Ferrari vs. Ferrari: Do sports car makers need motorsports?1 min read . Updated: 04 Nov 2020, 11:22 AM IST
- The Italian company’s problems on the track this year don’t seem to be affecting its ability to sell cars to the super-rich
Does racing help the business of selling cars? Ferrari’s capacity to churn out impressive results despite its worst performance on the track in years suggests the link isn’t a strong one.
The Italian auto maker has emerged from the spring lockdowns with a slight dent to this year’s numbers but its profit engine running smoothly. It said Tuesday that it sold slightly fewer vehicles in the third quarter, but only due to production planning. Orders in October were particularly strong, suggesting Ferrari’s noisy sports cars remain as popular as ever among the super-rich.
The company’s performance in the motor-racing season, which started in July after a delay due to the pandemic, is another matter. Its team currently ranks sixth in the so-called constructor standings for 2020 compiled by Formula One on the basis of Grand Prix results. It hasn’t finished a year that far down the leaderboard for decades. Ferrari Chairman John Elkann has talked in the Italian press of “car design mistakes."
A high stock-market valuation suggests investors see little risk of any impact on the Ferrari brand from the racing team’s woes. So why does the company bother with expensive motor sports at all?
This story has been published from a wire agency feed without modifications to the text