Daily Management Review

Range Of Road Cars Of Ferrari To Be Expand, But Not As Much Its Rivals


Range Of Road Cars Of Ferrari To Be Expand, But Not As Much Its Rivals
The marketing and sale of its easier-driving grand touring cars is planned to be expanded significantly by the Italian premium sports car maker Ferrari NV, said the company’s Chairman John Elkann while addressing a gathering of enthusiasts of classic cars at a storied golf resort on the Pacific coast. Elkann however also added that within this strategy, the company would not be aimed at rivaling the yearly sale volumes of its rival car maker Porsche.
In addition, Elkann also stressed further that Fiat Chrysler Automobiles NV is still open to bids for mergers and acquisition with other car manufacturers. Elkann is also the chairman of Fiat Chrysler. However, Elkann clearly stated that the company is still destined to remain in an independent position.
A merger with French automaker Renault SA was proposed by Fiat Chrysler in May. However that proposal was cancelled following an intervention by the French government - which is a shareholder of Renault. This resulted in the proposed merger being withdrawn by Elkann. Earlier this month, the message was sent about the withdrawal of the proposed merger to the French car maker by Fiat Chrysler Chief Executive Mike Manley.
Pebble Beach is known for the annual Concours d'Elegance which is the occasion when some of the world's rarest vintage automobiles are brought there by wealthy collectors for to be admired by car lovers as well as to be sold. Elkann visited the annual Concours d'Elegance which is also attended by manufacturers of premium cars to show their latest new premium models.
The flashy, high performance sports cars are the signature products of Ferrari. The most popular models on auction blocks and at enthusiast events are the more understated GT, or grand touring, cars from the 1960s, some with seating for four people, which are also quite popular among fans of vintage Ferraris. The designing of the GT cars was such that it could be more comfortable for the travelers on longer road trips.
Hints that the company would be unveiling a new GT type car in November was also given by Elkann. According to a previous statement made by Ferrari, by 2022, GT cars could account for about 40 per cent of the total annual sale of the company compared to the current volume of about 32 per cent of total sale of cars by the company.
The company has also shared it plans with investors of increasing its revenue generation from the 3.4 billion euros in 2017 to reach 5 billion euros ($5.54 billion) by 2022. In order to compete with the a growing range of sport utility vehicles being offered by a number of premium sports car brands such as the Lamborghini Urus, a model called the Purosangue is being planned to be launched by Ferrari, the company said.
The company’s closest rival in the premium car segment, Volkswagen AG’s Porsche AG is currently selling more than 250,000 sports cars and sport utility vehicles every year. 
But Elkann said that his company does not aim to reach the kind of annual sale volume as reached by Porsche.