The rich get richer............
Life in the Fast Lane: Ferrari Sales Surge in U.S.
By Daniel Gross
There's mass luxury, like, say Starbucks. There's affordable luxury, like the occasional trip to Saks or Neiman Marcus. And then there's unaffordable luxury, like Ferrari, the Italian car brand whose entry-level vehicles start at around $190,000.
Amid a generally blah spring for car sales, Ferrari just turned its best half year in history, with revenues up nearly 20 percent from the year before. Worldwide, it delivered 11.8 percent more cars in the first half of 2011 than it did in the first half of 2010. And the U.S., its largest market, is booming. Sales in North and South America (with the U.S. accounting for the overwhelming majority of sales) were up 23.9 percent in the first half, to 939.
The numbers are impressive given the many headwinds to Ferrari sales. Rising uncertainty in the economy and the weak dollar, which makes Italian imports more expensive, would be expected to put a crimp in sales. You'd also think that the new normal of careful purchasing and concerns about flaunting wealth in an era of 9 percent unemployment would hamper sales.
To find out the secret to Ferrari's success, I trekked to the company's showroom at 55th St. and Park Avenue in midtown Manhattan. Watch my visit here:
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finance.yahoo.com |
