Ferrari to Launch New Model This Fall

Yesterday, in Geneva, Ferrari announced that it would be introducing a new V8-powered model at the Frankfurt auto show later this year, and quashed rumors about a smaller, cheaper spiritual successor to themuch-loved V6-powered 246 “Dino”.

"We will stick to (our intentions) of presenting a new Ferrari model every year after the great success of the 599 (GTB Fiorano)," Chairman Luca Montezemolo stated to a scrum of reporters after a news conference, according to Automotive News.

Ferrari dealers regularly enjoy long waiting lists for their cars. Their latest, the 599 GTB Fiorano, takes two years from the time of order for delivery.

All that's known about the upcoming model is that it will be derived from the mid-engine F430, Ferrari's top-selling model. Speculation points to a new track version,previously the F360 Stradale, or something more aggressively tuned, such as a modern-day F40. Of course, the new car could be something altogether different.

According to a statement issued to Reuters after the conference, "It is a new model on which there's been key research on weight reduction, performance obtained from Ferrari's experience in (Formula 1) competitions, and safety."

Of significant note, Montezemolo averred that Ferrari would never make a smaller, cheaper model.

"Ferrari will not make a small Ferrari," he said. "There is no project."

This will disappoint those who have long speculated about such a car, many of which are less affluent fans of the brand currently capable of purchasing cars in the $70K to $120K range, such as Dodge Vipers, Porsche 911s and Aston Martin Vantage V8s, and soon Audi's new R8, amongst others.

Continuing to quell rumors, Montezemolo dampened expectations of any immediate initial public offering for Ferrari.

"Ferrari will not be listed for many years," he commented. "There is no decision and no need."

Auto news analysts have been speculating about a forthcoming listing, making mention of a stock options program for Montezemolo and other managers that would be dependent on an IPO by Dec. 31, 2010, according to Automotive News.

A Ferrari IPO would beopportunity knocking to savvy investors, as Ferrari is very profitable and extremely stable. Montezemolo added that Ferrari achieved 5 to 6 percent more orders in the first two months of this year than it did for January and February of 2006, which would have the carmaker on target for about 6,000 units in 2007 compared to 5,650 last year. Hardly large numbers compared to a mainstream brand, but considering the profits available to an exotic carmaker like Ferrari, its volume is strong enough without concerns over damaging its exclusive image.

"We will sell the same number of cars in each of our traditional markets, but more in new markets," he said. "We need to maintain Ferrari's exclusivity."

Montezemolo added that he expected Ferrari to be selling more cars in Asia than the U.S., which for the last quarter century has been its largest single market. Even some mainstream brands are experiencing such overseas growth, with Buick now selling more vehicles in China than the U.S.

Fiscal 2006 was the "most successful year in Ferrari history", continued Montezemolo, with revenue growth, greater sales volume and more new markets. Trading profit for the year summed up at $240.5 million (183 million euros), 26 percent higher according to Automotive News, and revenues jumped to $1.84 billion (1.4 billion euros), up 12.3 percent.

The news magazine cited strong sales of the F430 and 599 GTB models, plus greater demand in new markets such as the Middle East and Asia, for the growth.