Was One Of The WORST Ideas Taking Ferrari Public?

In the world of brands, it's hard to beat the likes of a company like Ferrari. That's because while the supercar manufacturer is known for its Formula 1 racers and high-priced road cars, it is the object of affection for many across the globe.

Its branded accessories and apparel is sold, frankly, everywhere. Hell, there's even a theme park.

But, when it comes to the business of selling autos, Ferrari may have made one mistake. The company went public under the ticker RACE in 2015. It's been clear that since then, the focus of the company has changed.

There's a chase for volume, which never was the focus of Ferrari. This was the company that firmly believed in producing one car less than demand so that it could fund its racing operation. Now, the prancing horse is producing a sport-utility vehicle and a V6-powered entry-level sports car in an effort to sell more vehicles under its banner.

Luca di Montezemolo, the marque's well-known leader throughout the 1990s and 2000s felt so strongly against going public that he supposedly stepped down after repeated clashes with Fiat Chrysler Automobiles' (FCA) Sergio Marchionne. di Montezmolo felt that the company's long-standing focus on the customer would shift.

Was he right?

Was one of the WORST decisions taking Ferrari public?

runninglogan1 - 8/21/2019 1:24:14 AM

+5 Boost

Are you kidding? Ferrari has skyrocketed in value since going public. It's worth more than Ford now. Seriously.

And they're still uber exclusive. Just try and go buy a Pista for list price and prepare to be laughed at.

valhallakey - 8/21/2019 2:04:26 AM

+3 Boost

I think time will tell. If they get to a bean counting investor return mode it could be a problem in the future. If you keep it private you go where the owner and his cadre decide, which has served Ferarri well for a long time. On the other hand as runninglogan1 mentioned, lots of net worth was built by going public. Probably have a lot to work with on new car development etc... get that SUV to market quicker :)

Foncool - 8/21/2019 6:35:18 AM

+6 Boost

Absolutely the right move, to think about what would have happened if Marchionne didn’t spin Ferrari off from FCA look no further than the current destruction of the Maserati and Alfa Romeo brands by the incompetent Chrysler personnel that running FCA. Elkann needs to spin-off Maserati and Alfa fast to get them away from Auburn Hills and under the direction of Maranello for those brands to survive and prosper.

MDarringer - 8/21/2019 8:00:26 AM

-8 Boost

God you're stupid. Chrysler isn't destroying Alfa and Maserati. That's all Fiat's doing AND Fiat is decimating Chrysler.

TomM - 8/21/2019 10:19:41 AM

+2 Boost

Ferrari was already a public Company in 1960 - and Fiat bought 50% of that company in 1969. What changed was the management - and their outlook on the product - remembering that Enzo only SOLD CARS in order to fund his racing enterprises.