Ferrari (NYSE:RACE) joined other high-end automakers including Aston Martin, Bentley and Rolls-Royce in skipping this year’s Frankfurt auto show, despite launching 2 new models on the eve of the event.
Ferrari chose to launch the F8 spider and 812 GTS in Maranello, Italy, despite the opportunity of an ideal venue in Germany, Europe’s biggest auto market, and despite the Italian launch costing more money than an appearanc ein Frankfurt.
Ferrari Chief Marketing Officer Enrico Galliera said the use of the Universo Ferrari in Fiorano, a purpose-built building beside the company’s test circuit in Maranello, had cost more than a stand at a big auto show.
Mr. Galliera said the Universo Ferrari is available for 1 month compared with 10 days at the Frankfurt show. It also offered more space.
Show stands were sometimes so small he said that Ferrari was unable to show its entire range or even “offer a coffee to a potential customer,” he said.
Mass-market brands including Toyota, Peugeot, Citroen, Nissan, Kia, Volvo, Mazda, and all of Fiat Chrysler Automobiles’ brands also skipped Frankfurt this year. There have security considerations at Frankfurt.
For some, cost-cutting played a role in their decision, but not for Ferrari.
The iconic Italian Supercar maker will also be absent at the Tokyo and Los Angeles shows later this year. Ferrari’s presence at the Shanghai show has already developed into a separate downtown exhibition space.
The Big Q: Does this mean a final farewell to Ferrari’s presence at these events?
The Big A: Mr. Galliera says Ferrari will decide the relevance of shows on a “step by step” basis meaning Yes for the Aristocrat of the automotive sector and that is certainly bad news for auto shows.
After all, it’s the magic of Supercars that are among the biggest draws at such shows. Mass-market cars we can see every day in the streets.
Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.
HeffX-LTN overall technical outlook for RACE is Neutral to Bearish, overhead resistance is at 159.59 and support at 150.05 all Key indicators are flashing Bearish in here. Ferrari finished at 150.99, -9.75 Tuesday in NY.
Note: Goldman Sachs upgraded Ferrari to ‘buy‘ from ‘neutral ‘calling the stock’s pullback a good “entry point.” “We upgrade Ferrari from Neutral to Buy, offering 15% upside to our new price targets of 182. Our thesis, outlined in Life of Luxury published last month, is fundamentally unchanged post Ferrari’s in-line 2-Q results. We view the stock’s recent pullback (9.5% since July 16) as a good entry point in here.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term investment, and I see it at 200/share in that frame.