CHRIS HARRIS

This issue’s explosion of new metal from Maranello has put Chris in a contemplative mood

Ferrari is the most enigmatic carmaker of them all. For 75 years it has been loved, reviled, adored and despised. But the new Ferrari era, post-IPO, is proving to be fascinating. For the majority of its existence, the Ferrari road car company existed to generate revenue to support the famous racing cars. Latterly, it existed to support the bottom line of whatever form the Fiat motor company took that year. But, now, it exists to generate profit for its shareholders. And that is a tricky place for a brand that prides itself on being both mercurial and individual.

Ever since Luca di Montezemolo took over the company in the Nineties, the core Ferrari paradox has been how to expand the reach and profitability of the brand without compromising its specialness. And it has to be said di Montezemolo largely did a fantastic job: he snagged Michael Schumacher and dominated F1 for years, and transformed the road car business from the purveyors of overpriced shite into the maker of the best sports and supercars on the planet. The only question mark over his reign was the appearance of the famous prancing horse on stuff other than motor cars. Ferrari entered the world of merchandise, and we were exposed to crap leisurewear and tasteless watches. It made some cash, but undoubtedly cheapened the brand.

The new Ferrari needs to make buckets of cash. And the way it is doing it makes sense, but does leave you wondering how far the brand can be pushed before it comes a cropper. The modern car über-brand business is cut-throat, but strategically simple: launch an SUV that doesn’t offend the hard core too much, remain at the peak of technical innovation and, crucially, push sales volumes as high as you dare alongside increasing retail prices.

And, boy, is Ferrari pushing it. The new Monza costs £1.6m, and 499 will be built. That’s the most expensive, not-verylimited-edition car in history. Total revenue will be handsome, and the extent of the engineering required to turn an 812 into a Monza appears to be a chainsaw for the roof and RuPaul to design you a crash helmet. Good business if you can get it.

And Ferrari does need to milk these projects because the greedy shareholders will be demanding cash. R&D costs for any car company are terrifying. Legislation has rewritten what a future car should be – to understand what is being asked of carmakers, imagine if Coca Cola was told that it could carry on selling its product, but it must no longer be dark brown, contain anything that might hurt teeth or tummy, and it could no longer be served in a can or plastic bottle. And the deadline is 18 months.

The new Ferrari is well placed to navigate all these problems, but I think the volume conundrum is the most dangerous. The Ferrari brand is unlike any other, because it generates the strongest emotional ties, but also because it enjoys true bestresidual values. Your cash is safe in a Ferrari. But the only bond stronger than a rich man and his Ferrari is the bond between market forces and depreciation. There are currently too many expensive supercars being built; at some point the music will stop. When it does, I’m not sure I’d want £1.6m in a Monza, knowing that 498 other people might be as desperate to sell theirs as I was to sell mine.

I wonder what the di Montezemolo strategy would have been for this Ferrari era? I suspect it would have been less greedy and more strategic. Sadly, we’ll never know.

“THE PARADOX IS HOW TO EXPAND REACH WITHOUT COMPROMISING SPECIALNESS”