Enter the affordable-ish Ferrari
Ferrari has been making waves in recent months as news broke that the company is considering some “mass-market” vehicles – such as SUVs – to bolster sales and provide a route to growth in the future. Of course, the words “mass-market” are a little misleading: Ferrari is, and likely always will be, a brand that is prized primarily for its exclusivity. The question is how much exclusivity the company wants to have.
At present, it would be hard to imagine a company that has more exclusivity than Ferrari, which caps the number of cars it produces each year, and sells vehicles with an entry price of close-to $200,000. And it is that price point that its latest model, the Ferrari Portofino, will be pitched at-or-below.
Ferrari’s share price has risen dramatically and consistently over the past 12 months
SOURCE: Yahoo Finance
The Ferrari Portofino, price as yet unconfirmed, will be replacing the company’s California T, a car that “starts at around $200,000”. Reinventing its more affordable lines gives Ferrari the ability to attract new customers and potentially lower the price point on the type of vehicles it is most famous for, without damaging the perception or timelessness of its top-end motors.
The Portofino, which borrows its name from the beautiful Italian town that Ferrari describes as a “charming tourist port”, will seek to embody the principles of elegance, sportiness, and understated luxury. And it will be powerful, in typical Ferrari fashion. The car has 600 horsepower, thanks to new components and “optimized calibration of the engine management software”, and will be able to go from 0km/h to 100 km/h in just 3.5 seconds. Its top speed is an impressive 199 mph.
So, the car will looks, feel, and drive like a Ferrari. The only question left is: will it come at a Ferrari price?
Dominion holds Ferrari in its Global Trends Luxury Fund.
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