How Ferrari plans breaking into new market segments such as SUVs?
Photos: CAR magazine
Despite the fact that Enzo Ferrari was only interested in building race cars and that former Ferrari CEO Marchionne was against the idea of building a Ferrari SUV, while the company’s Design Director Flavio Manzoni said that Ferrari is not a follower, Ferrari is making an SUV (Sport-Utility Vehicle). Everyone imagines Ferrari cars as the traditional two-door sports car; however, the Italian sports car maker couldn’t resist market pressure.
Ferrari’s long-awaited SUV isn’t expected to satisfy enthusiasts at first, but the company promised that the Purosangue will drive like a Ferrari due to a combination of performance and luxury attributes. Enthusiasts consider that an SUV, or what Marchionne referred to as an "FUV" (Ferrari Utility Vehicle), will damage the brand because it’s not within Ferrari’s DNA. Rumors suggest its design will be derived from the Roma, Maranello’s newest grand tourer. The "Purosangue", will come to market in early 2022 with a plug-in hybrid powertrain and V6, V8, or V12 engines possible.
Lately, the 2022 Ferrari Purosangue SUV has been caught on a winter test in the Arctic Circle with a test mule body based on the Maserati Levante with a few modifications like shorter rear doors, a bigger grille, a longer bonnet, and a larger air intake.
Building this FUV will be a significant move for Ferrari that will open a new segment for the company in the car market to attract new customers seeking an ultra-luxury, high-performance SUV. Ferrari will attack this market segment by crafting an unusual and unique machine and will rather improve its technology to keep the brand’s DNA alive by meeting the requirements of their cars. Ferrari’s effort to draw new customers and attract its current clients will accelerate the company’s sales and meet its profit-growth goals thanks to a growing wealthy class in new markets like China.
The SUV market is not easy for a business to get into, specifically when the competitors present have positions firmly installed. Some of the leading companies in the world are dominating this market segment. Ferrari should invest large amounts of money in the Purosangue to make it like no other performance or ultra-luxury SUV on the market and compete against the 626-hp Bentley Bentayga, the 641-hp Lamborghini Urus, and the Aston Martin DBX.
Will Ferrari maintain its exclusivity by increasing production with the introduction of an SUV?
Entering segments Ferrari doesn't participate in now, like the SUV market, will not hinder its exclusivity, generate sales losses for its existing products, or draw customers away from the established product. The marketing "cannibalization" phenomenon won’t occur as a result of the introduction of the new product, the purosangue, by the same producer, Ferrari. This will give Cavallino Rampante considerable advantages, like pricing power, thanks to its exclusivity and mystique brand image.
Whether it turns the nose or not, every Ferrari enthusiast is confident the company will produce an exceptional car. We are curious to discover what it will look like!
