Ferrari’s outlook is way up, Stellantis ain’t half bad either, Russians look to Japan for cars, and ADA-compliant green buses are coming to West Virginia.
Welcome to The Morning Dump, bite-sized stories corralled into a single article for your morning perusal. If your morning coffee’s working a little too well, pull up a throne and have a gander at the best of the rest of yesterday.
Ferrari’s Business Model Can Apparently Withstand Supply Disruptions
In our ongoing evaluation of whether inflation is a long-term marcoeconomic response to numerous intersecting factors or, perhaps, a short-term reaction to those factors exacerbated by large corporations extending their profits I would like to present Exhibit B: Ferrari.
The storied Italian brand has sold out most of its models and raised its expectations for revenue for a second time this year, according to this Bloomberg story. From the same piece:
“We continue to manage an outstanding order book: with the exception of few models, our entire range is sold out,” Chief Executive Officer Benedetto Vigna said in a statement, also noting new “macroeconomic challenges on a global scale.”
The manufacturer follows other luxury brands like Mercedes-Benz AG raising guidance to defy economic gloom with wealthy car buyers less acutely affected by soaring inflation and rising interest rates. To counteract higher input costs from industry-wide supply-chain pressures, Ferrari is raising prices for models like the €215,000 Portofino and €1.6 million Monza in the first quarter of next year.
In its own story “Defying gloom, Ferrari sees strong demand for luxury cars,” Reuters mentions the Italian supercar company’s positive outlook, writing:
The Italian carmaker said orders for its new 390,000 euro ($385,000) Purosangue four-seater had outstripped even its most ambitious expectations. It has also pushed up prices by mid-single digit levels on its existing models to offset the impact of inflation.
We are also very positive for the next year. This is thanks to the order book that we have, that is spanning all the products we have as well as all the regions,” Vigna said.
A double digit growth in shipments helped Ferrari beat expectations in the third quarter, with its adjusted core earnings rising 17% to 435 million euros.
With a 73% increase, the China, Hong Kong and Taiwan region scored the largest shipment growth in the quarter.
It sort of makes sense that Ferrari, unlike other automakers, can survive limited supply because limited supply is the company’s business. Waiting for a Ferrari is part of buying a Ferrari, which is not true for people buying a Honda Accord. Ferrari owners have told me about the months they’ve waited for cars and they weren’t complaining, they were bragging. Cars have become harder/slower to build, so Ferrari raises prices and doesn’t worry about losing customers. And you can bet that when the cars are easier to build, those prices ain’t dropping; but maybe I’m wrong.
Stellantis Isn’t Half Bad Either
Ferrari’s, er, cousins at Stellantis reported a 29% increase in sales in the third quarter as their supply chain improved and deliveries started catching up to demand. They believe their financials will improve along with the sales increases as the business starts to normalize.
This, I thought, was interesting:
That’s from this Automotive News story on the Q3 report, and I think it’s interesting for two reasons:
- If winter doesn’t get terribly cold it seems like supplies in Europe can hold out, and prices have even dropped recently.
- If it’s not one thing it’s another, and the lack of truck drivers just shows how interconnected everything is.
Russians Are Looking To Japan For Used Cars
As if there weren’t enough reasons to despise Russia’s illegal invasion of Ukraine, it sounds like anyone hoping to import a car from Japan is going to have to compete with some desperate Russian citizens.
Imports, which used to account for around a fifth of the market by volume and half by revenue, have not yet fully recovered. New car imports were well below February levels in August, data from Russian analytical agency Autostat showed, but those of used cars more than doubled to 23,117 from 11,055.
The vast majority, 76%, of used cars were imported from Japan, with Belarus distant second with a 5.3% share, the data showed.
Keep your hands off my Cimas!
West Virginia Gets Its First ADA-Compliant EV Bus
We’ve talked before about how electric school buses make a lot of sense and it seems like West Virginia is getting in on the action already. Canadian bus company GreenPower Motor Company is building this, the NanoBEAST, which is a “clean sheet” Class A school bus that’s been delivered to Clay County Schools in South Charleston, WV.
From a company press release:
“GreenPower, along with its partner Constellium, has developed a full monocoque structure that utilizes the proven GreenPower purpose-built EV Star platform,” said GreenPower President Brendan Riley. “The passenger compartment features a flat floor to ensure excellent accessibility for wheelchairs and ensure that there are no seats with compromised foot and legroom.”
Riley also noted the Nano BEAST all-aluminum body is stronger than any other body used for other Type A school buses on the market and the GreenPower design has a higher passenger floor that keeps students out of the typical crash zone.
It’s not the sexiest part of the market, but it’s the most logical. That this is apparently a fresh design is interesting because it looks a lot like a repurposed Sprinter, though most vans in this class look fairly identical.
We got to spend last night with some readers at the Taco Bell Cantina in Las Vegas and it made me wonder: What car most exemplifies the Live Mas lifestyle?
Photos: Ferrari, Stellantis, GPMC, Nissan