Wealthy Aussies helping Ferrari growth

A STRONG economy and the increasing number of wealthy Australians are key reasons behind Ferrari’s continued sales growth Down Under, according to Ferrari Australasia chief executive Herbert Appleroth.

Ferrari sales are tracking ahead of the first nine months of last year by 2.3 per cent – or three units – with 134 units shifted, and the company has already sold out the annual allocation for key new models, well ahead of delivery.

Speaking to journalists at the reveal of the LaFerrari Aperta at Motorclassica last week, Mr Appleroth confirmed that the Italian supercar-maker would break last year’s sales record by the end of this year.

“We have never seen a point in time when it has been this successful,” he said.

“We obviously closely limit the number of cars that come into the marketplace but the market is extremely buoyant.

“I have no problems in telling you it will be another record from Ferrari this year, but again a measured increase, year-on-year growth. Our focus is on the resale values of our client’s cars, and as you all know that is increasing dramatically. There has never been a … moment in time that Ferrari has been as popular as it is now.”

Mr Appleroth said Australia’s strong economy, as well as newly wealthy Australians, have helped ensure consistent growth for the Ferrari business.

“The economy is going very, very well. There are a lot of wealthy people, a lot of new wealth. It is all about the level of confidence. Nothing helps Ferrari sales more than confidence. Obviously, the building industry and real estate has certainly been a great level of improvement for confidence.

“If people see their family home or investment property going up in value, they become confident. That is certainly the way we are feeling now with our brand.

The great thing about the real estate boom, particularly on eastern seaboard, is that a lot of money has been put in the hands of many people.

Left: Ferrari Australasia chief executive Herbert Appleroth

“Before the mining boom, the wealth generation was in the hands of few.

Australia has one of the highest home ownership (rates) in the world as well as investment properties, so there are a lot of people making a lot of money. And I think people like to reward themselves for their hard work and what better way to do that (than) with a Ferrari.”

The steady sales growth is not a result of just one particular model in the line-up, but the entire Ferrari range, according to Mr Appleroth, who confirmed that the F12 Berlinetta-replacing 812 Superfast had sold out.

“It is right across the range. The first true surge was of course the 488 and immediately we had a two- or three-year waiting list. The California T kept the momentum. And of late the 812 Superfast, where we didn’t just sell out our first year’s allocation, we sold out our entire lifecycle before the car even came here,” he said.

“We have never seen that level of enquiry and level of sales anywhere so it is right across the range.”

Mr Appleroth said Australia ranked in the top 10 globally for Ferrari sales and that the standing in the company internationally had led to the Australian arm getting a greater allocation of cars than before.

“We are growing up the ranking of the volume as such around the world so every year we are going one or two places higher and higher. We have been allowed to grow from our factory, obviously the factory is not producing that many more cars each year but we are getting a larger share,” he said.

“Thankfully my superiors have allowed us to get more volume but essentially talking from other markets.”

In 2013, Ferrari took control of the Australian operations from independent distributor European Automotive Imports, which is part of Neville Crichton’s Ateco Group.

Mr Appleroth said that following a refresh to its existing six dealerships in Australia and New Zealand, the company now had its sights on a network expansion.

“We are now looking at new showrooms. I can announce that very soon we will be having a second showroom in Sydney, a second showroom in Melbourne and we are currently evaluating who the partner will be on the Gold Coast,” he said.

“So we will be growing the network from when we started (in 2013) with five showrooms, will now be nine showrooms by the end of next year.”

Mr Appleroth was coy on who the partners would be, but it is likely that existing franchise holders McCarroll’s Automotive Group in Sydney and Zagame Automotive Group in Melbourne will run the new showrooms.