Ferrari’s (NYSE:RACE) Superfast Sold Our Before Geneva Debut

Ferrari’s (NYSE:RACE) Superfast Sold Our Before Geneva Debut

Geneva: Ferrari’s (NYSE:RACE) 812 Superfast Sold Our Before Its Debut

$RACE, $FCAU

Ferrari debuted its fastest production car in its history, underscoring its reputation for Superhigh performance. 

The 812 Superfast debuted at the Geneva International Motor Show Tuesday with a 12-cylinder, 800-hp engine that accelerates to 62 mph in as little as 2.9 secs, making it Ferrari’s most powerful production model ever.

The new flagship Supercar has sold out for Y 2017, Ferrari CEO Sergio Marchionne said.

“We have to make sure the demand is there, and we always have to supply less than the demand,” he said.

Having promised its shareholders a boost in sales and profit following its Y 2015 IPO, Ferrari faces the challenge of selling more cars without diluting its allure and exclusivity.

Mr. Marchionne is likely to reach his target of selling 9,000 cars annually by Y 2019, and he is pushing high-performance cars like the 812 Superfast to maintain earnings momentum.

By keeping supply capped by model is the Key to protecting Ferrari’s reputation. “We need a much wider range of products than we’ve got today,” in order to increase volumes beyond 9,000 vehicles, he said.

There’s still a “phenomenal amount of space” to expand Ferrari’s range without massive investment in new technology and platforms, Mr.  Marchionne has said in the past.

Such low-risk expansion is critical for the iconic manufacturer as it competes on its on without the backing of a bigger industry player, as does Lamborghini and others.

Ferrari’s  edge in the sector are its high-powered, hand-crafted Supercars, HyperSupercars, and Special Editions, which these days are appearing with increasing frequency.

The manufacturer sold out its $2.1-M Special Edition LaFerrari Aperta last year even before its debut, and it’s rolling out 350 limited-run models of its 5 main lines to celebrate its 70th Anniversary this year.

The 812 Superfast replaces the F12 Berlinetta, the car can exceed 210 mph.

Borrowing from the automaker’s Formula 1 designs, it’s aimed squarely at a core audience of racecar aficionados. The new model has flaps in the underbody that suck in air when the brakes get hot. With a high fastback tail and curving wheel arches, it is meant to evoke the 1969 365 GTB (Daytona), while adding modern aerodynamic lines.

Spun off from Italian-US automaker Fiat Chrysler Automobiles NV (NYSE:FCAU) in Y 2015, Ferrari posted record profit last year and plans to increase earnings by at least 8% this year. The company previously limited production to 7,000 annually to protect its exotic allure and now expects to sell about 8,400 vehicles this year after 8,014 units in Y 2016.

The 812 Superfast is priced at $308,000 in the US, sans Tax and License.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 65.48 8 March 2017 -0.11 65.92 65.94 65.43 198,800
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Very Bullish (0.53) Bullish (0.41) Very Bullish (0.56) Very Bullish (0.62)

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