Luca di Montezemolo

And the really impressive thing about Ferrari is...

The cars are just different enough where they deserve different names, but a lot of the R&D and the components are carried over.

When you look at the internals from some of these cars to the next generation that carry a different name, that have a different body style, they are different, but you can see the manufacturing learnings.

I don't want to say they reuse components, but they're heavily inspired by a lot of the fixed cost work that was done before.

Yeah.

So in the past, dealerships worked a lot more like the traditional model where dealers would have clients and they would get to allocate cars.

Now the allocation is done centrally by Ferrari and the dealerships really serve more as distribution, operations, and service.

And I've been thinking about it less as a dealer network and more as a franchised service and delivery infrastructure with Ferrari owning the actual customer relationship.

Yeah.

It's like you get to own the local franchise in your city that takes care of this stuff.

But they're Ferrari customers.

They're not really your customers.

Yes.

Dealers do, however, play a huge role in the secondary market.

And Ferrari knows it's in their interest to have a thriving secondary market, since given how few new cars there are, the entry-level Ferrari is really a used Ferrari.

And so it's the way to sort of cultivate the next generation of owners.

So they incentivize dealers to buy and sell

by giving them 100% of the economics on a secondary market transaction rather than being involved in that in any way.

So dealers often exist as a way to source used Ferraris for buyers.

There have been 330,000 Ferraris ever made, and almost 300,000 of them are drivable.