The automotive industry across the world is going through a very challenging phase thanks to several reasons such as slowdown of growth in China, tightening emissions control, shift towards sustainable mobility, and lack of clarity on government regulations in many countries; and now the coronavirus outbreak has almost brought the industry to the breaking point. However, things for the extreme top-end of the automotive market aren’t the same as most of the major players in the segment have been posting stellar growth numbers over the last several years. And the name that has been consistently on the top is that of Ferrari. The Italian marque sold a record 10,131 cars in 2019 while making a massive profit on each unit it sold. A new report published by Fiat Group World, an unaffiliated Fiat Chrysler Automobiles website, claims Ferrari had a 23.2 percent operation margin on each car it sold in 2019. On doing simple math, the profit on every Ferrari sold comes out to €86,369 (about $95,000 according to current exchange rates).
An operating margin of 23.2 percent on each unit is absolutely mind-boggling, especially considering the current market. However, one needs to keep in mind that 2019 wasn’t a one-off year for Ferrari in terms of profit earned on each car sold. In fact, Ferrari has been the most profitable automotive brand across the world for several years now. To put things into perspective, the report by the publication went on to compare the operating margin of Ferrari with several other automobile manufacturers. The report says German automobile giant BMW would need to sell 30 vehicles to equal the earnings of one Ferrari sold, while VW would need to sell 56 units. Mercedes, on the other hand, will need to sell 67 cars to make the profit. However, things are a lot different for mass-production entities. A whopping 908 Ford vehicles and 928 Nissans will need to fly off the dealerships to make the same amount of profit made by Ferrari. While Ferrari has been consistently growing over the last few years, 2020 might not be the same for the Italian supercar manufacturer; especially with the forced lockdown of the factories because of the coronavirus pandemic.
[Via: Motor 1]
