Fiat to limit Ferrari output despite huge demand

 Fiat Chrysler Automobiles will keep a lid on production of newFerraris over the next five years despite huge demand in emerging markets likeChina, Fiat chief Sergio Marchionne said Tuesday.Marchionne said in Detroit that Ferrari sold 7,000 of its supercars in 2013 andexpects to sell the same number in 2018.  While rising wealth in China and other emerging markets could sustain expandingFerrari production to 10,000 units annually, Ferrari's management have agreed notto expand production for now."We want to keep production capped to preserve the brands uniqueness, whilecontinuing to search for opportunities in emerging markets but maintain exclusivityin mature ones," said Marchionne.At the same time, Marchionne said Ferrari will launch a new model every year, witha four-year life cycle for each new model.It will launch special limited series targeting the wealthiest customers and broadenits "personalization" of key models to boost Ferrari’s profit margins."That’s very good business for us," said Marchionne, adding Ferrari is also workingat improving the disappointing performance of its Formula One racing team.Marchionne was speaking at an all-day presentation of the strategy for the newly- merged Fiat Chrysler, parent of the iconic italian racing machine.even though Fiat has been struggling in Europe, he dismissed any suggestion ofselling Ferrari. Analysts have undervalued Ferrari’s overall worth to its parent, he insisted.Analysts put Ferrari's value at 3.4-5.5 billion euros ($4.7-7.7 billion), but Marchionneargued a more accurate valuation would be twice that.Luxury goods companies usually sell for 9-12 times gross earnings, he said. "All you have to do is do the math ....  Remember that the next time you look at ourbalance sheet," he told analysts in Detroit.