Advertisement

Ferrari traffic jam? Production to jump 30%

In a move that could frustrate some owners and collectors, Ferrari said that it plans to increase production by 30 percent by 2019.

With Ferrari's coming initial public offering, it's about to become easier for supercar aficionados to get their hands on one of its exclusive vehicles.

In a move that could frustrate some owners and collectors, the high-end automaker said in an SEC filing that it plans to increase production by 30 percent — from around 7,000 cars to 9,000 annually — by 2019.

Ferrari said its decision is in response to "growing demand in emerging markets and from demographic changes as the size and spending capacity of our target client grows."

But it also highlights the difficult balance it has to strike between public shareholders and owners after the IPO.

ADVERTISEMENT

Though the strategy will help boost revenue and profit after the IPO, it is also likely to rankle some Ferrari owners and collectors, who have long relied on the company's tight production numbers to maintain the values of their preowned cars and the prestige of owning a prancing horse.

Unlike most vehicles, preowned Ferraris can often sell for close to the same price, and sometimes more, than new Ferraris. That's because the waiting list to buy certain new models can stretch to more than a year, meaning part of the value of preowned Ferraris is avoiding the wait.

Simon Kidston, founder of Geneva-based collectible-car advisory and research company Kidston, said it "remains to be seen whether by ramping up production, the secondhand values start to soften."

"Ferraris do hold their value quite well compared to Aston Martins or Maseratis or Bentleys," he said.

Increased production will likely have less of an impact on collectors, who shy away from normal production models, Kidston said.