should we believe "LIMITED PRODUCTION" ???

should we believe \"LIMITED PRODUCTION\" ???

i have two questions.

i have heard from an online acquaintance who owns an original GT40 and has contacts inside Ford, that they might build whatever it takes to meet demand.

since i don't believe demand is more than 3,000-ish units in the US, if they primarily sell here they'll be on target to the rumors.

here's question one re: volumes:

has Ford actually said publicly anything about these hard numbers? for sure they've bandied words like "limited production" but have they actually offered up serious numbers themselves - or have they just babbled at the media and they've fashioned these numbers?

and here's question two, a business question:

as a publicly traded company whose ultimate legal responsibility is to its shareholders, if the GT is a profitable vehicle (which it most probably will be) and worldwide demand is for roughly 10,000 vehicles, isn't it fiscially irresponsible to not build those cars? if demand is 5,000 vehicles and they only build 3,500 total, isn't that fiscally irresponsible?

i have to assume that this is why the viper still exists: it was a halo car to begin with, but lo and behold, the damn thing was profitable! clearly its halo effect is much less now, but they still build 'em and people still buy 'em!

for comparison, Ferrari builds more or less to manufacturing capacity. unless they built a new manufacturing line or moved f-cars into the maserati facilities, they're basically "maxed out" as far as annual production is concerned (maybe they could put another 500-1000 cars out if they really tried hard - who knows). but Ferrari isn't public so they don't have to answer to the Italian SEC et. al.

thoughts?

doody.
 
Re: should we believe \"LIMITED PRODUCTION\" ???

Mr Doody,
Ford have stated number that they will build, the fugures are out there. It is also not a question of limited production, but also ensuring that a business case is met so that cars can make money. Due to the way the GT is being made I would assume that the maufacturing chain could only support a limited number built per year; whether it remains over time is another question, which has not been finally answered yet. However J Mays was quoted in a magazine here in the Uk as saying he was eyeing the hiome of the GT for potentially building the Cobra once production has finished, so who knows.

Onto the business question.

How can you determine that demand will be 10,000 units per year? If you look at a lot of high end manufacturers their numbers are not staggering, certainly under 10,000. Also, to create want for a brand is something every manufacturers yearn for.

Onto your final point. You are very much mistaken. Ferrari is owned by Fiat, which GM have a stake in.... As Ferrari operate in NA they will have to comply with SEC rules for their sales etc there. With the advent of the Parmalat scandal, I would forsee the speeding up of such laws in Europe (yes they were already under discussion). Ferrari are also not maxed out, they are trying to grow their market share just like any other manufacturer.

Brett
 
Re: should we believe \"LIMITED PRODUCTION\" ???

Ferrari is not owned by FIAT (auto group). Ferrari is owned by an Italian Bank, Lehmans Bros, members of a FIAT group separate from the auto group and Mr. Ferrari's son. Ferrari is a private co. GM has no involvement or ownership in Ferrari.
IMHO the first year's production of the Ford GT will be 800 units. I also believe that once they see how it goes they will build to demand as C does with the Viper and GM does with the Corvette.
 
Re: should we believe \"LIMITED PRODUCTION\" ???

oh, i have NO data to suggest 10,000 or any other number. i'm talking purely in the abstract.

as a public company responsible to its shareholders, if it can build an in-demand, highly-profitable car, is it fiscally responsible for them to stop building them before demand is satisfied? what does that "get" the company since it's, in theory, in the business of generating return for its shareholders first.

i'm just trying to start an abstract debate - i have no hard data of course beyond what everybody has.

when Porsche started 996TT production they claimed only 2,500 units would be built. once they saw how they were selling, they upped that to over 4,000 units. they totally killed the market, and you can get 996TTs off the lot for not much over invoice (never mind the hit you take when you try to sell your 2001 996TT - i know i walked funny for a few days!).

this is the kind of thing i'm trying to grok. i see no business reason why they would stop production until demand is met. they might not increase the count per year, but like the viper, i don't see any logical reason why they wouldn't "just keep makin' 'em". and i'm further questioning whether terminating production before demand was satisfied would be a corporate liability.

as to Ferrari ownership, the largest shareholder in Ferrari is Fiat as you point out, though it's Fiat Group, a holding company, which owns the Fiat car company as well as a ton of other businesses. Fiat Group owns 56% of Ferrari largely as an investment. Mediobanca, an italian bank owns 34% of Ferrari (purchased from Fiat Group in 2002). Piero Ferrari, Enzo's son, owns the remaining 10%. Fiat Group is traded in the US via ADR shares (NYSE: FIA). Fiat Group's cut of Ferrari S.p.A.'s profits are not a material portion of Fiat Group's business. apparently automobile sales account for less than 10% of Fiat Group's profits, and many shareholders want them to sell Fiat (the car company) et. al. to focus on profitable ventures (insurance, manufacturing, commercial vehicles, energy, etc. etc.). whereas Ford is first and foremost in the car and truck business, and each model's performance is a matter of Wall Street et. al. analysis.

fwiw,
doody.
 
Re: should we believe \"LIMITED PRODUCTION\" ???

Last year I heard them say 4,500 (1,500 per year for three years).
 

Devin

Supporter
Re: should we believe \"LIMITED PRODUCTION\" ???

Don't get me wrong, I love the Ford products.

But, under current Ford management I would take the word "limited" with a grain of salt.

Even the Mustang Mach 1 had a "limited" production in 2003 of what 10,000 units?? (not sure but you get the point)

It was originally towted at a "limited" production of 6,500 total but then continued production of X,000 more of the 2004 model too. Probably ending with twice as many made as Ford had elluded to in pre-production hype.

Devin
 
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