At the 2015 edition of the Shanghai Motor Show, held from 22 – 29 April, attracted 813,000 visitors plus some 10,000 journalists to see the latest Ferrari. But is it possible that the Facebook Generation no longer needs or even wants such a vehicle?
Why Ferrari will not be beaten by Facebook (but watch out for Apple!)
By Gijsbert-Paul Berk
No, Facebook does not compete in Formula 1 races and has neither announced any intentions of building fabulous sports cars. Nevertheless Facebook, as the world’s leading social networking service, is fast becoming serious competition for the magic Italian carmaker and other auto manufacturers. This is why!
Last December Sergio Marchionne, the Chief Executive of Fiat-Chrysler group which owns Ferrari, hinted at the possibility to raise cash for his company with an IPO (Initial Public Offering) to sell 10% of Ferrari to interested shareholders. Based on the actual turnover and profit margins, independent financial analysts have calculated that Ferrari has a market value of between 5 billion and 9 billion Euros. The difference is explained by the fact that some consider Ferrari simply as a car manufacturer and others as a luxury brand, a segment in which shares fetch a premium. As everyone knows the value of shares also depends on the expectations of investors concerning future profits.
Who needs one anyway?
For many generations automobiles were a symbol for freedom to travel and meet friends and family. But Internet and ‘social networking services’ provide the Z generation with alternatives.
Launched only 11 years ago, Facebook now has an estimated market value of nearly 225 billion USD (roughly 193 Euros). That is at least nearly 22 times the market value of the valiant Italian carmaker, officially established in 1947 but whose origins go back to 1929, when founder Enzo Ferrari established the Scuderia Ferrari in Modena. However, that is not all.
Another thought provoking fact is that a high percentage of students in the 17 to 23 years age group, are no longer very interested in owning a car. At least that is the conclusion of surveys in several countries in industrialized Western world.