Ferrari Earns $42000 Per Car
Ferrari’s financial results for 2006 were released this week, with profits up a significant 16.6% over its 2005 result. Each of Ferrari’s three main business divisions - road cars, competition cars and brand development - achieved positive results, bringing in €1,447 million in revenues. Final profits totalled €183 million, which equates to earnings of just over €32,000 for every one of the 5,671 Ferraris sold. Note that a bulk of Ferrari’s sales command a significant price hike over the recommended retail price due to their limited supply.
Unlike Porsche, which earns a significant portion of its income from its investment in Volkswagen Group, the bulk of Ferrari’s money comes from the sales of its cars. However, it does earn some revenues from its own brand development activities including licensing contracts and the expansion of its retail programme. There are now a total of 13 Ferrari Shops across the globe. It’s little surprise that Fiat, Ferrari’s parent company, wants to increase its 56% stake in the supercar brand to 85%.
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