Ferrari, undoubtedly the most notorious Italian manufacturer of pristine, powerful supercars announced that they will award their workers with a large bonus – a very large bonus. The €4,000 bonus (roughly $5,700) for those who build and craft the cars has come out of recognition of excellent financial results achieved at the end of the last fiscal year. This is a record cash award for those at the Maranello-based auto firm means that it pays to work at Ferrari.
The large bonus comes even after Ferrari has chosen to sell less cars, capping production at 7,000 to retain their exclusivity. In 2013, the Italian auto manufacturer built and delivered only 6,922 cars – a reduction of 400 units from the previous year. Although Ferrari decreased their production numbers, this did not stop the company from increasing revenue by 5% to €2.3 billion ($3.2 billion), improving their profit margin by 8%. The increase is mainly due to their accessories business with items such as shirts and flashy key chains.
While a near $6,000 bonus may not sound like such a large award those who put together the 458s and 599s, consider the fact that the bonus is equal to near 3 months salary. Moreover, the bonus is part of a three-year plan by Ferrari to continue to award its workers as the company looks to increase revenue even further.
The quality over quantity mentality from Ferrari is something that makes the company special. In an era when other European supercar manufacturers are launching SUVs and hybrid roadsters, it is enjoyable to see that the vision at Ferrari is still considered sacred. Luca di Montezemolo, chairman of Ferrari, stated, “My focus this year and in the years to come is not to grow volume but to increase the exclusivity of Ferrari.” Such an approach to the fashioning and building of nostalgic Italian supercars leads to the protection of residual values of the cars for customers. Even if sales remain static, di Montezemolo expects revenue to grow further.
One of the main factors contributing to the increase of Ferrari’s revenue is their ever-expanding customization program. Including Ferrari’s latest Tailor-Made Program, they have also continued their even more distinct Carrozzeria Scaglietti, One-to-One, and Special Projects divisions.
Furthermore, one of their more popular program is the Ferrari Classiche. As the name speculates, the division works on restoring earlier Ferrari models. The classic division has proved so popular and so successful in years past that Ferrari is considering introducing a second facility in California. This is due to the fact that the U.S. is Ferrari’s largest market and has the biggest percentage of Ferrari’s on the road.
Ferrari is considered one of the top employers in all of Europe. Even though a Ferrari builder’s salary may not be something to write home about, most people would work there if just for a t-shirt and a fancy key chain. Since the company is awarding its workers with an astronomical bonus after a year of making cars with an OCD-level of attention to detail, one can only wonder how much of a better car Ferrari can make.
By: Alex Lemieux