors weave together the history of Modena motoring, the story of Enzo Ferrari and his deeds and the world in which it all happened.

Art, technology, design, battles and new hopes make up the setting for the triumphs of the great drivers and the most outstanding scarlet cars.

The MEF, which has been entrusted to Ferrari by the Foundation owning the building – made up of the Modena institutions: Commune, Province, Chamber of Commerce and Automobile Club, with the significant support of the Cassa di Risparmio Foundation – further enriches the area's attractions that are already numerous, starting with the Ferrari Museum in Maranello.

From today the two Ferrari museums, which are open every day of the year except for Christmas and the New Year, complement each other in a perfect way: in Modena there's the story of the man who created everything and the cars of his time. In Maranello there's the Ferrari of today and tomorrow, presented via a past of success on the track and the roads.

Ferrari said on Monday Luca Cordero di Montezemolo has been reappointed as chairman and Amedeo Felisa as chief executive of the luxury Italian sports car maker.

The Fiat-controlled company also said in a statement Harald J. Wester, Scott Garberding, Antonio Picca Piccon and Giorgio Fossati had joined the board, replacing outgoing directors Gianni Coda, Sir Christopher Gent, Paolo Monferino and Lindsay Owen Jones.

Sergio Marchionne, the chief executive of Fiat Chrysler Automobiles (FIA.MI) remains on the board, along with three other colleagues, Richard Palmer, Marco Piccinini and Alfredo Altavilla.

Piero Ferrari, the son of the company's founder Enzo Ferrari, remains deputy chairman.

Warranties aren't the most interesting aspect of automotive news but, when they pertain to Ferrari, it's a little different. The Italian automaker will offer owners extended powertrain warranty coverage for up to 12 years, and an extension of the all-inclusive manufacturer's warranty.

Under the "New Power Warranty" scheme, Ferrari will offer extended powertrain coverage for new cars beginning May 1. It acts as a sort of third stage of coverage, following the original manufacturer's warranty--which covers repairs for up to three years--and an available extension that covers years four and five of ownership.

The amount of time the warranty is effective presumably depends on a vehicle'smileage, and the extended coverage is subject to annual renewal. There's also an annual 15 percent "incentive" required for renewal, and an additional 15 percent if no warranty work was carried out the previous year, Ferrari says.

The 12-year New Power Warranty can also be added to existing cars' coverage, after a technical inspection.

This is the latest attempt by Ferrari to increase the after-sale services available to customers. In 2011, the company launched Ferrari Genuine Maintenance, a free 7-year scheduled maintenance program aimed at helping owners properly maintain their cars and increasing resale value.

The program is available with the purchase of a new 458, FF, F12berlinetta, or California and remains in effect regardless of mileage.

Today during an investor download at Fiat-Chrysler headquarters in Auburn Hills, Michigan, FCA CEO Sergio Marchionne rather unsympathetically reemphasized what he’s been saying all along: “Ferrari is not for sale. Hopefully we won’t have to deal with this question again.”

Citing private broker valuations for the brand of €3.3 to €5.4 billion and entirely sold out production, Marchionne advised “all of you guys who have plans for what they could do with the brand if they got it into the right hands” to keep to themselves. Plans are to keep production capped at 7000 units per year at least until 2018, but Marchionne feels Ferrari could expand to 10,000 units to serve emerging markets without compromising the brand’s uniqueness.

As for the product development for the next four years, Ferrari plans to maintain a full line of 8- and 12-cylinder high-performance street cars and to launch a new model each year. Each model will have a four-year lifespan, followed by “M” versions that will last for another four years. Accompanying these models will be special-series cars aimed at high-end customers. (Think the XX program or variants like the Speciale.) As one of the most recognizable brands in the world, personalization programs and licensing will continue to be cash cows.

Guests staying at Shangri-La hotels and resorts in Asia and Europe will soon be able to experience Ferrari’s Challenge one-make racing series up close. Ferrari has formed a partnership with the luxury hotel chain, making it an official hotel partner for the Ferrari Challenge and some of the Prancing Horse’s other motorsport events.

Through the alliance, Shangri-La's most valued guests will be provided with paddock access to races as well as garage tours, hot laps and invites for some Formula One events. As part of the branding execution, Shangri-La's logo will feature on all imagery and activities—including the racing cars, podium and official website—in conjunction with the Ferrari Challenge.

Ferrari fans will also be provided with some special offers at more than 80 Shangri-La hotels and resorts around the globe. And in the future, Ferrari will be staging charitable drives in the cities where Shangri-La hotels are located.

"We are really happy to have among our partners such a prestigious brand as Shangri-La,” Ferrari’s recently appointed team principal Marco Mattiacci said in a statement. “They have a lot in common with Ferrari, to begin with attention to details which can make the difference on the track as well as in providing a superior service to the customer.”

The Ferrari Challenge is a one-make racing series held all over the globe that enables participants to simply fly in, race and the fly home again, all on a single weekend. The series uses 458 Italia-based race cars and sometimes coincides with F1 races.

“Ferrari will have an important role to play within the FCA Group in the upcoming flotation on Wall Street,” di Montezemolo said in a statement. “This will open up a new and different phase which I feel should be spearheaded by the CEO of the group.”

Today’s confirmation ends recent talk of di Montezemolo’s resignation, which is in part due to conflict with Marchionne’s own goals for Ferrari. di Montezemolo has attempted to maintain Ferrari as an autonomous unit, despite Fiat owning 90 percent of the company, and there’s been talk Marchionne wants to reverse the decision to limit Ferrari’s annual sales to 7,000 units and further integrate the company with FCA.

Furthermore, Marchionne has been displeased with Ferrari’s performance in Formula One of late, stating that the performance has been “unacceptable” and that “everyone can be replaced,” including those at the top. The team hasn't won a Drivers' Championship since 2007, despite having one of the biggest budgets in the sport.

"Luca and I have discussed the future of Ferrari at length," Marchionne said today. "And our mutual desire to see Ferrari achieve its true potential on the track has 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."

In his earlier days, di Montezemolo would spend his time racing Fiats and Lancias and then started working for Fiat in 1973. That year he was moved to Ferrari where he became the assistant of founder Enzo Ferrari. He has been elemental in the operation of Ferrari's F1 program over the years, including the hyper-successful Schumacher era, and perhaps more importantly he has played a crucial role in the turnaround of Ferrari's road car operations during the 1990s and the building of the brand—regarded as one of the world’s strongest and most valuable today.

Even away from the automotive world, di Montezemolo has had success in a range of activities including running the Cinzano drinks company, helping launch Italy’s first America’s Cup yacht, and managing the committee in charge of the 1990 football World Cup in Italy. He's also had a hand in controlling some of the world’s biggest luxury firms.

More recently, di Montezemolo has helped launched Europe’s first privately-funded high-speed train service, Nuovo Trasporto Viaggiatori. He’s also been rumored to be eyeing a role in Italian politics as well as running the country’s struggling airline Alitalia, 49 percent of which was just sold to Abu Dhabi’s Etihad. Former Fiat executive Silvano Cassano has just been named CEO of Alitalia, so perhaps we’ll see di Montezemolo there as well.

Ferrari to Boost Production to Keep Pace With Super Rich

By Tommaso Ebhardt Sep 11, 2014 9:04 AM CT

Ferrari will churn out more cars than previously planned after Sergio Marchionne, chief executive officer of parent Fiat SpA (F), takes the top job at the supercar maker next month.

Marchionne, who will become Ferrari chairman on Oct. 13, said he plans to gradually increase production of vehicles like the $1.3 million LaFerrari to keep pace with growing numbers of ultra-wealthy consumers.

“If that class increases, we should be able to follow them,” Marchionne said today at an event in Balocco, Italy. Otherwise, “the waiting list will become too long, and people get tired.”

The plan contrasts with the strategy by Luca Cordero di Montezemolo, who resigned as Ferrari chairman yesterday after 23 years following a clash with Marchionne. Montezemolo wanted to limit the supercar maker’s volumes to 7,000 cars a year to safeguard its exclusivity. Marchionne indicated in May that the brand had potential to sell about 10,000 vehicles annually.

Ferrari, based in Maranello, Italy, is 90 percent-owned by Fiat and a key component of Marchionne’s plans to expand in luxury cars following the merger to create Fiat Chrysler Automobiles NV. Montezemolo, who took charge of the unit in 1991, wanted to maintain Ferrari’s autonomous status and not become a subsidiary like Volkswagen AG’s Lamborghini.
Photographer: Jeff Kowalsky/Bloomberg

Marchionne, who will become Ferrari chairman on Oct. 13, said he plans to gradually... Read More

“People should not underestimate the importance of Ferrari for the group,” said Marchionne. “Structurally, in terms who we are as carmaker, they have and will continue to define us.”
Financial Needs

Ferrari said today that it expects deliveries to rise 5 percent this year as it works to decrease the time customers have to wait for their cars. Its net income in the first half rose 9.8 percent to 128 million euros ($166 million).

Marchionne will take the top job at the unit the same day that shares of the merged entity FCA are set to start trading in New York. He said today that while the group doesn’t “technically” need to raise money to finance his 55 billion-euro expansion plan, FCA’s new board will review options in late October.

The CEO said today that Fiat is on track to achieve its 2014 earnings goals, helped by sales of Chrysler in North America. The Italian manufacturer is seeking to increase profit by as much as 18 percent this year.

To keep boosting earnings in the coming years, Fiat Chrysler plans to roll out more upscale models like the Maserati Ghibli sedan, which uses engines developed and built by Ferrari. While Marchionne says there are no plans to sell shares in the supercar unit, it isn’t critical to the group over the long term.

“Do I think they are essential to the configuration of FCA forever? The answer is no,” Marchionne said today. “But they represent the best of what a carmaker can be.”

To contact the reporter on this story: Tommaso Ebhardt in Milan at tebhardt@bloomberg.net

To contact the editors responsible for this story: Chris Reiter at creiter2@bloomberg.net Naomi Kresge

Ferrari to Boost Production to Keep Pace With Super Rich

By Tommaso Ebhardt Sep 11, 2014 9:04 AM CT

Ferrari will churn out more cars than previously planned after Sergio Marchionne, chief executive officer of parent Fiat SpA (F), takes the top job at the supercar maker next month.

Marchionne, who will become Ferrari chairman on Oct. 13, said he plans to gradually increase production of vehicles like the $1.3 million LaFerrari to keep pace with growing numbers of ultra-wealthy consumers.

“If that class increases, we should be able to follow them,” Marchionne said today at an event in Balocco, Italy. Otherwise, “the waiting list will become too long, and people get tired.”

The plan contrasts with the strategy by Luca Cordero di Montezemolo, who resigned as Ferrari chairman yesterday after 23 years following a clash with Marchionne. Montezemolo wanted to limit the supercar maker’s volumes to 7,000 cars a year to safeguard its exclusivity. Marchionne indicated in May that the brand had potential to sell about 10,000 vehicles annually.

Ferrari, based in Maranello, Italy, is 90 percent-owned by Fiat and a key component of Marchionne’s plans to expand in luxury cars following the merger to create Fiat Chrysler Automobiles NV. Montezemolo, who took charge of the unit in 1991, wanted to maintain Ferrari’s autonomous status and not become a subsidiary like Volkswagen AG’s Lamborghini.
Photographer: Jeff Kowalsky/Bloomberg

Marchionne, who will become Ferrari chairman on Oct. 13, said he plans to gradually... Read More

“People should not underestimate the importance of Ferrari for the group,” said Marchionne. “Structurally, in terms who we are as carmaker, they have and will continue to define us.”
Financial Needs

Ferrari said today that it expects deliveries to rise 5 percent this year as it works to decrease the time customers have to wait for their cars. Its net income in the first half rose 9.8 percent to 128 million euros ($166 million).

Marchionne will take the top job at the unit the same day that shares of the merged entity FCA are set to start trading in New York. He said today that while the group doesn’t “technically” need to raise money to finance his 55 billion-euro expansion plan, FCA’s new board will review options in late October.

The CEO said today that Fiat is on track to achieve its 2014 earnings goals, helped by sales of Chrysler in North America. The Italian manufacturer is seeking to increase profit by as much as 18 percent this year.

To keep boosting earnings in the coming years, Fiat Chrysler plans to roll out more upscale models like the Maserati Ghibli sedan, which uses engines developed and built by Ferrari. While Marchionne says there are no plans to sell shares in the supercar unit, it isn’t critical to the group over the long term.

“Do I think they are essential to the configuration of FCA forever? The answer is no,” Marchionne said today. “But they represent the best of what a carmaker can be.”

To contact the reporter on this story: Tommaso Ebhardt in Milan at tebhardt@bloomberg.net

To contact the editors responsible for this story: Chris Reiter at creiter2@bloomberg.net Naomi Kresge

Ferrari has agreed to pay a $3.5 million fine to U.S. regulators for failing to report three fatal crashes in its cars.

The National Highway Safety Administration says Ferrari should have reported the crashes because all auto manufacturers, no matter how small, are required to report incidents in which a vehicle defect is alleged to have caused a death.

Having small U.S. sales, Ferrari used to be exempt from a more stringent requirement that mandated large-volume auto manufacturers to submit quarterly "early warning reports" that detail all potential safety concerns in their cars.

That changed when Ferrari's parent company, Fiat, acquired control of Chrysler Group, now Fiat Chrysler Automobiles (FCAU).

NHTSA found out about the alleged incidents after submitting an information request to Ferrari. Court papers did not reveal the nature of the incidents or when they occurred.

As part of its agreement with NHTSA, Ferrari has said it will also train its employees on legal reporting requirements.

"Ferrari has already begun implementation of new procedures to ensure full compliance in the future," the automaker said in a statement.

The fine is relatively small compared to the amounts other automakers have been compelled to pay. General Motors paid $35 million for failing to promptly recall cars with an ignition problem. Ford Motor Company earlier paid a $17.4 million fine for allegedly delaying a recall.

Fiat Chrysler Automotive recently announced plans to spin off Ferrari as a separate company in a stock sale.

According to Ferrari, if you want to invest in classic cars, then the work of Maranello’s finest seems a pretty safe bet (although we’re by no means qualified to give financial advice).

During 2014, nine of the top ten most expensive cars sold at auction were Prancing Horses, with the top spot taken by the $38.115 million paid for a 1962 Ferrari 250 GTO (above), sold by Bonhams, in Monterey, USA.

Second was another Monterey sale, by RM Auctions, where a 1964 Ferrari 275 GTB/C Speciale dropped for $26.4 million. And at a Bonhams sale in Goodwood, UK, a 1954 Ferrari 374-Plus Spider Competizione went for $18.4 million.

The US was the biggest market for rare cars in 2014, and total sales there rose from $1.2 billion to 1.3. Ferraris overall saw an increase in value of 43 percent.

The remaining Ferraris that fetched super money were:

1961 Ferrari 250 GT SWB California Spider ($15.180 million, Gooding and Company, Pebble Beach USA)

1964 Ferrari 250 LM ($11.550 million, RM, Monterey USA)

1967 Ferrari GTB/4, ex-Steve McQueen ($10.175 million, RM, Monterey USA)

1958 Ferrari 250 GT LWB California Spyder ($8.800 million, RM, Scottsdale USA)

1966 Ferrari 275 GTB/C ($7.860 million, RM, Monte Carlo, Monaco)

1953 Ferrari 250 Mille Miglia Berlinetta ($7.860 million, Bonhams, Monterey USA).