AUBURN HILLS, MI –CEO Sergio Marchionne makes it crystal clear for analysts here: Super-luxury marque Ferrari is not for sale.
Nor is it planning any short-term increase in volume, which will remain at 7,000 cars annually between now and 2018, he says.
Marchionne says there are a growing amount of buyers with the wealth needed to buy a Ferrari, and the brand easily could increase sales to 10,000 units annually with expected access to new emerging markets.
But volume will continue to be limited to protect the brand, which consensus analyst estimates value at €4.3 billion ($6.0 billion).
Marchionne says EBITDA multiples (earnings before interest, taxes, depreciation and amortization) for Ferrari at 10,000 units annually would be “well in excess of €1 billion ($1.4 billion),” what he says is well above the average rate for other luxury goods.
“And that is why Ferrari is not for sale,” he says, attempting to put to rest recurring rumors. “Let me be clear about this. Ferrari is a phenomenal repository of value. Whenever you think we’re going to get hard-pressed for cash, look at this.”
“The brand is 90% controlled by,” he adds. “And that’s where it belongs.”
Product plans call for new models to debut every year rotating between hardtops and spiders, Marchionne says, with 4-year lifecycles for each, followed by “M” versions lasting another four years.
Margins should top 15% by 2018, he says.