Ferrari’s flashy new NZ digs
The Prancing Horse now lives in a new state-of-the-art showroom in Auckland, writes David Linklater.
There’s a myth we Kiwis like to perpetuate that New Zealand is No 1 in the world in terms of percapita Ferrari ownership. I bring bad news.
‘‘New Zealand is one of the highest,’’ says Dieter Knechtel, chief executive of Ferrari Far East and Middle East.
‘‘We are not far away and there are some calculations we could do – we haven’t done them for a while. We know about most cars, but some get lost. They move from one country to another and it’s difficult to trace them, until they pop up in a workshop.
‘‘But yes, in New Zealand there are 500 or so cars and that’s a nice number. But you are in competition with Singapore, Hong Kong, Monaco and a few other places.’’
So New Zealand still delivers for Ferrari. Enough for Auckland dealership Continental Car Services (CCS) to invest in a new state-of-the-art showroom at the head of the city’s premium retail (automotive and otherwise) strip.
The new 450 square-metre showroom is only the sixth in the world to be built to new factory guidelines. How much? It’s like buying a Ferrari: there’s no firm answer until you’re finished and then it’s probably not a number you share.
But the sofa in the customer lounge, finished in the same leather as the seats in a new Ferrari, cost $350,000. That gives you some context.
The showroom includes the facility for customers to configure their cars with the factory. Working with a specialist Ferrari team member, clients can select every last detail from their choice of chair fabric to wheels, paint colour and steering wheel.
Ferrari doesn’t build a car until it’s sold and there are typically waiting lists of a year or more. Does a brand with such a strong following need a flash showroom in such a prominent position?
Yes, says Herbert Appleroth, chief executive of Ferrari Australasia: ‘‘Some of our clients here are amongst the most respected collectors in the world, with many of our special limited editions making their way here.
‘‘[But] we have already noted that 50 per cent of our New Zealand clients are new to the Ferrari brand. We expect that this new state of the art facility will only continue to strengthen Ferrari’s position with our New Zealand customers.’’
The new showroom is key to Ferrari’s Kiwi expansion, but there’s also an upgraded service facility nearby in Ellerslie and a new service centre is planned for Christchurch in 2017.
CCS remains the exclusive Ferrari dealer for New Zealand.
Knechtel says the brand has remained strong because of its heritage and retained value. It doesn’t hurt that there continues to be an increase in high-net-worth individuals all over the world.
‘‘Our business model operates in every situation. We just have to find a way to connect with those people. [Sales] are always here and there and Europe is not in very good shape at the moment, but that trend is reversing again. The general trend is sustainability, protection of value, protection of customers ... and no surprises.’’
Knechtel acknowledges waiting lists, although desirable to keep the brand exclusive, can be an
‘Some of our clients here are amongst the most respected collectors in the world, with many of our special limited editions making their way here.’ Herbert Appleroth Ferrari Australasia chief executive
issue for customers who are new to the brand: ‘‘In New Zealand we are happy with the wait time, although of course with a new car that list can shoot up.
‘‘We need to offer solutions for the customer, because we appreciate the patience and understanding of how we do things. In many markets we have structures that allow a customer to still drive a Ferrari [during the wait time].
‘‘We have a programme in Japan that’s working very well. Because we can anticipate the future value of a car, that gives us many options with financial services to offer a monthly rate for a customer who still wants to drive a Ferrari while they are waiting.’’
Parallel imports are a thorn in the side of the luxury-car industry in New Zealand. But less so for Ferrari, says Knechtel: ‘‘We manage it pretty well. We have a good overview of what’s going on and the size of our business allows that kind of transparency.
‘‘It’s in the nature of automotive business that cars are shifted around from time to time. If there are a few such cases, that’s OK. At the end of the day, wherever the cars show up they are taken care of.
‘‘If there’s a more systematic structure of somebody pursuing a business opportunity by importing more cars, we see that immediately and take care of it. And of course we watch the exchange rate very carefully. Currently the British pound is of interest.’’
Ferrari celebrates 70 years this year and CCS 50 years (although it didn’t acquire Ferrari until 1973). Expect some special edition cars and a party or two.