Sports car manufacturer Ferrari intends to raise the prices of their cars by ten percent in the US market after the president Donald Trump reported new duties on cars and car parts.
The United States is Ferrari’s largest market. About a quarter of the Ferrari is sold to the United States. The company makes all its cars in northern Italy in Maranello.
According to Bloomberg, the company reported that its profit margins may be reduced, but kept up with the instructions it had previously given.
The company’s share rose almost 2 % on the Milan Stock Exchange and almost 3 % in the US market, while the stock prices of other car manufacturers, such as Porsche and Mercedes-Benz, were declining.
According to Bloomberg, Ferrari prices start from about $ 250,000 upwards. At most, model prices can reach several million dollars. Ferrari’s sales in the United States grew by about six percent to 3452 cars last year.
For Ferrari, price raises are unlikely to have a significant impact on sale, believes the investment company Bernsteinin analysis.
According to the analysis, hardly any other product clientele is equally ready to accept the price lifting brought by import duties. The rise in prices is softened by the fact that the prices of the old Ferrari owners of Ferrari are also rising.