Amid waiting times of up to three years for certain models, Ferrari’s CEO has confirmed that the company won’t rush into ramping up production to meet high demand.
In an exclusive interview from Pebble Beach, Ferrari CEO Benedetto Vigna explained the brand’s focus on value and customer satisfaction over volume. “We prioritize value and respect for our clients. The uniqueness, limited availability, and exclusivity of our cars hold great value for our clients. While we could increase production, it wouldn’t be in line with our principles, and we wouldn’t want to disappoint our clients,” Vigna told CNBC.
Balancing growth and exclusivity is pivotal for Ferrari, which has seen its share price surge by 44 percent over the past year, surpassing the valuations of companies like Ford and General Motors. Shareholders expect the company to maintain strong sales and growth figures.
However, Ferrari’s reputation is built on scarcity, with limited production supporting the high value of its vehicles. This scarcity-driven model demands that the company remains cautious about production expansion.
Last year, Ferrari produced 13,221 vehicles, marking an 18.5 percent increase from 2021. Nevertheless, demand continues to outstrip supply, resulting in waiting lists of three years or more for models such as the new Purosangue SUV. Some analysts believe Ferrari could easily sell twice the number of cars it currently produces.
Founder Enzo Ferrari famously stated that the company would build “one less car than the market demand.” Today’s shortage is even more pronounced, with suggestions that the company could easily double its current output. Although Ferrari is constructing a new factory for hybrid and electric vehicles, the extent of production increase remains uncertain.
Vigna noted that despite supply constraints, Ferrari is successfully attracting younger customers. The brand’s client base has expanded for ten consecutive quarters, with 30 percent of new clients being under 40 years old.
Vigna emphasized that purchasing a Ferrari should remain an aspirational experience, not something easily attained. He underlined the sentiment by saying, “Owning a Ferrari starts from the moment you first lay eyes on one. It’s not an easy acquisition.”
Chasing Success on the Track
While Ferrari’s legacy is tied to Formula 1 racing success, recent years have posed challenges for the team. Currently, Ferrari sits in fourth place in the F1 team standings, trailing behind Red Bull, Mercedes, and Aston Martin. Vigna highlighted the team’s dedication to enhancing their racing cars.
“Our DNA is rooted in racing,” Vigna emphasized. “We have a car that’s our fastest yet, but it’s not the fastest on the track. Continuous improvement is our focus.”
Vigna referenced Enzo Ferrari’s belief in preserving the pursuit of progress. “This is our mandate in racing and all our endeavors. Progress is the priority,” he noted.
Regarding the possibility of famed Mercedes Formula 1 driver Lewis Hamilton joining Ferrari, Vigna underscored the commitment to current drivers Charles Leclerc and Carlos Sainz Jr. “They’re performing exceptionally well and competing. Our main objective is to enhance the car’s competitiveness.”
