History of Ferrari

Company History:

Ferrari SpA designs and manufactures sports cars that are synonymous with speed and performance. Ferrari sports cars are among the most prestigious cars in the world, Porsche, Maserati, Alfa Romeo, Jaguar, Lamborghini. Ferrari's name is still revered on the international circuit, and many experts see as a Ferrari GTO sports car ever made the most exotic. Ferrari GTO only 35 were built, and some of them were sold as collector's items over $ 10 million. About 3800 Ferrari are sold each year at prices starting at $ 120 000 each. Ferrari SpA, which has been associated with Fiat SpA since 1969, also owns the Maserati brand. About 20 percent of Ferrari and Maserati sold in North America, with the second largest market is Germany, about 18 percent.

Age 20: Enzo Ferrari test driver and racer

The founder, Enzo Ferrari was born in 1898 in Modena, Italy, in the lower middle class family. Without formal training, was given the task of shoeing horses for the Italian army during World War I. After the war, he traveled to Turin and has sought work in the Fiat, already one of the most important car manufacturers in Europe. Fired unceremoniously Ferrari Fiat nursed a grudge against the ambition of driving age. They decided to enter the automotive industry, Ferrari began to frequent the bars and cafes around Turin, where the famous race car drivers to buy their entertainment. In one of these bars, Ferrari, Ugo Sivocci satisfied, the test driver for the factory new car called the National Mechanical Engineering (CMN). Sivocci Ferrari hired as his assistant and a young man competed in his first race in October 1919.

CMN Ferrari will not be very long, and soon became the Alfa Romeo, which is located on the outskirts of Milan Portello. In 1909, Cavaliere Ugo Stella, the Alpha has a line of cars, and with the support track car. Ferrari had been hired by Alfa Romeo as a pilot test and also has been contracted by the company to sell cars. During the early 1920's, Ferrari crossed the Italian roads between Milan and Turin, sell car, buy parts, providing new cars for wealthy clients, spying on the Fiat and Alfa racing.

In recent years, the Ferrari driver was on his laurels as racing cars. In 1923 he won the Mile Launched in Geneva, in Polesine Robigo Circuit, and the annual competition of Ravenna. In 1924 he won the Pescara, running on the Adriatic coast. Death in 1925, popular, Antonio Ascari, Alfa Romeo driver premier, has led the company to cancel all racing competition respect for the worker fell. Disappointed by the fact that his own racing career was cut short, the Ferrari is controlled by his energy and his focus was on developing a distributor of Alfa Romeo. By the end of 1925, Ferrari had been expanded to Jorma Ollila largest dealer and service center. In 1927, he was at the wheel of a race car again, and won the race at Modena, and the Alexandria Circuit of years. In 1928 the Ferrari to repeat as champion in both races.

1929 With World War II: the early years of the Ferrari Company

How lucky Alfa Romeo fell in late 1920 and early 1930, was taken over by the Institute for Industrial Reconstruction (IRI), the organization of government was founded to help companies in financial difficulties. As a result of this, the Alfa Romeo pulled directly from the racing circuit input, not only an international Grand Prix. Ferrari, however, was not to be denied, and, parlaying his contacts with the United States, Shell Oil, the German Bosch ignition system, and its Italian at the Pirelli tires, he founded the Società Anonima Scuderia Ferrari, a car stable and Racing and drivers dedicated to the promotion of sport in racing in 1929. Ferrari teammates has promised investors that it was not just buying and racing cars, but also to build a high performance car for enthusiasts of sports cars in the future. Alfa Romeo Scuderia contract to operate its new representative in some races.

With the rise of the Fascist Party, led by Benito Mussolini in 1930, Ferrari has decided to join the Fascist Party. His collaboration with the fascists aligned with its ambition to lead the program of Alfa Romeo race, which was obviously operating under the direction of the IRI government-controlled. Ferrari's ambitions were frustrated, but with the arrival of Wifredo Ricart, a Spanish engineer hired by IRI to relaunch Alfa Romeo and return it to the winner's circle on the race track. Ferrari Ricart personal reluctance was obvious from the start, but increased dramatically when he discovered that Ricart was standing behind the decision to Alfa Romeo to buy 80 percent of the Scuderia Ferrari and the return of the administration of the program race headquarters Portello.

With bitterness and resentment deteriorate during each meeting between the two men, and after a particularly unpleasant exchange, where Ricart be compared to a genius, Ferrari decided it was best to end his association with the Spanish engineering and Alfa Romeo.

Ferrari farewell agreement with Alfa Romeo stated he could not use the name of Scuderia Ferrari to race in four years. For this he received a generous severance package and he wasted no time in establishing Auto Avio Costruzione, a custom machine shop, which originally manufactured aircraft engine light aircraft in 1940 . The famous Ferrari prancing horse symbol occurred during this period on the company letterhead and marketing brochures. With the entry of Italy into World War II in 1940, the Ferrari factory will soon produce tools for the armies of the Axis, including advanced hydraulic crushers. Although his company has benefited from its collaboration with the Axis powers, Ferrari impatient because the war interrupted the international motorsport.

Entry into the post-war car design and production

After the war, the Ferrari was approached by a group of car enthusiasts who convinced the manufacture of 125, a new car for the race track. In March 1947, the prototype 125 had its initial test drive, and later in the year entered and won the Circuito del Valentino in Turin before the rich and elite of Italian society. Shortly after the race, dignitaries, as the Count and Count Bruno Sterz Soave Besana in Milan and the Russian Prince Igor Troubetzkoy (husband of Barbara Hutton, Woolworth heiress) is called at the door of their car buying Ferrari Modena . In December, Enzo Ferrari was making a limited number of high-performance sports cars. First car Ferrari 166 Spider as the Corsa type, were three vehicles. That could be used as sports cars on the road, such as sports cars competing in races like the Mille Miglia, and tickets to the events of the Formula Two race (with fenders and other equipment) removed.

By the summer of 1948, the Ferrari automobile engineers had completed work on nonracing car. This is the Gran Turismo car could be done for windows, heaters, top, and leather upholstery. Each car body must be done by hand with the traditional craft stylish Italian design and craftsmanship and delivered to distributors in lots of less than ten cars at a time. When the car was finally delivered, the customer would have the final decision on the paint color, upholstery, and an outer edge. Until Ferrari Fiat took over in 1969, the company does all the cars produced by this method, and then there are two machines were identical.

In the early 1950s, the Ferrari cars were commissioned by the international elite, including the Aga Khan, King Leopold of Belgium, the Shah of Iran, Juan Peron, Crown Prince Faisal of Saudi Arabia and members of both Dulles and Du Pont families. The dealer franchises listed company in London, Rome, Zurich, Algiers, Casablanca, Melbourne, Florence, Brussels, Montevideo, Sao Paulo, Paris and New York. Although the Ferrari drivers are finicky and often overheated, the combination of their malice with their brilliant design of the body and created a unique mystique. Alfa Romeo, Maserati and Jaguar seemed to pale in comparison.

Despite the growing success of its business, the Ferrari has remained obsessed with race, with most of the money earned by selling sports cars in Europe and America to finance the annual Grand Prix Formula One racing's fortunes sponsor car races have been volatile, however: in 1952, the cars designed and built by Ferrari won 16 of the 17 races he had entered the company in 1957, Ferrari won just a few of the many races on the international circuit . However, the late Enzo Ferrari 1950 became a national auto racing, a kind of quasi-official representative of the Italian nation in every race. Ferrari began to believe the press reports about their responsibility in carrying the banner of international competition in Italy and has spent more time and his race team. Although most Italians celebrated Christmas and Easter Sunday, the Ferrari has been doing business to improve their chances of winning the next race.

In 1960, the company was restructured as a public company Factories Exercise and Racing Cars - SpA SEFAC About 40 percent of all the Ferrari cars were exported to North America, primarily in the U.S. market. The cars were reduced and the detuned version of the company's racers, and although the money from the sale of these cars for wealthy Americans can continue his dream Ferrari racing, Ferrari was indifferent to almost every aspect of the manufacturing process.

Ferrari is known in the industry wanted a big company to take over the administration and management of your plants so you can spend all your energy for the race, and in the 1960's, Ford Motor Company has made overtures to the Italian . In operations in the Ferrari name, trademark, patent, technical developments and 90 percent of the shares of the company, Ford has agreed to buy the sports car manufacturer for $ 18 million. The acquisition of Ferrari Ford developed a national issue, with the leading Italian opposition press to accept as a matter of national honor. Negotiations proceeded smoothly until the Ferrari insisted on maintaining complete control over the operation of the race. Ford executives declined and could not accept a completely independent operation, working within the organization. The agreement between Ford and Ferrari, who looked so promising, was canceled suddenly. In 1965, in the meantime, the company changed its name to Ferrari SpA

Automobili e Corse Esercizio Fabbriche.

Manufacturers of sports cars such as Porsche, Jaguar, and a brand new Ferrari, Lamborghini has begun to chip away at the market in both Europe and the United States, and the Grand Master of the continuous production of cars in their ignorance of society at the end he got his Toll: models and 330GTs, 275GTBs, and other models were quite ugly, and the production was poor. Bodies were prone to rust easily, and the parties were in a bad economy, or to work. U.S. distributors soon discovered that the Ferrari sports car at the end of 1960 it was almost impossible to sell. Between 1968 and 1969, car sales dropped to 729-619 units. Lack of funds to expand and compete with Ferrari's adherence to many races at once instead of focusing its limited resources, such as Formula One competition, the company began to suffer financially.

Late 1960 to late 1980: Between Fiat Enzo output

On June 21, 1969, Fiat bought Ferrari for $ 11 million. Under the terms of the agreement, Fiat won 50 percent of the stock of Ferrari and would control the operation of car, while Ferrari has retained the remaining 50 per cent and total control of the operations of motor sport. Fiat immediately took over the management of millions of everyday design, manufacture, marketing and sales of Ferrari cars, and has invested to modernize its plant and expand production. In 1970, under the new leadership had Ferrari Fiat car production rose to more than 1,000, and by the end of the decade, production had reached 2000. Fiat has doubled the size of the Ferrari factory and pledged to make cars Ferrari to focus on its international marketing.

During the years 1970 and 1980, reached the gathering of Ferrari cars by car enthusiasts the intensity of a quasi-religious experience. Americans and Europeans both amounts paid huge money for former Ferrari racing machines, and French, even converted his entire estate of 375 acres outside Paris in a shrine to Ferrari. Enzo Ferrari was not the least bit interested in the deification of its cars, and more often than not, show contempt for those who have purchased Ferrari cars as a symbol of social status. After selling the operation of passenger Fiat, for nearly two decades, the old man has been immersed in the fortunes of his stable. When Enzo Ferrari died August 15, 1988, the Italian population was in mourning. The last of the giants of the car died.

Shortly after his death, the management of Fiat has announced that the Ferrari factory to increase production and that the last remnants of the hand-car production would be eliminated. Fiat increased its stake in Ferrari in bankruptcy for nearly 90 percent in 1988 (Enzo's son Piero Ferrari kept the other ten percent), injecting some much-needed capital, and the following year, the company named Ferrari SpA

1990: revival of a legend

The early 1990s were particularly difficult year for the global automotive industry, the recession afflicting U.S. and European economies. Ferrari felt the effects as well, with 2289 sales jump into cars in 1993, half the number sold in 1980. Fiat hired Luca Cordero di Montezemolo as President and CEO of Ferrari in 1992. Di Montezemolo, a marketing as Relay with a time prior to Fiat and Ferrari (he managed the Ferrari Formula One Racing Team in 1970) and Cinzano liquor company, was then responsible for organizing the World Cup Italy in 1990. Championship was a huge financial success and public relations, with much credit going to di Montezemolo.

Di Montezemolo rapidly reformed in almost every area of ​​the company's operations. He spent $ 80 million modernized factories. Production processes and design engineers and designers were hired Fiat. Labour has won concessions that have improved the productivity of the mill. The company's product portfolio is completely turned upside down. At the beginning of the decade the company has made only two models, "has two seats, very uncomfortable, very extreme," according to di Montezemolo. In the mid-1990, nine new models will replace two obsolete. Customers Ferrari has taken up more widely to choose from, including the lower-end Ferrari 355, which began in the U.S. $ 160.000 and has sold particularly well. 456M bucked tradition in the back seat. The second model was made roomier by moving the engine back to front, violates the second Ferrari tradition.

Customers can also now choose between a dozen or more colors, rather than being forced to accept the standard red Ferrari. Di Montezemolo Ferrari transformation was clearly paid off in 1997 when the company recorded a profit before tax of U.S. $ 22 million in record sales of $ 594 million, a vast improvement over the $ 2 million in earnings before taxes and the U.S. $ 399 million in revenue in 1995.

As a society recovering celebrated 50 years of car manufacturing in 1997, Ferrari is a new challenge in 1997 when its parent company, Fiat sold a 50 per cent in Maserati SpA, another Italian manufacturer troubled sports car, Ferrari , giving management control of the last old one. Fiat hopes that di Montezemolo could fill another reversal, another reason for the move was to give access to the design of Ferrari Maserati, which included four-door models - Ferrari that two-door cars. Maserati had a turbulent history remarkable for the number of its owners and the few profitable years. Fiat had bought 49 percent of Maserati in 1989 and took full control in 1993.

Under the direction of Ferrari, Maserati had been thoroughly revised, $ 120 million invested in late 1990 to try to relaunch the brand. Maserati factory in Modena was restored, all workers had an assembly line or replaced or retrained, and a new model for 3200 GT coupe, introduced in November 1998, has received critical acclaim. Maserati sales exceeded 1500 units in 1999, triple the previous year. In November 1999, Ferrari has acquired 50 percent of Maserati in stock, which had already gained full ownership.

As befits a marketing expert, Di Montezemolo has also worked to leverage the prestige of the Ferrari brand. He developed a line of band's name and logo of Ferrari was allowed to other companies, then sold the Ferrari brand products. Among the products licensed in 1990 Ferrari were (in partnership with Girard-Perregaux), perfumes (Satinine) Clothing (TSS & P), video games (Electronic Arts and Sega), and models of cars and toys (Mattel). In 1999, Ferrari has created a subsidiary called Ferrari Idea SA, based in Lugano, Switzerland, and has assumed responsibility for development and maintenance of these associations licenses. Approximately ten percent of the profits attributable to the idea of ​​Ferrari Ferrari in 1999.

Ferrari had its sixth consecutive year of sales growth in 1999 with increased revenues by 22.8 percent over 1998, reaching U.S. $ 760.8 million. During the year ended company has a successful launch of a new model, 360 Modena, which replaced the F355 - the best selling Ferrari of all time. Some good news from the sports world where the Ferrari team won the 1999 Formula One constructors' championship for the first time since 1983, but Eddie Irvine narrowly lost the drivers championship in the last race of the year (the last person Ferrari Championship in 1979). Ferrari nearly 3,800 were sold in 1999, approaching the mark on its target of 4000. With the success found the Ferrari under pressure to increase production. The company felt that this could undermine the brand. Therefore, Ferrari's strategy for the 21st century was beginning to Maserati to become the business volume of fire.

The production of 2000 vehicles were projected to increase from 10,000 per year in 2005. A key to this growth was planned reintroduction of Maserati in the U.S. market with a new two-seat convertible called the Spyder sentenced to debut in 2001. The following year, another new model, a four-door executive car that was planned for introduction. To meet these production targets, options for the new Assembly considered, including the collection of cars outside Italy, perhaps in the United States, the largest potential market for Maserati. Meanwhile followed spend Ferrari license agreements with other risk nonautomotive. In April 2000, the company announced it had entered into alliances with Marsh & McLennan Companies, a U.S. insurance and consulting firm, to provide insurance to buyers of new cars and Fidis, the financial arm of Fiat to launch retail financial services. As with its plans for the Maserati brand, these initiatives are seen as alternatives to soaring production car Ferrari in order to increase sales and profits.

Still, the Ferrari was a prisoner in his public image - has been at the center of the icon, the nation's hungry for respect for the international community. Ferrari realized that the huge amount of money necessary for the company to survive, so he turned to Fiat for help. Since Ferrari was carrying both permanent aversion for Fiat, it was a touch ironic.