By tomorrow, Ferrari will be a completely separate entity from Fiat Chrysler, which has owned a majority stake in the Italian supercar manufacturer since 1969. Sergio Marchionne says Ferrari’s value lies in its strength as a brand and its ability to go above beyond just selling cars, making money on not only its accessories and apparel, but also its Ferrari World theme park.
Ferrari’s annual production must stay capped in order to maintain exclusivity, so shareholders will rely on its strength as a brand to help sell branded clothing and accessories and draw people to its theme parks in order to make more money. Marchionne says Ferrari should be treated more like a luxury goods company such as Burberry rather than an automaker like Lamborghini or McLaren, and analysts tend to agree with him.
“A luxury brand is also able to combine a strong global recognition with the perception of scarcity and exclusivity … Ferrari, in our view, embeds all of these characteristics but stands out in particular for its true rarity and exclusivity perception, where it ranks very favorably versus most other luxury goods brands,” Morgan Stanley analyst Adam Jonas wrote in a December report.
In addition to Ferrari World, located in Abu Dhabi, Ferrari will soon open Ferrari Land in Spain in 2016. Eventually, the automaker will have a theme park in every major geographic region it conducts business, and you can be sure that will include North America.
“I think it would be really a crying shame if we did not find a way to extract additional value from a brand as unique as Ferrari,” Marchionne told The Detroit Free Press in October. “Without impacting on the exclusivity and the uniqueness of the car brand, we need to find a way to build business around this to leverage it and use it properly.”