Ferrari to raise US prices up to 10%

Sorry but I don't think so. Will some things go up? Yes. But everyone is going to take a margin cut to try not to increase prices. The consumer does pay the tariff, kind of. In fact everyone does because a sudden shock to pricing brings in a sudden shock to sales. So everyone tries to minimize the impact to the end consumer and be "creative" or put pressure on suppliers, use technology to reduce costs, or find legal ways around them.

And if tariffs "wreck" economies, then why are there tariff wars? Aren't the countries that retaliate just hurting themselves? You would think it would be the last thing they would do, not the first.

Sometimes change is good. If forces business to think outside the norm. Tariffs increases are no different than dealing with inflation or currency changes, which happen constantly.

The wealthy will still pay. Its up to Ferrari to make sure their value is still there. And that's a good thing.

 

The 25% tariffs are on top of existing tariffs.

 

So, we have tariffs. We always have had tariffs on a lot of goods

What you object to is increasing tariffs.

So its like the old joke. A guy offers a girl $1M to sleep with him. She says "yes". Then he offers her $1 and she scoffs and says "what do you think I am?". The guy says "we know what you are. We are just haggling the price"

Its EXACTLY how tariffs work. We are haggling the price.

 

They respond despite being counter productive due to domestic political pressure. That is why the conservatives in Canada are getting smoked despite a 30 point lead before this all started. They are viewed as too close to Trump and therefore cannot be trusted. Fair or unfair it is what it is.

 

I only see Canadians. Not sure what you see.

 

EU charges a 10% tariff currently on American cars sold in the EU
US charges a 2.5% tariff currently on European cars sold in US

One can only hope that this 25% tariff announcement is a shot at getting investment commitments and trade imbalances more even and they do not go into effect at all on April 2nd. This could all be a pure negotiating tactic in the end to get a desired response of some sense urgency and a deal in place to avoid them.

Wishful thinking is all.

 

If the tariff is 25% and the cost of the vehicle goes up 10% to the buyer then the end user is not paying all the increased cost on the purchase.

Will the dealer hose you on increased costs elsewhere? Absolutely. Will Ferrari increase their base prices to make up for their loss? Absolutely. But both were going to do that anyway increased tariff or not.

 

A 10% or 25% tariff is just a fuzzy business number. Many hear see it as consumer retail + 20%. Tariffs, inflation, Covid are all excuses for a price increase. All sales are some multiple of cost. No one sells at cost. Retail could be 5x cost for example. When a material, 25% tariff, 8% inflation the seller does not try to break even he figures the multiplier or even multiplier + and gives himself a raise. The best time for a seller to give himself a raise is when everyone raises prices and buyers are numb to price increases.

 

Pretty funny that Ferrari admits these are sales dogs with massive depreciation.

 

Acknowledging reality is always a good thing. And not just when it comes to cars.

 

Another interpretation is simply that SF90, 296 and Roma are on the way out, and the remaining number of cars left is small enough to eat the tariff cost and maintain goodwill with customers who've been waiting for a year or two.

 

The La Ferrari is the only hybrid that Ferrari made with good depreciation. The rest are on a submarine race - I don't know that Ferrari's not raising the price on those 3 models is an "acknowledgment" that hybrid cars are not as desirable in sports cars - it is a requirement of the draconian EU emissions requirements

 

Good thinking

 

I don't think the Limited edition ferrari's are depreciating. They seem to appreciate in value. LMK when you find me an SP3 at a discount!

 

The La Ferrari is the only HYBRID Ferrari that did well, which was my point - it seems that the other Ferrari Hybrids have not been well received.

Maybe if they release a Hamilton-inspired F40 Hybrid, that would be well received.

Allan

 

Roma is not a hybrid.

 

Might be what they might say, but would be a lie. And since when are they concerned with goodwill? They treat customers as wear items, to be discarded.

 

I’m not going to sit here and argue the toss with the few people above saying that the consumer doesn’t pay the tariffs and that the manufacturer will absorb the hit. Instead, let’s come back here in 12 to 18 months and see who was right.

The facts we already know are that the dollar is sliding (making imports more expensive) and that the US stock market is sliding, making Americans poorer (pension savings etc.). Add to that the inevitable inflation and the US economy is in a sticky spot, to put it mildly.

All this is self-inflicted harm by the current administration and as I said before, it’s a real pity to be screwing it all up, considering how well economy was doing when this administration came to power.

Anybody with even a passing grasp of history or economics knows that tariffs and trade wars hurt consumers and national prosperity.

 

Europe charges more than 10% on US cars.
The 10% is just on factory price.
The real picture is at these screenshots: (base price no extras).
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how much are these "on the road" in the US?

 

The way the stock market is acting this week is not good. It is a tough time and it seems that these tariffs and the confusion and uncertainty surrounding them is effecting the economy in a negative manner. Let’s hope that history does not repeat itself like it did the last time our great nation went hard on tarrifs

 

I 100% agree with you. It’s not too late to abandon the tariff folly and concentrate on more important matters. None of your friends want to see a weakened USA, quite the contrary…

 

As far as my understanding and assumption of this ^ being based on pending increase on import tariffs to US, quite expected.

Just earlier this week I did a quick math on automotive replacement parts I’ve been reproducing last 25+ years by having them manufactured in EU, then import them in bulk to US and sell directly to consumers (i.e. vintage car owners) or their service/restoration contractors.
My next semi-annual stock shipment is due to come in mid-April and if the proposed 25% additional tariff is implemented as a part of the import duties & fees, for me to maintain my existing profit margin, I will have to increase their retail price about 10-12%.

Funny thing about these tariffs is that they too are just smoke’n’mirrors to keep general population distracted from much bigger and more worrisome issues. OTOH, this too is nothing new in the history of the world & nations in it.

 

OH NO - what are the bigger and more worrisome issues that we are facing? After today's stock market loss I cant think of anything more worrying