Ferrari Is the World’s Strongest Automotive Brand
Luca Di Montezemolo Maintained Ferrari’s Exclusivity, but Marchionne Has Skyrocketed Its Value
Automotive manufacturers aren’t only skyscrapers with logos atop, or huge manufacturing facilities across the globe. They’re actual living and breathing brands. Like all brands across all industries, they have employees, customers, suppliers, and more importantly—a public perception. The latter makes a brand extremely valuable, or quite the opposite.
According to studies by Brand Finance, Ferrari is the world’s strongest automotive brand. Not only that, but the boys in red have stretched their gap to the world’s second strongest brand — Porsche. Now that’s something to brag about.
Brands are first evaluated to determine their power and strength based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation. As a result, brands are then given a corresponding letter grade up to AAA+.
After taking all the aforementioned qualities into consideration, Ferrari’s brand emerged winner given its value surge of 40% to $6.15 billion in 2017. The reason for the drastic surge has a very specific name: Sergio Marchionne. The FCA boss has increased the auto maker’s annual production cap from 7,000 to 9,000 units. Furthermore, a new Ferrari Land is scheduled to open in Porto Aventura, Spain in the spring, further exploiting the prancing horse brand.
Former Chairman Luca di Montezemolo was an eccentric man, but also an extremely ruthless and clever individual. He looked after Ferrari’s exclusivity as much as the Swiss Guard does the Pope.
Brand Finance CEO David Haigh comments, “The fact Ferrari has boosted revenues without compromising brand strength suggests that it has found the perfect formula to sustainably exploit brand equity to maximize shareholder value.”
Ferrari’s $6.15 billion brand value is dwarfed by Toyota’s $46.3 billion, who also happens to be the most valuable automotive brand in the world. At least until Nissan and VW dig their heels and try to catch up.
Chime in with your thoughts on the forum. >>
