Ferrari CEO Notes Substantial Percentage of New Buyers Below 40, Despite Growing Wait Lists
Despite facing wait lists of up to three years for certain models, Ferrari's CEO, Benedetto Vigna, has stated that the company has no intentions of ramping up production to meet the demand.
Speaking exclusively to CNBC from Pebble Beach, Vigna emphasized Ferrari's commitment to maintaining its brand's value and respecting its clients. He explained, "We are a brand that is not looking for volume... We could make more, but that doesn’t make sense. We will offend our clients."
The delicate balance between growth and exclusivity is paramount for Ferrari. Although its share price has surged by 44% in the past year, exceeding the valuations of both Ford and General Motors, the pressure from shareholders to sustain sales and volume growth is countered by Ferrari's tradition of scarcity, which helps preserve the value of its cars.
Ferrari produced 13,221 vehicles in the previous year, marking an 18.5% increase from 2021. Nevertheless, demand continues to outstrip supply, with wait times for models like the new Purosangue SUV extending to three years or more. Enzo Ferrari's famous philosophy, "one less car than the market demand," persists, but the gap between demand and production has widened considerably, leading some analysts to suggest that Ferrari could easily sell twice as many cars as it currently produces.
While the company is constructing a new factory for hybrid and electric vehicles, the extent of the production increase remains uncertain. Vigna affirmed that even in the face of limited supply, Ferrari is successfully attracting a younger clientele, with 30% of new clients being under 40 years old. He said, "Our new clients are 10% younger than all the clients we have in the world. So the prancing horse is kicking strong."
Vigna also stressed that obtaining a Ferrari should not be a straightforward or quick process, as owning one represents the ultimate aspirational achievement. "Getting a Ferrari is an experience that starts from the time you first see a Ferrari," he noted. "It’s not something you can get very easily."