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Ferrari Expands Engine Manufacturing Business

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Maserati V-6 engine

Maserati V-6 engine

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Ferrari is going against the industry trend of trying to sell more and more cars with each passing year, by vowing to limit sales in order to protect the exclusivity of its brand as well as the value of the cars it’s already sold.

But Ferrari is still a business, and like any good business it needs to grow, not only to earn stronger returns on its capital but also to secure its future and fund the development of ever-faster cars.

So how does Ferrari go about earning more revenue despite selling fewer cars (Ferrari is expected to sell 7,000 cars in 2013 versus the record 7,318 it sold last year)?

We outlined three strategies previously: personalization, licensing and restoration work.

But there is one additional source we forgot to mention, and that is manufacturing engines for fellow Fiat Chrysler Group brands such as Maserati and potentially Alfa Romeo.

Ferrari has announced it is expanding its engine manufacturing facilities at its main site in Maranello, Italy, at a cost of some 40 million euros (approximately $52 million). The Italian firm has also said it will hire around 250 staff to work in the expanded engine plant.

The bulk of engines it will be producing will be V-6 and V-8 units destined for Maserati’s expanding lineup, including models such as the Quattroporte and Ghibli sedans and upcoming Levante SUV. Maserati currently sells less than 10,000 cars annually but is hoping to boost this figure to around 50,000 within the next several years, so you can see how much more engines it will need.

There are reports that some of these engines will also appear in Alfa Romeo models like the upcoming Giulia and rumored flagship sedan.

Ferrari currently manufacturers around 30 engines per day for Maserati but will be able to build almost twice as many once the new facilities come online.

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