Chrysler 2013 Annual Report Download - page 74

73
Report on
Operations
LUXURY BRANDS
Ferrari
Commercial Performance
During 2013, Ferrari maintained production below the prior year’s level in line with the strategy announced in May 2013 aimed at preserving
the brand’s exclusivity.
A consistently high level of investment in product development has enabled Ferrari to achieve the most innovative and comprehensive
product offering in its history. New model releases during 2013 included the limited edition LaFerrari, which attracted orders for more than
double the 499 unit production run even before its official debut at the Geneva Motor Show, as well as the 458 Speciale, which sports a
myriad of world-class technological innovations.
Product mix was improved, with 12-cylinder models accounting for 25% of total sales as the F12 Berlinetta reached full production and demand
for the FF remained strong. The 8-cylinder models, the 458 (coupé and spider versions) and California30, both continued to experience solid
demand.
The U.S. remained the number one market and Ferrari increased shipment levels moderately to avoid customers experiencing excessive
waiting times. In Europe, shipments in the U.K. were higher following the introduction of the right-hand drive F12 Berlinetta, but down in
Germany reflecting planned reductions. In Italy, government austerity measures continued to penalize demand with sales in 2013 accounting
for less than 3% of the global total.
Performance was very positive in the Middle East and Japan, while shipments in Greater China were reduced as part of Ferrari’s strategy
to preserve brand exclusivity in one of its traditional key markets, particularly in Hong Kong (where Ferrari celebrated its 30th anniversary in
October), while in the People’s Republic of China, where the brand reduced shipments consistent with the decision to maintain lower stock
levels, sales to end customers were substantially comparable with the prior year.
In Formula One, Team Ferrari had a promising start to the season before encountering development issues that affected competitiveness in
the latter part of the year. Despite the setback, Fernando Alonso placed second in the Drivers’ Championship and the team was third overall
in the Constructors’ Championship.
The 458 GT had a rewarding season, racking up victories on three continents, including a hat trick in the GTE Pro class of the FIA World
Endurance Championship and victory in the GTE Am category.
From the Grand Am to the European and Asian Le Mans Series, the Blancpain Series and the International GT Open, the 458 enjoyed a string
of successes once again this season at both the competitive and commercial level. Now in its third season, the mono-brand 458 Challenge
series also remained an extremely popular event with Ferrari owners.
In November, it was announced that all brand-related activities (licensing, retail, franchising and e-commerce) would be transferred to a
wholly-owned subsidiary of Ferrari effective 1 January 2014, enabling an increased and more direct management focus.
Retail volumes continued to grow through the more than 50 Ferrari Stores worldwide and the e-commerce channel. In the licensing area, the
number of agreements was reduced, while profitability was increased. Major licensing arrangements include partnerships with Electronic Arts
and Codemasters.
On the sponsorship front, in 2013 Weichai Power, a leader in the automotive and components sector, and UPS, the major U.S.-based logistics
supplier, both linked their names with Team Ferrari. The Oakley brand will also appear on the drivers’ helmets for the 2014 F1 season.
The brand also continued to strengthen its presence on social networks, with the official Facebook page now counting more than 13 million
fans.