Almost immediately after it was announced that current Fiat Chrysler Automobiles CEO Sergio Marchionne would be replacing longstanding Ferrari chairman Luca di Montezemolo, there were fears production would be ramped up and the exclusivity of the brand tarnished. It was a policy of di Montezemolo to limit Ferrari sales to around 7,000 annually to preserve the brand’s exclusivity and raise prices of both new and used models, but Marchionne is of the belief that strong demand from the growing number of millionaires and billionaires around the world should be met.
Naturally, dealers and existing owners have had some concerns. Increased production is likely to have an effect on prices of used models and with supplies increased Ferrari dealers, notorious for some of the most exorbitant markups in the industry, will likely have to be a bit more accommodating to customers.
Speaking with CNBC at an event in Beverly Hills over the weekend celebrating 60 years of Ferrari sales in the U.S., Marchionne reiterated that Ferrari is likely to produce more cars to keep up with demand but promised to ensure the brand’s status and DNA are preserved.
"You've got to be careful about limiting the ambition of Ferrari because its customer base is an expanding customer base," Marchionne said. "The business itself is in good hands with FCA, as long as we don't screw up the DNA of Ferrari."
Other concerns about Marchionne’s leadership is the possibility that Ferrari may launch its own IPO or even be sold, though this is unlikely despite Marchionne’s own comments that there are very little synergies between Ferrari and the rest of FCA.
"I think that we are good holders of the assets," he said. "The fact that I have come over as chairman goes to the level of commitment that we have made to this business."
Ferrari is expected to produce 7,200 cars this year and Marchionne has said in the past that ramping production up to 10,000 units annually was possible.