Luca di Montezemolo, who has headed up Ferrari for over two decades and presided over record profits, has stepped down amid in-fighting with Fiat head Sergio Marchionne.
After joining Ferrari in the early 1990′s, di Montezemolo led a campaign to revitalize Ferrari, bringing in a lineup of vastly improved products and putting their Formula 1 team back on the road to success. Under his stewardship, Ferrari dominated the latter half of the 1990′s and early 2000′s, with Michael Schumacher, Ross Brawn, Rory Byrne and other motorsports all-stars working as one of the most dominant Formula 1 outfits in history.
In addition to their on-track success, Ferrari also found great financial success in the now ubiquitous merchandise licensing deals that were spearheaded by di Montezemolo, which has allowed Ferrari to maintain a lucrative revenue stream despite capping production of the cars at 7,000 units annually.
But that wasn't enough for Marchionne, who publicly criticized di Montezemolo's performance in Formula 1 this past week. Speculation is rife that Marchionne wants to expand Ferrari's production volumes to help it compete with Lamborghini, which many fear would dilute the brand's exclusivity.
On the other hand, the departure of di Montezemolo, who is credited with introducing milestone vehicles like the 355 (which replaced the dreadful 348), is being seen as a turning point in the brand's history. Marchionne has never had experience running any premium brands, and Ferrari is one of FCA's few profit centers. But many fear that this delicate balance will be permanently disrupted.
The post Ferrari Boss Steps Down As Marchionne Takes Control appeared first on The Truth About Cars.
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