Coronavirus Effect: Ferrari Is Valued More Than GM And Ford Ford Right Now

• Ferrari produces only 10,000 cars per year.
• On the other hand, General Motors produces around 7.7 million cars.
• Ferrari’s revenue only took a hit of 1 per cent.

Maranello-based supercar giant Ferrari is now worth more than established volume players GM and Ford. How did this happen? Well, Ferrari is now valued at $30 billion (Rs 3000 crore) as opposed to Ford at $19.2 billion (Rs 1900 crore) and GM at $29.3 billion (Rs 2900 crore).

Maranello’s market shares took a steep jump of 7 per cent a couple of days ago. The carmakers shut its factory in March, as Italy was one of the worst-affected countries by COVID-19. Despite that, the company’s global shipment saw a hike of 5 per cent to 2758 units in 2020. The overall revenue also only took a minor hit of 1 per cent. On a positive note, Ferrari has already opened its factory and commenced production.

In contrast, the Italian carmaker’s yearly output stands at 10,000 units while GM produces a whopping 7.7 million cars! Investors also suggest that Ferrari might power through the crisis better than any other carmaker on this planet.

Earlier this year, Ferrari was named the most powerful brand in the world beating Google, Disney, Coca-Cola and Rolex. Ferrari also has a solid merchandise business. Coming to cars, Ferraris have always been the cream of the lot with rich heritage and solid engineering expertise.

The same cannot be said for FCA, Ferrari’s parent company. The Italian giant is taking a huge hit with various plant shutdowns and stagnant numbers. FCA reported a loss of $1.8 billion (approx Rs 200 crore) in the first quarter of 2020.