{"id":33580,"date":"2017-07-13T09:04:27","date_gmt":"2017-07-13T13:04:27","guid":{"rendered":"https:\/\/thatdope.com\/rides\/ferrari-celebrates-70-years-an-interview-with-dieter-knechtel-ceo-ferrari-far-east-hub\/"},"modified":"2017-07-13T09:04:27","modified_gmt":"2017-07-13T13:04:27","slug":"ferrari-celebrates-70-years-an-interview-with-dieter-knechtel-ceo-ferrari-far-east-hub","status":"publish","type":"post","link":"https:\/\/thatdope.com\/rides\/ferrari-celebrates-70-years-an-interview-with-dieter-knechtel-ceo-ferrari-far-east-hub\/","title":{"rendered":"Ferrari Celebrates 70 Years: An Interview with Dieter Knechtel, CEO Ferrari Far East Hub"},"content":{"rendered":"
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<\/p>\n

As Ferrari celebrates the\u00a070th anniversary of the \u201cPrancing Horse\u201d, Luxuo was among the selected media invited to Ferrari Singapore\u2019s corporate headquarters\u00a0to talk to Dieter Knechtel, CEO of Ferrari Far East Hub to discuss the challenges of growing a luxury business\u00a0amidst soft global markets, catering to the affluent and the overall direction of the world\u2019s market leader of high performance sports cars.<\/p>\n

Ferrari recently launched the 70 years anniversary tailor-made project at the motor-show last year where designers of Centro Stile have put a modern twist on the stylistic features and elements that distinguished 70 of the most beautiful Ferraris in history and in so doing have created 70 unique \u201cdesign\u201d.\u00a0350 cars were proposed in total, that is to say 70 different liveries x 5 models.\u00a0Seventy exclusive liveries, each created just the once for every car in the current range, blend the past with the future to create the icons of tomorrow. The inspiration comes from extraordinary models such as the 375 MM Pinin Farina Berlinetta that Roberto Rossellini ordered for Ingrid Bergman.<\/p>\n

\"Exterior<\/p>\n

Exterior in Rosso Ferrari 53, a dark solid red inspired by the first Ferrari ever built. Number \u201c56\u201d on the door. Livery around the front grille.<\/p>\n<\/div>\n

\"The<\/p>\n

The 125 S was the very first official racing sports car built by Enzo Ferrari and his team in 1947. It made its d\u00e9but on May 11 at the Piacenza racing circuit. With its bold red exterior and elegant silhouette, this model has become a true icon.<\/p>\n<\/div>\n

According to Knechtel, his colleagues were skeptical that they\u00a0could find the customers to buy those cars but in the end, they\u00a0were surprised that the cars were sold out during the summer of 2016, between the end of June and the middle of August. Such is the fervour for Ferrari sports cars that Luxuo was dying to uncover how the\u00a0Prancing Pony is little impacted\u00a0by the slow down as the rest of the luxury industry.<\/p>\n

Jonathan Ho for Luxuo: It\u2019s always interesting to talk to C-suite executives when markets are a little uncertain, almost everyone has an unique perspective on the situation.<\/strong><\/p>\n

Dieter Knechtel, CEO Ferrari Far East Hub:<\/strong> We are a little bit different in that Ferrari can operate in pretty much any economic environment.\u00a0Based on some marketing studies which project till 2025, I can tell you that the number of wealthy people are still growing.<\/p>\n

People say that the Singapore economy is flat and slowing with GDP growth hovering around 1.9% but that\u00a0is normal for a developed economy.\u00a0Yet, the number of high net worth individuals will continue to grow over the next 10 years and this is a development which won\u2019t stop. This is where we see the potential.<\/p>\n

\"Exterior<\/p>\n

Exterior in Rosso Mugello. Thin silver line at the bottom of the windows and windshield. Chromed grilles and ball polished rims.<\/p>\n<\/div>\n

\"The<\/p>\n

The 212 Inter Vignale cabriolet (1951) is admired for its sheer beauty and flair. Indeed it was awarded second place in the Ferrari Grand Touring class at Pebble Beach in 2014.<\/p>\n<\/div>\n

What about in context with the rest of\u00a0East Asia?<\/strong><\/p>\n

We see this growing affluence in Asean but really we see this everywhere even in Japan and Australia. Philippines and Vietnam is going strong, Thailand is softer at the moment but Ferrari is not dependent on GDP growth per se but rather the potential size of the segment. For example, in Thailand we have 340% luxury tax but its the market where we sell the most cars in Asean so we do not depend on GDP or tax factors but really on how we work with our partners and distributors and how solid the processes are implemented, how they are representing the brand which makes more of an impact than the environment because our products are highly attractive.<\/p>\n

There\u2019s a consistency in what we do and there\u2019s a value in staying true all the time and the clients can see it. From the product point of view we have everything we need and now it\u2019s up to how we do the work. The key point is that there are many potential customers; and some high net worth individuals have never considered why they might need a sports car and we have to develop this desire. This desire is usually cultivated with dynamic presentation of the car \u2013 touch, feel and personalised effort with someone who had never previously thought about buying one. We have many customers visiting Marenello for an unrelated reason but after we take them to the track to experience a car, they always end up wanting one.<\/p>\n

Let\u2019s start off with something which hangs over the head of every car enthusiast in Singapore. A while ago, Hong Seh Motors, former Singapore distributors for Maserati had a letter which went viral on social media. In it, they posited that government taxes like COE, ARF, GST, CEV, etc, essentially triples the cost on a $100k Ghibli. Citing rental and difficult markets, they have elected to relinquish distributorship, do you feel your partner Ital Auto feels similar pressures?<\/strong><\/p>\n

This is the same situation for Ferrari, they cost three times here than they do for Europe. \u20ac230,000 times three becomes \u20ac690,000 here and plus options, it\u2019s almost close to a million euros and I think this is something we have to live with and have proven that we can live with.<\/p>\n

We have been growing for the last 20 years\u00a0even when they introduced higher and higher taxes. It is still possible to do business here at a reasonable level and Ital Auto is a very strong partner and have been doing a very good job over the past years.<\/p>\n

They dare step into Maserati in SIngapore because they know what they are doing and they can see the potential plus,\u00a0they have a lot of experience with the brand as the\u00a0biggest dealer for Maserati in the world through Shanghai. They know the game, understand the context, I don\u2019t see any worry or pressure, it\u2019s about doing a good job and being of service to the customer, it\u2019s not about selling more cars, it\u2019s important to sell cars but it is more important to do the right thing with the brand.<\/p>\n

\u00a0<\/p>\n

\"High<\/p>\n

High key events like Singapore RendezVous allow an opportunity for the Ferrari Owners Club Singapore to get together and share their passion with like minded individuals<\/p>\n<\/div>\n

When you say doing a good job for the customer, does this imply that Ferrari\u00a0being arguably a more recognisable marquee that you don\u2019t really need to work on the branding anymore because all you need is to properly service the customers that walk in based on sheer demand?<\/strong><\/p>\n

We still have to work on the branding even though it\u2019s very well recognised and reputable. We don\u2019t do any advertisements and we use racing and Formula 1 as our communications platform. Though We don\u2019t need to build up the brand anymore, we need to over-fulfil our brand promise.<\/p>\n

When it comes to Ferrari, this brand experience is very much related to the ownership experience: It\u2019s about driving and the experience of the\u00a0car while\u00a0doing it in a community of like-minded people. This is why, we organise track days and tours in Italy with road tours in different countries, we can organise almost any experience with the car- What we offer to our customers is often a \u201cmoney can\u2019t buy\u201d experience.<\/p>\n

\"Ferrari<\/p>\n

Ferrari Owners Club Singapore organises their own get-togethers independent of Ital Auto or Ferrari, it\u2019s a strong community<\/p>\n<\/div>\n

Between the clients, there\u2019s a lot of communication because there\u2019s mutual understanding of successful, globally minded, life-loving, taste-masters. I think this sort of ownership experience is a big part of our job. Singapore Ferrari owners-club is a great community.<\/p>\n

When it comes to reaching out to new prospects, we have to execute a different sort of effort and that means finding possibilities to excite prospects with our products and letting them experience how great it is to drive a Ferrari. Sometimes the mindset just isn\u2019t there yet because it\u2019s a high tech fast car, we have address some\u00a0concerns, notably that a high performance sports car might be difficult to drive or unsafe to use on a daily basis but once you drive a Ferrari you will begin to see how easy it is and how you are much in control of everything because all the technological systems support you. Additionally, we instruct them on how to handle it and it inspires a lot of people.<\/p>\n

\"Dashboard<\/p>\n

Dashboard view of the royal blue 500 Mondial Pinin Farina spider (1954), one of only 14 open-top models of this series built by Pinin Farina. Onboard computers weren\u2019t a \u201cthing\u201d yet.<\/p>\n<\/div>\n

\u00a0<\/p>\n

Do you feel this technology is double edged in that many car enthusiasts prefer that the onboard computer doesn\u2019t handle so much of the driving experience?<\/strong><\/p>\n

At Ferrari, the computer essentially monitors speed and has algorithms to avoid risk or potential unsafe actions. Stability programs also allow for different levels of driving experience and that is selected through user selected toggles, adjusted for environment and driving style, so owners can have fun with the car. At the same time, passive safety is very important and we developed many things which contribute to safety of the passenger in extreme situations. Dynamic vehicle controls come with a corresponding improvements in safety so that everything can be safe for driver and passenger.<\/p>\n

\"For<\/p>\n

For Ferrari\u2019s 70th anniversary, the Blu Electtrico may bear the number \u201c235\u201d like the 1954 model but the dashboard is vastly different thanks to high tech displays and dynamic control systems which ensure smoother control for even the unaccustomed.<\/p>\n<\/div>\n

Correct me if I\u2019m wrong but some Maseratis share a powertrain with\u00a0Ferrari\u00a0(in that they are built at the\u00a0Ferrari\u00a0factory in Marenello), does this arrangement with Ital Auto puts both brands on a collision course especially with joint history from before?<\/strong><\/p>\n

The V6 and V8 engine of Maserati are produced by Ferrari. We don\u2019t have V6, that\u2019s exclusive for Maserati, the V8 which Maserati uses is a variant of the one we use at Ferrari. There are modifications to the engine which changes the characteristics for Maserati, so while it may be the same basic product, it\u2019s a different experience.<\/p>\n

To put this in context, having sat in a Rolls Royce and in a Maybach, sometimes the luxury experience is too similar so now that Ital Auto will carry both Maserati and Ferrari, how will you differentiate yours?\u00a0<\/strong><\/p>\n

I don\u2019t think the experience is too similar. I believe that we have a totally different strategy. Maserati is going into volume while we are staying exclusive. A Ferrari is an unique experience and it\u2019s a personal piece of art plus we are at a different price point and performance point of view, there\u2019s a world of difference. We are not competing with Maserati at all.<\/p>\n

Historically, Maseratis were marketed alongside Ferraris in the network, in China, it\u2019s basically every dealer. In Singapore, it\u2019s going to be a mono-brand set up which means even the management teams and processes are different and quite likely the customers are different as well.<\/p>\n