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Revealed – This Is How Much Profit Ferrari Makes For Every Sports Car It Sells



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Aug 19 2018
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Enzo Ferrari was not initially interested in the idea of producing road cars when he formed Scuderia Ferrari in 1929. The Scuderia Ferrari, however, was founded as an Alfa Romeo racing team. It would take another 10 years before Ferrari becoming independent in 1939. Hence, before Ferrari, the brand Alfa Romeo was already involved in car racing since 1911.

 

Italian Ferrari sports car is often compared with German’s Porsche. While Porsche is a great and practical sports car which you can drive to office from Monday to Friday, Ferrari is more exciting for weekends when you need to feel free and show off. If you can’t decide which one to own, the best solution is to get them both.

 

Ferraris can cost anywhere from about US$200,000 to over US$300,000 per car. Of course, it will cost you a leg and an arm for limited edition Ferrari or classic models sold at auction. They are collectible items. A 1963 Ferrari GTO – one of only 36 that were made – was sold this year in a private deal for a mind-boggling US$70 million.

A 1963 Ferrari GTO Sold For 70 Million Dollars

Sources said the car was sold by a German collector to David MacNeil, the founder of WeatherTech, the maker of car floor mats. The previous highest price for a car was US$52 million, paid for another 1963 Ferrari GTO in 2013. According to Marcel Massini, the world’s top collectible Ferrari expert – “We will see a GTO sell for US$100 million in the next two to three years.”

 

But do you know how much Ferrari makes for every supercar it sells? According to a German study conducted by Dr. Ferdinand Dudenhoffer, a director with CAR-Center Automotive Research based in Duisburg, Germany, the Italian luxury sports car Ferrari actually makes an average US$80,000 (£62,756; RM328,600) for every car it sold.

 

That’s a jaw-dropping truckload of profit. In comparison, Porsche, whose cars sell for about US$50,000 to US$150,000, makes only about US$19,000 (£14,900; RM78,000) profit for every car. Ferrari’s profit margin, therefore, is over 4 times that of Porsche. Mercedes, BMW and Audi make lesser – about US$10,500 (£8,230; RM43,130) per new car sold.

Ferrari Test Drive

Dudenhoffer reveals that he determined the average US$80,000 profit by taking annual revenue and EBIT (earnings before interest and tax) for the first half-year reports of 2018 and dividing it by the number of sold cars. Ferrari sold about 8,398 vehicles last year and shipped 8,014 units a year earlier in 2016. Ferrari’s net profit was US$178 million for first quarter this year, a 19% increase.

 

Porsche, on the other hand, sold 246,000 cars last year. Clearly, Ferrari’s profits come from the company’s strategy to keep supplies low in order to maintain high prices. Unlike Porsche, there is no such thing as an “entry-level” Ferrari, as far as the company is concerned. So, either you burn a ton of money for a Ferrari or you watch from the sideline.

 

Maserati, another Italian luxury car manufacturer established in 1914, is the least profitable in the sports car industry – making just US$5,800 per car. Amazingly, luxury Bentley actually loses nearly US$20,000 on every car it sells, while Tesla also loses over US$12,000 on every vehicle it sells.

Ferrari Sports Car Models

Lamborghini and Bugatti, two of four (the others being Porsche and Bentley, of course) luxury cars owned by German’s Volkswagen, do not publish its earnings data, probably because neither was terribly profitable in the past. However, Bernstein Research once estimated Bugatti lost US$6 million (£4.7 million; RM24.6 million) on each Veyron hypercar produced.

 

Things could be about to change though. Lamborghini, which has about 1 billion Euros of annual sales, is launching the Urus SUV this year. Armed with an insane 641 horsepower (twice of Lamborghini Miura) powered by a 4.0 litre biturbo V8 engine, the Lamborghini’s second SUV is estimated to be costing a cool RM1 million a pop.

 

Volkswagen was reportedly planned to bundle Porsche, Bugatti, Bentley and probably Lamborghini eventually into a new product group called “Super Premium.” That would make the brand worth a staggering 100 million Euros. There were also suggestions that Volkswagen should just buy over Ferrari – to add another luxury marque to its family.

Ferrari and Other Sports Car

 

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Comments

Ferrari, an Italian luxury sports car founded by Enzo Ferrari in 1939, makes an average $80,000 per car sold, according to a German study conducted by Dr. Ferdinand Dudenhoffer, a director with CAR-Center Automotive Research based in Duisburg, Germany.

That $80,000 is as much as a whole other luxury car — you could buy a Mercedes-Benz C-Class ($73,500) or Tesla Model X ($79,500).

Ferraris can cost anywhere from about $200,000 to over $300,000 per car.

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