{"id":74625,"date":"2020-05-08T09:32:38","date_gmt":"2020-05-08T13:32:38","guid":{"rendered":"https:\/\/thatdope.com\/rides\/ferrari-sales-and-other-luxury-cars-beat-estimates-as-global-car-sales-plummet\/"},"modified":"2020-05-08T09:32:41","modified_gmt":"2020-05-08T13:32:41","slug":"ferrari-sales-and-other-luxury-cars-beat-estimates-as-global-car-sales-plummet","status":"publish","type":"post","link":"https:\/\/thatdope.com\/rides\/ferrari-sales-and-other-luxury-cars-beat-estimates-as-global-car-sales-plummet\/","title":{"rendered":"Ferrari sales and other Luxury Cars beat Estimates as Global Car sales plummet"},"content":{"rendered":"
As the economy teeters along the cusp of the next Great Depression, the luxury automotive segment appears to be enjoying an uptick in consumer spending. Ferrari just reported better than expected earnings earlier this week, on Monday 4th May, causing the Maranello carmaker\u2019s shares to jump almost 7%.<\/p>\n
The luxury carmaker shut its factory in March as the coronavirus ravaged the brand\u2019s Italian home but total shipments of Ferrari supercars increased 5% to 2,738 during the month-long furlough. Better-than-expected earnings \u2013 $1.02 billion, better than the projected $852 million caused Ferrari\u2019s share prices to surge, making the Italian luxury carmaker\u2019s market value worth more than mass market consumer car manufacturers Ford and General Motors.<\/p>\n
\n\u201cThe unexpected and sudden nature of the impacts of the pandemic are hitting the autos sector hard, with unprecedented levels of uncertainty around prospects for meaningful global recovery,\u201d said Colin Couchman, executive director, global autos demand forecasting at IHS Markit.<\/p>\n<\/blockquote>\n
The news comes amidst tempered expectations as factories resume production in China with business data firm IHS Markit forecasting lowered expectations as new COVID-19 safe work requirements makes it impossible to return to previous operational capacity, especially in a market of weaker consumer demand. From January through March, Chinese carmakers endured their weakest quarter as the lockdown shuttered factories, dealerships and kept consumers at home.<\/p>\n
According to the China Association of Automobile Manufacturers, demand started to return in March, an improvement from February\u2019s 79% drop but sales were still down 43% compared to the year before. While nearly all dealers across mainland China are back to work, and there are signs of an encouraging uptick in showroom traffic, consumer confidence remains fragile, quarterly sales declined year on year to 3.7 million vehicles with concerns on secondary impacts from the global contagion, which could further disrupt the recovery.<\/p>\n