Ferrari sales hit the skids at home
Sales at the luxury automaker slump in Italy as the eurozone crisis takes a toll.
The Ferrari, the ultimate status symbol, is suffering in its home country, with sales in Italy slumping by 56% last year.
Only 248 of the pricey cars -- which can command over $300,000 -- sold in Italy last year, according to a report in the Guardian. Maserati, another luxury automaker, also suffered, with sales plunging 72% to only 115 units.
Italy may have been the exception for Ferrari, with the country hurting from the eurozone crisis and higher taxes for auto purchases, according to the report.
"Once again, the exception is Italy where we have witnessed a drop partly due to the economic crisis, but also to a hostile environment for luxury goods which have long been, and continue to be, an important resource for the country," said Ferrari president Luca di Montezemolo.
And it's not only luxury car sales that are suffering: Italy's overall auto sales slipped 19.9% in 2012, marking the industry's worst year since 1979.
At the heart of the problem may be Italy's bigger economic issues: Italians have seen their standard of living fall, while unemployment for young people is over 36%, according to Reuters. The Italian economy has shrunk for five consecutive quarters, and, for more than a decade, has served as the euro zone's most sluggish economy.
While car sales are lagging in Italy, the U.S. auto industry witnessed its best sales streak since 1973. Auto sales may have jumped about 9.8% in December, marking three straight years of growth of at least 10%.
Demand is also growing for luxury cars from U.S. buyers. Many luxury models witnessed record sales in 2012, with the BMW Group selling the most high-end cars for a second year in a row, according to MotorAuthority.com.
BMW's sales jumped 13.5% last year to 281,460 auto sales, while Mercedes-Benz cars saw a 15.4% rise in demand. Ferrari, which didn't make the list of the top 10 luxury makers in 2012, typically sells only several thousand cars per year, with about 1,900 sold to U.S. drivers in 2011, according to Fiat's annual report.
More on Money Now
The first thing people pass on are the extra luxuries in a failing system. I love Ferrari as they are one of the few auto makers that has and shows their racing heritage in the cars they produce. Too bad that they are hurting too but when the segment you cater to is an exclusive club and it doesn't appear to be a growing club as the people with that kind of money tend to consolidate and maintain there power rather than allow someone else the opportunity to get there too.
Maybe there is a glut of these cars on the Market(or in Garages) now...??
How many Ferraris can you drive at one time.....?
And the last Maserati we looked at was a pretty cheap looking car...
But on the Plus-side, only "one G-kid" can ride with you at a time....
But Grandmas don't like that...
I like Lambos...
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
More than 70 percent of the Class of 2012 took out loans. Oh, and they're seeing high unemployment, too.
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
- Should the US scrap the debt ceiling?
- Will new mortgage rules mean fewer lenders?
- Why GM, Chrysler are riding high
- Survey: Dashboard lights fail to send right message
- Can you opt out of Medicare?
[BRIEFING.COM] The drive for five continued today and it was a success. For the fifth straight session, the S&P 500 ended lower. Like the previous four sessions, though, the losses were fairly modest in scope. The S&P 500 declined 0.4%, bringing its total loss for the five sessions to 22 points or 1.2%. All in all, that still qualifies as a pretty tame slide considering the S&P 500 had risen 150 points, or 9.1%, over the previous eight weeks.
Today's ... More
More Market News
The retailer labels the character's fake memoir as non-fiction. This comes weeks after it categorized the the Bible as fiction.