Wealth

Ferrari to cap production in 2014

Ferrari profits from selling less
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Ferrari profits from selling less

Most car companies want to sell more cars. Ferrari wants to sell less. And so far, its strategy has been highly profitable.

Ferrari last year decided to reduce its production to below 7,000 cars, compared with the 7,300 it produced in 2012. The aim, the company said, was to maintain the brand's exclusivity and sell a more expensive mix of cars.

So far, the less-is-more strategy is working. Ferrari said last year's revenue rose 5 percent to $2.335 billion, with profit increasing to $364 million from $335 million in 2012. North America remained the company's largest market, with 2,242 cars shipped.

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The question, however, was whether Ferrari planned to keep its production cap this year or even next.

Ferrari Chairman Luca Cordero di Montezemolo presents the Ferrari California T during the 84th International Motor Show on March 4, 2014, in Geneva.
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In an interview with CNBC, at the Geneva Auto Show, Ferrari Chairman Luca Cordero di Montezemolo said the company is planning on sticking to its cap of 7,000 cars this year.

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"For sure this year, and maybe even next year because I don't want to inject too many cars into the market," he said.

By making fewer cars, Ferrari may be missing out on some short-term sales. But it's looking at the long game—and especially at the markets for used Ferraris and classic Ferraris. Sales of vintage Ferraris have been setting records almost monthly, with a 1957 Testa Rossa recently selling in a private sale for $40 million and a 1967 Ferrari 275/GTB/4*S N.A.R.T for $27.5 million last year.

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Ferrari wants its cars to be seen as reliable investments—not just four-wheeled toys for the rich.

"I always say we don't sell a car, we sell a dream," di Montezemolo said. "And to sell a dream you have to maintain exclusivity, you have to invest huge money into innovation, into new technology, but also you have to do beautiful cars, classic, even looking ahead in terms of design."

—By CNBC's Robert Frank. Follow him on Twitter @robtfrank.