Ferrari: How They Became The Symbol Of Luxury
Ferrari’s IPO was valued at $21 billion this year. This is a drastic increase from the $10 billion that it capped in 2015. This makes Ferrari among the most recognizable as well as valuable car makers in history. The Ferrari logo, the prancing horse, has become synonymous with money, sex, and high life. However, it was not always like this for Ferrari. The beginnings or the company are quite humble. The tale of Ferrari is the tale of a car manufacturer named Enzo Ferrari who took up a simple startup company and transformed it into one of the biggest most glamorous brands the world has known.
The story, undoubtedly, has to begin with Enzo Ferrari. In 1908 he saw his first ever race car at the age of 10. He then became addicted to racing and the concept of the racecar. As he grew into a young adult, he was drafted by the government to go and fight for Italy in the World War 1. After the war, he found it hard to find meaningful employment in the automotive industry. He applied for Fiat but was rejected on the basis that there were too many unemployed veterans.
Into the industry
Eventually, Enzo Ferrari found work at smaller automotive companies. He worked till he got a job at Alfa Romeo as a race car driver. While there he launched the Scuderia Ferrari which was a team of people that raced the Alfas they owned. By 1933, Scuderia Ferrari was the racing team for Alfa Romeo. The team was disbanded in 1937 and Ferrari became head of the factory operations at Alfa.
On his own
Enzo then left the Alfa Company in 1939 and began his own company, the Auto Avio Construzioni. The first car he produced was known as the AAC 815. He was restricted from using his own name in any car or race due to a non-competence agreement. The agreement expired after 4 years. His operations were curtailed by World War 2 but he resumed in 1945 and launched the 125. The first car to have the signature V12 and the first car to have the Ferrari brand.
A successful racing driver known as Luigi Chinetti approached Enzo proposing they mass produce sports cars in the late 40s. Enzo was hesitant as the point of the company was winning races but he gave in in the 1950s. The first Ferrari dealership was opened in the US. Chinetti’s own showroom was located in Manhattan but was moved eventually to Connecticut.
The rest is history
The United States became, and remains to be, the most lucrative market for Ferrari’s vehicles. The businesses floodgates then opened. There followed legendary cars like the California Spider, the Ferrari GTO, and the Testarossa. Beautifully crafted cars that made the Ferrari badge a symbol of luxury.
Due to the necessity for additional resources, Ferrari sold more than 50% of the company to Fiat. Enzo passed in 1988 but before then had a chance to sign off one of the most iconic cars in locomotive history, the Ferrari F40. After his passing, the Luca di Montezemolo, a longtime executive, took the helm of President and under his careful guidance, the Ferrari became a global brand of luxury. Today the sports cars of the company go for hundreds of thousands of dollars and its hyper cars for millions.