Are you a Lamborghini or Ferrari person? This question has been asked for years, and to this day can be a touchy subject. Whether you like the sharp lines of the Lamborghini Aventador or the smooth body of the Ferrari F12berlinetta, the choice is ultimately yours.
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However, let us take a look at the two companies in a different perspective: as businesses.
Ferrari recently changed their business model, moving their focus toward exclusivity and away from quantity, according to a Feb. 18 press release. In the year 2013, Ferrari saw a 5.4% decrease in cars delivered worldwide when compared to 2012, but this decrease did not affect their turnover. Ferrari recorded a turnover of €2.3 billion, a 5 percent increase over 2012’s numbers.
Of course, Ferrari is a huge brand that is interested in more than just cars. For example, the company will soon be opening up a new Ferrari-themed amusement park in Spain, just one example that they have their hand in multiple markets.
Now, on to Lamborghini. Unveiled in a March 11 press release, Lamborghini also had a great business year in 2013. Instead of decreasing the number of cars delivered, as Ferrari did, Lamborghini saw a 1.7 percent increase, at 2,121 cars delivered. With a lower amount of cars delivered, Lamborghini saw a smaller turnover at €508 million, but this was an 8 percent increase from 2012’s turnover.
While Lamborghini’s numbers may be substantially lower than Ferrari’s, it is understandable. They have been a more exclusive brand, a fact made obvious by the company only delivering 30 percent of the cars that Ferrari did, and they do not have their hand in as many markets as Ferrari.
So, there you have it. As Ferrari is seeing an increase in turnover while decreasing their deliveries, Lamborghini is seeing an increase in turnover by sticking to their their long-standing plan. Which company do you prefer? Leave your thoughts in the comments below.
AUTOMOBILI LAMBORGHINI SETS TURNOVER RECORD AT 508 MILLION EUROS
• Total turnover increased from 469 to 508 million euros
• Worldwide deliveries up from 2,083 to 2,121 cars
• Continuing profitability despite ongoing high investments in R&D and factory premises
• More than 20% of total turnover invested in research and development
• All-time high in V12 sales with a record for the Lamborghini Aventador (1,001 deliveries)
• All new Lamborghini Huracán LP 610-4 receives strong market response
Sant’Agata Bolognese, 11.03.2014 – In the Fiscal Year 2013 (31.12.2013), Automobili Lamborghini S.p.A. improved its key financial figures once more and marked another successful step in its brand history of more than 50 years.
With worldwide deliveries to customers increasing from 2,083 to 2,121 units, the Italian super sports car manufacturer improved its sales for the third consecutive year. These sales figures are outperforming the market trends in the super sports car segment.
The turnover shows a solid growth by 8 % from 469 million euros to 508 million euros. This overproportional increase compared to deliveries is due to an improved model mix; in 2013, 1,001 units of the top model, the V12 powered Lamborghini Aventador LP 700-4 were sold. This is a record for V12 powered Lamborghini models and represents a 9% increase from 922 units sold in 2012. Two and a half years after its market introduction the order bank for both Coupé and Roadster still covers the next 12 months’ production. Overall, 2013 was another positive year in terms of profitability.
In its final year of production, the evergreen Lamborghini Gallardo recorded remarkably stable deliveries of 1,120 units following 2012 when 1,161 Gallardo were sold. With 14,022 units sold over its entire lifecycle, this makes the Gallardo the bestselling Lamborghini of all time to date.
“In the year of our 50th anniversary, Lamborghini has delivered a very satisfying performance, confirming the strength of our product and commercial strategy. Today the company is driving towards the future from a very solid economic base. With our very attractive and new model mix, ongoing high investments of more than 20% of our total turnover into R&D as well as continuous investments into factory premises and the recovery of the markets we anticipate a new phase of solid global growth into new dimensions in the short and long term” said Stephan Winkelmann, President and CEO of Automobili Lamborghini S.p.A.
Lamborghini is a global brand, and sales distribution has been well balanced among the three regions: EMEA (Europe, Middle East, Africa) 34%, America 36% and Asia Pacific 30%.This enables the company to respond flexibly to fluctuations in single markets should they occur.
In 2013, the company continued its path of sustainable development: enlarging its facilities and hiring 100 highly qualified professionals in Sant’Agata Bolognese to address both production demand and new projects, with 1,029 employees at the end of the year. As for human resources and ethical commitment Lamborghini has just been awarded two important prizes: the prestigious accolade “Top Employers Italia 2014”, the first Italian car producer to be selected for this award, and the “Ethical Company” award.
The successor of the Gallardo, the new Lamborghini Huracán LP 610-4, made its global debut at the Geneva Motor Show 2014 and is currently receiving overwhelming reactions from markets and customers all over the world. This is also mirrored in the positive media coverage of the new car emanating from the show. Even before the official launch of the Huracán LP 610-4, Lamborghini registered more than 1,000 orders for the highly innovative new super sports car designed to set a new benchmark in its segment.
2013 RESULTS: RECORD PROFITS, REVENUES AND NET FINANCIAL POSITION WITH FEWER CARS
REVENUES: 2.3 BILLION EURO (+ 5%)
TRADING PROFIT: 363.5 MILLION EURO (+ 8.3%)
NET PROFIT: 246 MILLION EURO (+5.4%)
INDUSTRIAL NET CASH POSITION: 1.36 BILLION EURO, THE BEST EVER
HOMOLOGATED CARS DELIVERED TO DEALERSHIPS: 6,922 (-5.4%)
RECORD DELIVERIES TO US AND UK, GOOD PERFORMANCE IN CHINA AND JAPAN RECORD RESULTS FOR BRAND-RELATED ACTIVITIES WITH REVENUES UP TO 54 MILLION EUROS (+3,6%)
BRAND FINANCE CONFIRMS FERRARI REMAINS WORLD’S MOST POWERFUL BRAND
Maranello, 18th February 2014 – Another extraordinary year for Ferrari. After 2012, its best ever year, the company decided to reduce the number of cars sold to maintain a high level of exclusivity and increasing their value over the time, improving results. The concept worked: there were reduced sales in 2013, but record turnover, profits and finances. This fact was highlighted during the meeting of the Ferrari Board of Directors held today in Maranello under the chairmanship of Luca di Montezemolo to examine the end-of-year financial results. While the number of homologated cars delivered to the network dropped to 6,922 cars (-5.4 per cent) in 2013, revenues rose by 5 per cent, eventually reaching an unprecedented 2.3 billion Euro.
End-of-year trading profits reached a record 363.5 million euro (+8.3 per cent). Ferrari also delivered net profits in excess of 246 million euro (+5.4 per cent). RoS (Return on Sales) leapt to 15.6 per cent, on a par with the very bestperforming companies in the luxury sector. The finishing touch to this very positive scenario comes from the significant investments made by Ferrari over the last 12 months, which, including Research and Development, reached an overall figure of 337 million euro (up from 324 million in 2012), almost 15 per cent of revenues. These investments were completely self-financed thanks in great part to the fact that the company’s excellent cash flow has been on the increase for some time now, jumping again in 2013 and resulting in a net financial position of 1.36 billion euro, the best ever in Ferrari’s history. “This is a very important result that comes as a direct consequence of the huge effort made by everyone. We wanted to maintain a high level of exclusivity, designing amazing products such as the LaFerrari, the 458 Speciale and the just launched California T, the result of significant investment in product and technological innovation.” Said President Luca di Montezemolo. “ We have also taken important strategic decisions relating to Brand which will make an ever increasing contribution to the success of the company. A great source of satisfaction to us all is that we have been named the world’s Most Powerful Brand once again: confirmation we have succeeded in enhancing the value of this incredible brand.” Today, 100 per cent of the cars are personalised, with the Tailor Made programme gaining in strength. The Classic Department is constantly increasing its activity and profitability.
The strategy regarding deliveries to the dealership network announced in the course of the year involved a planned overall reduction in volumes, but paying attention to those markets experiencing very strong demand to avoid excessively long waiting lists. One example of this is the USA where there were a record 2,035 deliveries, an increase of 9 per cent on the previous year. The UK market grew slightly and, with 677 homologated cars delivered to the network set a new record and became Europe’s leading market, overtaking Germany, where deliveries stood at 652, a drop of around 100 over the previous year. Staying in Europe, sales in Italy were down once again, confirming the trend over recent years. Italy has become a marginal market for the luxury car sector: with 205 orders it now represents less than 3 per cent of Ferrari’s global sales. In Greater China (People’s Republic of China, Hong Kong and Taiwan) sales to end clients were good, standing at 700, allowing it to retain its position as the second largest market worldwide. Deliveries to the dealership network were down by around a quarter.
However, this was a by-product not of the market situation but Ferrari’s decision to contain stock numbers. The positive trend continues in the Middle East and Africa with an increase of 8 per cent bringing to 599 the number of homologated cars delivered to the network. In the Far East, Japan performed exceptionally well once again in 2013, ending the year on 380 cars, a leap of over 20 per cent. Brand-related businesses (Retail, Licensing and E-commerce) also yielded very good results and from this year onwards will be managed by a separate company, 100 per cent owned by Ferrari and based in Maranello. Overall, operating margin in that area was up by 3.6 per cent to 54 million euro. Direct retail activities grew by 19.3 per cent on a like-for-like basis, and by 30 per cent as a result of new openings. Part of this good performance, of course, was because of the new in-store décor concept, which will be extended to upcoming projects, and to the launch of new categories of merchandise. Licensing maintains its positive impetus too, thanks to new licencing deals and the brilliant performance of our main and strategic partners, such as Puma, Hublot, Movado and Microsoft. With regard to e-commerce, growth targets set were met, recording revenues in excess of 8.4 million euros in 2013. Ferrari also enjoys an excellent online and social network presence. The official Ferrari website attracted over 40 million visitors while the brand is one of the leading lights of the global social media scene with 12.5 million fans on Facebook, up 25 per cent from 2012. On the Formula 1 sponsorship front, Ferrari signed two major deals, one with leading logistics expert, UPS and the second with eyewear company Oakley.
Aside from its logo appearing on the Scuderia drivers’ helmets, the latter will also develop a new range of eyewear. Several sponsorship contracts were renewed in 2013, most specifically with Weichai Power, which is part of the Weichai Group, one of China’s leading industrial corporations. In the meantime, leading London-based brand valuation experts, Brand Finance, have named Ferrari the world’s Most Powerful Brand for the second consecutive year, awarding it an AAA+ rating that puts it ahead of highlyrespected and established multinational consumer companies. The brand rating not only takes into account financial metrics, such as average revenue per customer and investment, but also a complex array of other parameters, including brand affection and loyalty, client management and human resources. Lastly, it also gives us great pleasure to announce that today, on the anniversary of the birth of Enzo Ferrari, the company embraces a new challenge by taking over the management of the Museo Casa Natale Enzo Ferrari in Modena. Located in the heart of the city, the museum will complement the activities of the Ferrari Museum in Maranello which attracted a record 320,000 visitors in 2013, making it one of Italy’s most popular museums.
(Source: Lamborghini, Ferrari)