Author Topic: RACE - Ferrari  (Read 55567 times)

merkhet

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Re: RACE - Ferrari
« Reply #20 on: October 11, 2015, 06:52:54 AM »
can someone explain if existing Fiat shareholders ( FCAU) get shares of RACE like a spin off? Sorry ,I have not read the IPO filing documents

http://www.sec.gov/Archives/edgar/data/1648416/000119312515341434/d61094df1a.htm

Yes, holders of FCAU will receive the remaining ~80% of RACE shares that Fiat owns at the beginning of 2016.

By the way, I hate the new sub $100k Maserati.  They are everywhere on the street on NYC lately.  I can say that the Maserati brand has already been cheapened.  In summary, I think luxury brands are great franchises.  But I think the urge to increase volume or go down market can often spell the doom of the franchise.           

In this case, I think cheapening the Maserati brand was the point (sort of). Marchionne specifically wanted to extend the Maserati brand downward in order to rake off the people staying with BMW, Mercedes, etc. in that particular price range.

I believe the Ferrari strategy is very different.


portfolio14

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Re: RACE - Ferrari
« Reply #21 on: October 11, 2015, 05:33:58 PM »
I read these books when I researched Coach 2 years ago:

- Trading Up: Why Consumers Want New Luxury Goods--and How Companies Create Them
- Deluxe: How Luxury Lost Its Luster

I think they are relevant here.


Travis Wiedower

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Re: RACE - Ferrari
« Reply #22 on: October 11, 2015, 06:56:54 PM »
I was going to bring up Coach as well. I was very close to buying them two years ago but couldn't get comfortable with the brand dilution. No idea if Ferrari going from 7,000 cars per year to 10,000 starts to dilute the brand or not, just something to be mindful of. That presentation muscleman posted is a pretty convincing case for the bull side though.
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Palantir

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Re: RACE - Ferrari
« Reply #23 on: October 11, 2015, 07:00:47 PM »
Whoooo this is awesome!
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pantheman

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Re: RACE - Ferrari
« Reply #24 on: October 12, 2015, 05:26:12 AM »
Ferrari doesn't make engines for Alfa Romeo, only Maserati.


Ferrari is now making engines for Alfa. The first will be for the Giulia Quadrifoglio. I'd imagine they'll try the Ferrari engines as an M or AMG type class in the Alfa lineup.

Phaceliacapital

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Re: RACE - Ferrari
« Reply #25 on: October 12, 2015, 07:44:33 AM »
Quadri is already used to mark cars that are at the higher end of the range so wouldn't surprise me.
The harder you work, the luckier you get.

Phaceliacapital

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Re: RACE - Ferrari
« Reply #26 on: October 12, 2015, 07:45:43 AM »
BTW using LVMH as analogy for Ferrari going from 7k to 10k units is crazy.
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investor-man

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Re: RACE - Ferrari
« Reply #27 on: October 12, 2015, 08:04:41 AM »
BTW using LVMH as analogy for Ferrari going from 7k to 10k units is crazy.

I agree. If Ferrari started producing cheaper cars then I might understand the comparison, but that's not the plan.
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rkbabang

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Re: RACE - Ferrari
« Reply #28 on: October 12, 2015, 09:04:42 AM »
By the way, I hate the new sub $100k Maserati.  They are everywhere on the street on NYC lately.  I can say that the Maserati brand has already been cheapened.  In summary, I think luxury brands are great franchises.  But I think the urge to increase volume or go down market can often spell the doom of the franchise.           

I wasn't aware that Maserati had a sub $100K version now.  This explains why I see them all the time now in New Hampshire.  Every once in a great while I'll see a Ferrari or Lamborghini, but I'll see a Maserati on the streets at least weekly if not more lately. It has definitely effected how I view the brand.  It is more like seeing a Model S was two years ago (I see these daily now) than it is like seeing a Ferrari.


Jurgis

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Re: RACE - Ferrari
« Reply #29 on: October 12, 2015, 11:26:37 AM »
"Before you can be rich, you must be poor." - Nef Anyo
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