Ferrari: What happens when you staple a luxury brand to a sports team? (Audio)

Okay, David. So, the question, do you Okay, David. So, the question, do you have a favorite Ferrari? have a favorite Ferrari? have a favorite Ferrari? >> That's a tough one. I would never >> That's a tough one. I would never >> That's a tough one. I would never actually want to get behind the wheel of actually want to get behind the wheel of actually want to get behind the wheel of it, but I think I got to go with the it, but I think I got to go with the it, but I think I got to go with the F40. F40. F40. >> Of course. >> Of course. >> Of course. >> I remember just being like a kid in >> I remember just being like a kid in >> I remember just being like a kid in elementary school and getting a model of elementary school and getting a model of elementary school and getting a model of one and thinking like, "Oh my god, this one and thinking like, "Oh my god, this one and thinking like, "Oh my god, this is the most incredible machine that is the most incredible machine that is the most incredible machine that mankind has ever created." mankind has ever created." mankind has ever created." >> Yeah. It's the defining supercar. >> Yeah. It's the defining supercar. >> Yeah. It's the defining supercar. >> Yes. Yes. How about you? >> Yes. Yes. How about you? >> Yes. Yes. How about you? >> I actually have two. One is the car from >> I actually have two. One is the car from >> I actually have two. One is the car from Charleslair's wedding. Charleslair's wedding. Charleslair's wedding. >> It's the 1957 250 Tessterosa. >> It's the 1957 250 Tessterosa. >> It's the 1957 250 Tessterosa. >> And the car from Ford versus Ferrari. >> And the car from Ford versus Ferrari. >> And the car from Ford versus Ferrari. That 1966 330 P3 is just beautiful. It's That 1966 330 P3 is just beautiful. It's That 1966 330 P3 is just beautiful. It's got these curves. It looks like a got these curves. It looks like a got these curves. It looks like a spaceship. It's gorgeous. spaceship. It's gorgeous. spaceship. It's gorgeous. >> H beauty and power. Story of Ferrari. >> H beauty and power. Story of Ferrari. >> H beauty and power. Story of Ferrari. >> Yes. All right. Should we do it? >> Yes. All right. Should we do it? >> Yes. All right. Should we do it? >> Let's do it. >> Let's do it. >> Let's do it. >> Who got the truth? >> Who got the truth? >> Who got the truth? Is it you? Is it you? Is it you? Who got Is it you? Is it you? Is it you? Who got Is it you? Is it you? Is it you? Who got the truth now? the truth now? the truth now? Is it you? Is it you? Is it you? Sit me Is it you? Is it you? Is it you? Sit me Is it you? Is it you? Is it you? Sit me down. Say it straight. Another story on down. Say it straight. Another story on down. Say it straight. Another story on the way. the way. the way. >> Welcome to the spring 2026 season of >> Welcome to the spring 2026 season of >> Welcome to the spring 2026 season of Acquired, the podcast about great Acquired, the podcast about great Acquired, the podcast about great companies and the stories and playbooks companies and the stories and playbooks companies and the stories and playbooks behind them. I'm Ben Gilbert. behind them. I'm Ben Gilbert. behind them. I'm Ben Gilbert. >> I'm David Rosenthal. >> I'm David Rosenthal. >> I'm David Rosenthal. >> And we are your hosts. Almost everyone >> And we are your hosts. Almost everyone >> And we are your hosts. Almost everyone needs transportation. It is a giant needs transportation. It is a giant needs transportation. It is a giant market serving a huge human need and it market serving a huge human need and it market serving a huge human need and it is one of the top three things that is one of the top three things that is one of the top three things that households spend money on along with households spend money on along with households spend money on along with their housing and their food. And the their housing and their food. And the their housing and their food. And the automobile has become the default way automobile has become the default way automobile has become the default way that humans move around the world. that humans move around the world. that humans move around the world. >> And that is not what we're talking about >> And that is not what we're talking about >> And that is not what we're talking about today. And this episode has absolutely today. And this episode has absolutely today. And this episode has absolutely nothing to do with any of that. Today's nothing to do with any of that. Today's nothing to do with any of that. Today's episode, listeners, is about selling episode, listeners, is about selling episode, listeners, is about selling dreams. Oh yes, we are talking about dreams. Oh yes, we are talking about dreams. Oh yes, we are talking about Ferrari, one of the most paradoxical Ferrari, one of the most paradoxical Ferrari, one of the most paradoxical companies that we have ever studied here companies that we have ever studied here companies that we have ever studied here on acquired. Ferrari ships very very few on acquired. Ferrari ships very very few on acquired. Ferrari ships very very few cars, around 14,000 per year. That is cars, around 14,000 per year. That is cars, around 14,000 per year. That is approximately the number of Toyotas that approximately the number of Toyotas that approximately the number of Toyotas that are sold every 10 hours. are sold every 10 hours. are sold every 10 hours. But of course, we know Toyota and But of course, we know Toyota and But of course, we know Toyota and Ferrari are a silly comparison. So what Ferrari are a silly comparison. So what Ferrari are a silly comparison. So what about a company that we have covered in about a company that we have covered in about a company that we have covered in the past, Porsche? Yeah, the past, Porsche? Yeah, the past, Porsche? Yeah, >> even Porsche ships 22 times the number >> even Porsche ships 22 times the number >> even Porsche ships 22 times the number of cars that Ferrari does. And yet, even of cars that Ferrari does. And yet, even of cars that Ferrari does. And yet, even though almost nobody owns a Ferrari, though almost nobody owns a Ferrari, though almost nobody owns a Ferrari, only about 180,000 people globally, they only about 180,000 people globally, they only about 180,000 people globally, they have among the highest brand have among the highest brand have among the highest brand recognition. I would argue that over a recognition. I would argue that over a recognition. I would argue that over a billion people know what a Ferrari is billion people know what a Ferrari is billion people know what a Ferrari is easily. easily. easily. >> Which means, David, that Ferrari has the >> Which means, David, that Ferrari has the >> Which means, David, that Ferrari has the highest ratio of people who know about highest ratio of people who know about highest ratio of people who know about their products to people who actually their products to people who actually their products to people who actually own their products of any company in own their products of any company in own their products of any company in human history. >> I think we got to scope it to companies >> I think we got to scope it to companies that make products that are nominally that make products that are nominally that make products that are nominally available for purchase by consumers. But available for purchase by consumers. But available for purchase by consumers. But >> yes, >> yes, >> yes, >> but yes. >> but yes. >> but yes. >> Yes. Like the space shuttle is a >> Yes. Like the space shuttle is a >> Yes. Like the space shuttle is a product, but you can't go go buy a a product, but you can't go go buy a a product, but you can't go go buy a a space shuttle. So, I would say Ferrari space shuttle. So, I would say Ferrari space shuttle. So, I would say Ferrari is the only ultra luxury brand that has is the only ultra luxury brand that has is the only ultra luxury brand that has reached mass cultural awareness. reached mass cultural awareness. reached mass cultural awareness. >> Yeah, >> Yeah, >> Yeah, >> there's some fun numbers just to keep >> there's some fun numbers just to keep >> there's some fun numbers just to keep putting this in perspective. There are putting this in perspective. There are putting this in perspective. There are 10 times more Birkin and Kelly bags made 10 times more Birkin and Kelly bags made 10 times more Birkin and Kelly bags made each year over at Hermes than there are each year over at Hermes than there are each year over at Hermes than there are Ferraris. And there are 70 times more Ferraris. And there are 70 times more Ferraris. And there are 70 times more Rolexes made each year than there are Rolexes made each year than there are Rolexes made each year than there are Ferraris. Ferraris. Ferraris. >> Yeah, it's wild. >> Yeah, it's wild. >> Yeah, it's wild. >> The paradoxes continue. People are dying >> The paradoxes continue. People are dying >> The paradoxes continue. People are dying for their SUVs and yet they limit them for their SUVs and yet they limit them for their SUVs and yet they limit them to just 20% of total volume. to just 20% of total volume. to just 20% of total volume. >> Wait, what is this SUV of which you >> Wait, what is this SUV of which you >> Wait, what is this SUV of which you speak? speak? speak? >> I'm sorry. Ferrari utility vehicle cuz >> I'm sorry. Ferrari utility vehicle cuz >> I'm sorry. Ferrari utility vehicle cuz they would never they would never they would never >> Yes, the FUV. The Ferrari utility >> Yes, the FUV. The Ferrari utility >> Yes, the FUV. The Ferrari utility vehicle. vehicle. vehicle. >> Ford, here's another good one. Makes 160 >> Ford, here's another good one. Makes 160 >> Ford, here's another good one. Makes 160 times the number of cars that Ferrari times the number of cars that Ferrari times the number of cars that Ferrari does. Yet Ferrari has a higher market does. Yet Ferrari has a higher market does. Yet Ferrari has a higher market capitalization. They're worth more than capitalization. They're worth more than capitalization. They're worth more than the Ford Motor Company and Volkswagen the Ford Motor Company and Volkswagen the Ford Motor Company and Volkswagen and Honda and Stalantis and and Honda and Stalantis and and Honda and Stalantis and MercedesBenz. This company is worth so MercedesBenz. This company is worth so MercedesBenz. This company is worth so much more than most giant manufacturers. much more than most giant manufacturers. much more than most giant manufacturers. Ferrari makes all of their cars mostly Ferrari makes all of their cars mostly Ferrari makes all of their cars mostly by hand, inefficiently, and oneoff in a by hand, inefficiently, and oneoff in a by hand, inefficiently, and oneoff in a single town, Marinelo, Italy, and they single town, Marinelo, Italy, and they single town, Marinelo, Italy, and they have the highest margins in the entire have the highest margins in the entire have the highest margins in the entire auto industry. of the very few cars that auto industry. of the very few cars that auto industry. of the very few cars that they do make, this is my favorite one, they do make, this is my favorite one, they do make, this is my favorite one, David, about 80% of them are earmarked David, about 80% of them are earmarked David, about 80% of them are earmarked specifically for people who already own specifically for people who already own specifically for people who already own a Ferrari. a Ferrari. a Ferrari. >> Right. Right. Right. >> Right. Right. Right. >> Right. Right. Right. >> So that means there's less than 3,000 >> So that means there's less than 3,000 >> So that means there's less than 3,000 new customers buying Ferraris in any new customers buying Ferraris in any new customers buying Ferraris in any given year. given year. given year. >> It's actually completely insane, right? >> It's actually completely insane, right? >> It's actually completely insane, right? >> When you think about it, >> When you think about it, >> When you think about it, >> this funnel narrows pretty tight. So, >> this funnel narrows pretty tight. So, >> this funnel narrows pretty tight. So, how on earth did Ferrari manage to build how on earth did Ferrari manage to build how on earth did Ferrari manage to build this incredibly valuable business while this incredibly valuable business while this incredibly valuable business while selling their cars to almost nobody? selling their cars to almost nobody? selling their cars to almost nobody? Well, the answer is bloody. It is half a Well, the answer is bloody. It is half a Well, the answer is bloody. It is half a century of death and speed and love and century of death and speed and love and century of death and speed and love and feeling alive. And of course, there are feeling alive. And of course, there are feeling alive. And of course, there are some of the most clever business model some of the most clever business model some of the most clever business model mechanics that we have ever studied here mechanics that we have ever studied here mechanics that we have ever studied here on Acquired. on Acquired. on Acquired. >> It really is very Italian, you might >> It really is very Italian, you might >> It really is very Italian, you might say. say. say. >> Yeah, it's beautiful. It's tragic. It's >> Yeah, it's beautiful. It's tragic. It's >> Yeah, it's beautiful. It's tragic. It's romantic. romantic. romantic. >> There's death, sex, betrayal, and uh >> There's death, sex, betrayal, and uh >> There's death, sex, betrayal, and uh very, very fast cars. Well, listeners, very, very fast cars. Well, listeners, very, very fast cars. 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Payments. >> Yes, just like how we say every company >> Yes, just like how we say every company >> Yes, just like how we say every company has a story, every company's story is has a story, every company's story is has a story, every company's story is powered by payments. And JP Morgan powered by payments. And JP Morgan powered by payments. And JP Morgan Payments is a part of so many of their Payments is a part of so many of their Payments is a part of so many of their journeys from seed to IPO and beyond. journeys from seed to IPO and beyond. journeys from seed to IPO and beyond. >> So with that, this show is not >> So with that, this show is not >> So with that, this show is not investment advice. David and I may have investment advice. David and I may have investment advice. David and I may have investments in the companies we discuss. investments in the companies we discuss. investments in the companies we discuss. And this show is forformational and And this show is forformational and And this show is forformational and entertainment purposes only. David entertainment purposes only. David entertainment purposes only. David Rosenthal, take us to Italy. Ooh. All Rosenthal, take us to Italy. Ooh. All Rosenthal, take us to Italy. Ooh. All right. Well, we start in 1898 in the right. Well, we start in 1898 in the right. Well, we start in 1898 in the medieval Italian town of Monna with the medieval Italian town of Monna with the medieval Italian town of Monna with the birth of our hero Enzo Anelmo Jeppe birth of our hero Enzo Anelmo Jeppe birth of our hero Enzo Anelmo Jeppe Maria Ferrari. better known of course Maria Ferrari. better known of course Maria Ferrari. better known of course either by the name of the company he either by the name of the company he either by the name of the company he would found that bears his last name would found that bears his last name would found that bears his last name Ferrari or to his hundreds of millions Ferrari or to his hundreds of millions Ferrari or to his hundreds of millions of fans around the world simply as Enzo. of fans around the world simply as Enzo. of fans around the world simply as Enzo. So Enzo is born here in 1898 in Modina So Enzo is born here in 1898 in Modina So Enzo is born here in 1898 in Modina the second of two sons and his mother the second of two sons and his mother the second of two sons and his mother Adalisa is a beautiful young woman. His Adalisa is a beautiful young woman. His Adalisa is a beautiful young woman. His father, Alfredo, is 12 years older than father, Alfredo, is 12 years older than father, Alfredo, is 12 years older than his mother. And his father runs a his mother. And his father runs a his mother. And his father runs a successful metalworking shop and is kind successful metalworking shop and is kind successful metalworking shop and is kind of like a, you know, fairly wellto-do of like a, you know, fairly wellto-do of like a, you know, fairly wellto-do middle-class entrepreneur about town. middle-class entrepreneur about town. middle-class entrepreneur about town. And Enzo and his father are often at And Enzo and his father are often at And Enzo and his father are often at odds growing up. But, uh, part of his odds growing up. But, uh, part of his odds growing up. But, uh, part of his dad does rub off on him in this sort of dad does rub off on him in this sort of dad does rub off on him in this sort of entrepreneurial influence. His dad, uh, entrepreneurial influence. His dad, uh, entrepreneurial influence. His dad, uh, says something to him which sticks with says something to him which sticks with says something to him which sticks with Enzo for the rest of his life. A company Enzo for the rest of his life. A company Enzo for the rest of his life. A company is perfect when the number of partners is perfect when the number of partners is perfect when the number of partners in it is odd and less than three. in it is odd and less than three. in it is odd and less than three. I.e. don't take on partners. Always be I.e. don't take on partners. Always be I.e. don't take on partners. Always be self-sufficient. self-sufficient. self-sufficient. >> It's a great quote. We should say that >> It's a great quote. We should say that >> It's a great quote. We should say that much of this history, this whole episode much of this history, this whole episode much of this history, this whole episode comes from the fantastic really comes from the fantastic really comes from the fantastic really definitive biography of Enzo called Enzo definitive biography of Enzo called Enzo definitive biography of Enzo called Enzo Ferrari written by Luca Delonte who Ferrari written by Luca Delonte who Ferrari written by Luca Delonte who worked at Ferrari and Maserati for many worked at Ferrari and Maserati for many worked at Ferrari and Maserati for many years and then after he retired years and then after he retired years and then after he retired dedicated about a decade of his life to dedicated about a decade of his life to dedicated about a decade of his life to researching and writing this definitive researching and writing this definitive researching and writing this definitive biography. It's really excellent. So biography. It's really excellent. So biography. It's really excellent. So anyway, his mother and his father are anyway, his mother and his father are anyway, his mother and his father are always fighting. They're always yelling, always fighting. They're always yelling, always fighting. They're always yelling, arguing, swearing. And this has a very arguing, swearing. And this has a very arguing, swearing. And this has a very different effect on each of their two different effect on each of their two different effect on each of their two children. For Enzo's older brother, who children. For Enzo's older brother, who children. For Enzo's older brother, who is named after his father, he's also is named after his father, he's also is named after his father, he's also named Alfredo, nicknamed Dino to tell named Alfredo, nicknamed Dino to tell named Alfredo, nicknamed Dino to tell them apart. He, Dino, becomes like the them apart. He, Dino, becomes like the them apart. He, Dino, becomes like the golden child. He's the peacemaker, the golden child. He's the peacemaker, the golden child. He's the peacemaker, the pleaser, the stver, the smart and pleaser, the stver, the smart and pleaser, the stver, the smart and successful one. He's going to make his successful one. He's going to make his successful one. He's going to make his parents proud, and he's going to take parents proud, and he's going to take parents proud, and he's going to take over the family business. Enzo, on the over the family business. Enzo, on the over the family business. Enzo, on the other hand, as the younger brother, he other hand, as the younger brother, he other hand, as the younger brother, he just takes right after all the sort of just takes right after all the sort of just takes right after all the sort of less savory parts of mom and dad. He's less savory parts of mom and dad. He's less savory parts of mom and dad. He's mischievous. He doesn't apply himself in mischievous. He doesn't apply himself in mischievous. He doesn't apply himself in school or pay any attention. And you school or pay any attention. And you school or pay any attention. And you know, why should he? His family's got know, why should he? His family's got know, why should he? His family's got money for the place in time. His older money for the place in time. His older money for the place in time. His older brother, Dino, the golden child, you brother, Dino, the golden child, you brother, Dino, the golden child, you know, is going to make them proud. He's know, is going to make them proud. He's know, is going to make them proud. He's going to take over the family business. going to take over the family business. going to take over the family business. Enzo can just kind of knock about town. Enzo can just kind of knock about town. Enzo can just kind of knock about town. He dreams of someday maybe becoming a He dreams of someday maybe becoming a He dreams of someday maybe becoming a journalist or a opera singer mostly so journalist or a opera singer mostly so journalist or a opera singer mostly so that he can, you know, hang out with the that he can, you know, hang out with the that he can, you know, hang out with the show girls. show girls. show girls. >> Oh, what could have been a very >> Oh, what could have been a very >> Oh, what could have been a very different Enzo Ferrari? different Enzo Ferrari? different Enzo Ferrari? >> Uh, well, his life is an opera as we >> Uh, well, his life is an opera as we >> Uh, well, his life is an opera as we shall see. So, there's one thing though shall see. So, there's one thing though shall see. So, there's one thing though that really captivates Enzo's spirit, that really captivates Enzo's spirit, that really captivates Enzo's spirit, which is the new modern sporting and which is the new modern sporting and which is the new modern sporting and leisure pursuit of automobile racing. leisure pursuit of automobile racing. leisure pursuit of automobile racing. And one blissful night when Enzo is a And one blissful night when Enzo is a And one blissful night when Enzo is a teenager, he declares to his best friend teenager, he declares to his best friend teenager, he declares to his best friend his true intention in life. I am going his true intention in life. I am going his true intention in life. I am going to be a racing driver. And that dream to be a racing driver. And that dream to be a racing driver. And that dream does indeed come true, but probably not does indeed come true, but probably not does indeed come true, but probably not in any way that Enzo expected that night in any way that Enzo expected that night in any way that Enzo expected that night because very shortly thereafter, World because very shortly thereafter, World because very shortly thereafter, World War I breaks out and two tragedies War I breaks out and two tragedies War I breaks out and two tragedies happen to Enzo in quick succession. happen to Enzo in quick succession. happen to Enzo in quick succession. First, his father, Alfredo, contracts First, his father, Alfredo, contracts First, his father, Alfredo, contracts pneumonia and dies unrelated to the war. pneumonia and dies unrelated to the war. pneumonia and dies unrelated to the war. He just got pneumonia and and suddenly He just got pneumonia and and suddenly He just got pneumonia and and suddenly died. Shortly thereafter, died. Shortly thereafter, died. Shortly thereafter, his older brother, Dino, the golden his older brother, Dino, the golden his older brother, Dino, the golden child, goes off, enlists in the Italian child, goes off, enlists in the Italian child, goes off, enlists in the Italian army where he also contracts pneumonia army where he also contracts pneumonia army where he also contracts pneumonia and dies. So Enzo is left alone with his and dies. So Enzo is left alone with his and dies. So Enzo is left alone with his mother that he needs to support. the mother that he needs to support. the mother that he needs to support. the family business is gone. And because family business is gone. And because family business is gone. And because Enzo has never applied himself, he has Enzo has never applied himself, he has Enzo has never applied himself, he has no discernable skills or ability to no discernable skills or ability to no discernable skills or ability to continue it or, you know, really do much continue it or, you know, really do much continue it or, you know, really do much else that would uh provide gainful else that would uh provide gainful else that would uh provide gainful employment for him here. That was employment for him here. That was employment for him here. That was supposed to be Dino's role in the supposed to be Dino's role in the supposed to be Dino's role in the family. Now, before Enzo can stop to family. Now, before Enzo can stop to family. Now, before Enzo can stop to really think, he too gets drafted into really think, he too gets drafted into really think, he too gets drafted into the army where he also comes down with the army where he also comes down with the army where he also comes down with pneumonia and nearly dies, but he pneumonia and nearly dies, but he pneumonia and nearly dies, but he survives. He's the one who survives. He survives. He's the one who survives. He survives. He's the one who survives. He has a quote later in life where he sort has a quote later in life where he sort has a quote later in life where he sort of acknowledged this emotional burden of acknowledged this emotional burden of acknowledged this emotional burden and his life's work that he would go on and his life's work that he would go on and his life's work that he would go on to create where he said, "I feel alone to create where he said, "I feel alone to create where he said, "I feel alone after a life crowded by so many events after a life crowded by so many events after a life crowded by so many events and almost guilty of having survived." and almost guilty of having survived." and almost guilty of having survived." >> Yeah. I mean, the title of his memoirs >> Yeah. I mean, the title of his memoirs >> Yeah. I mean, the title of his memoirs is my terrible joys. Tells you is my terrible joys. Tells you is my terrible joys. Tells you everything you need to know right there everything you need to know right there everything you need to know right there about Enzo's life. about Enzo's life. about Enzo's life. >> Yep. So when he comes back home to Mona >> Yep. So when he comes back home to Mona >> Yep. So when he comes back home to Mona at the end of the war, he has no hope, at the end of the war, he has no hope, at the end of the war, he has no hope, but he does still have his dream of but he does still have his dream of but he does still have his dream of motor racing. And remember, he's still motor racing. And remember, he's still motor racing. And remember, he's still like a teenager basically at this point, like a teenager basically at this point, like a teenager basically at this point, a late teenager, early 20some. He starts a late teenager, early 20some. He starts a late teenager, early 20some. He starts making noise to his mom about selling making noise to his mom about selling making noise to his mom about selling the family house to finance buying a the family house to finance buying a the family house to finance buying a racing car and that he's going to go out racing car and that he's going to go out racing car and that he's going to go out and race this car and win prize money to and race this car and win prize money to and race this car and win prize money to support them. support them. support them. >> It's an audacious plan. >> It's an audacious plan. >> It's an audacious plan. >> It's an audacious plan. His mom is like, >> It's an audacious plan. His mom is like, >> It's an audacious plan. His mom is like, "Uh, no. "Uh, no. "Uh, no. How about instead, how about this? Why How about instead, how about this? Why How about instead, how about this? Why don't you go try to get a job at a car don't you go try to get a job at a car don't you go try to get a job at a car company and see where things go from company and see where things go from company and see where things go from there?" And so it's like, "Okay, okay, there?" And so it's like, "Okay, okay, there?" And so it's like, "Okay, okay, fair compromise." So his mom arranges fair compromise." So his mom arranges fair compromise." So his mom arranges for him to travel to Turan, big city in for him to travel to Turan, big city in for him to travel to Turan, big city in the northeast of Italy, where he the northeast of Italy, where he the northeast of Italy, where he interviews for a job at Fiat. And Fiat interviews for a job at Fiat. And Fiat interviews for a job at Fiat. And Fiat is the biggest Italian car company at is the biggest Italian car company at is the biggest Italian car company at the time and will come back up many, the time and will come back up many, the time and will come back up many, many times in this story. It is, as you many times in this story. It is, as you many times in this story. It is, as you all probably know, essentially the Ford all probably know, essentially the Ford all probably know, essentially the Ford Motor Company of Italy. And the family Motor Company of Italy. And the family Motor Company of Italy. And the family behind it, the Anellis, are the behind it, the Anellis, are the behind it, the Anellis, are the wealthiest and most important wealthiest and most important wealthiest and most important industrialists industrialists industrialists basically in the history of Italy. And basically in the history of Italy. And basically in the history of Italy. And today they own and control both today they own and control both today they own and control both Stalantis, which is the merged result of Stalantis, which is the merged result of Stalantis, which is the merged result of Viet Chrysler and Pujo. And they also Viet Chrysler and Pujo. And they also Viet Chrysler and Pujo. And they also own and control Ferrari. Don't worry, own and control Ferrari. Don't worry, own and control Ferrari. Don't worry, we'll get there. we'll get there. we'll get there. >> We'll get there, but not for I mean the >> We'll get there, but not for I mean the >> We'll get there, but not for I mean the better part of a century here. better part of a century here. better part of a century here. >> Yes. Yes. So back to Enzo here in 1918, >> Yes. Yes. So back to Enzo here in 1918, >> Yes. Yes. So back to Enzo here in 1918, Fiat of course rejects his job Fiat of course rejects his job Fiat of course rejects his job application because again he has no application because again he has no application because again he has no discernable skills. But Enzo is discernable skills. But Enzo is discernable skills. But Enzo is persistent and in 1919 he lands a job at persistent and in 1919 he lands a job at persistent and in 1919 he lands a job at a new startup automobile company called a new startup automobile company called a new startup automobile company called CMN. And there he pledges his future CMN. And there he pledges his future CMN. And there he pledges his future salary, like the next several months of salary, like the next several months of salary, like the next several months of his salary to purchase for himself one his salary to purchase for himself one his salary to purchase for himself one of the company's sports cars that he of the company's sports cars that he of the company's sports cars that he then goes off and takes racing. So he then goes off and takes racing. So he then goes off and takes racing. So he didn't have to sell his house to finance didn't have to sell his house to finance didn't have to sell his house to finance this dream, but he did pledge his future this dream, but he did pledge his future this dream, but he did pledge his future salary. Now, this is an important point salary. Now, this is an important point salary. Now, this is an important point to land here. With very few exceptions, to land here. With very few exceptions, to land here. With very few exceptions, one of which we'll talk about in just a one of which we'll talk about in just a one of which we'll talk about in just a minute, motor racing at this point in minute, motor racing at this point in minute, motor racing at this point in time was a private individual sport. time was a private individual sport. time was a private individual sport. Drivers generally bought and raced their Drivers generally bought and raced their Drivers generally bought and raced their own cars either because they were own cars either because they were own cars either because they were independently wealthy and successful and independently wealthy and successful and independently wealthy and successful and could afford their own staffs and could afford their own staffs and could afford their own staffs and mechanics to maintain these cars. These mechanics to maintain these cars. These mechanics to maintain these cars. These were folks known as gentleman racers. were folks known as gentleman racers. were folks known as gentleman racers. >> That's right. I've heard that term. >> That's right. I've heard that term. >> That's right. I've heard that term. >> Yes. And this is the group of people >> Yes. And this is the group of people >> Yes. And this is the group of people that ultimately once Ferrari gets that ultimately once Ferrari gets that ultimately once Ferrari gets founded become Enzo's core client base. founded become Enzo's core client base. founded become Enzo's core client base. Or the other group of drivers at this Or the other group of drivers at this Or the other group of drivers at this time are like Enzo. They're these kind time are like Enzo. They're these kind time are like Enzo. They're these kind of like hustlers and dreamers who manage of like hustlers and dreamers who manage of like hustlers and dreamers who manage to glom on somewhere in the car industry to glom on somewhere in the car industry to glom on somewhere in the car industry and leverage that into entering races. and leverage that into entering races. and leverage that into entering races. But basically motorsport was this like But basically motorsport was this like But basically motorsport was this like passionate sort of privateeer pursuit, passionate sort of privateeer pursuit, passionate sort of privateeer pursuit, not organized professional racers on not organized professional racers on not organized professional racers on highly paid teams. highly paid teams. highly paid teams. >> Yes. So Enzo enters into this world and >> Yes. So Enzo enters into this world and >> Yes. So Enzo enters into this world and he does pretty well. well enough not he does pretty well. well enough not he does pretty well. well enough not only to send some prize money back home only to send some prize money back home only to send some prize money back home to mom but also to attract the attention to mom but also to attract the attention to mom but also to attract the attention of Alpha Romeo which is Italy's other of Alpha Romeo which is Italy's other of Alpha Romeo which is Italy's other large car company at the time although large car company at the time although large car company at the time although much much smaller than Fiat and Alpha much much smaller than Fiat and Alpha much much smaller than Fiat and Alpha has one of Italy and Europe's few if not has one of Italy and Europe's few if not has one of Italy and Europe's few if not only in-house racing teams so even only in-house racing teams so even only in-house racing teams so even though most racing that's happening is though most racing that's happening is though most racing that's happening is privateeers Alpha has their own racing privateeers Alpha has their own racing privateeers Alpha has their own racing team which is pretty unique for Europe team which is pretty unique for Europe team which is pretty unique for Europe at the time So they scoop up this young at the time So they scoop up this young at the time So they scoop up this young hot shot talented driver Enzo to come hot shot talented driver Enzo to come hot shot talented driver Enzo to come and race for them. And this is a huge and race for them. And this is a huge and race for them. And this is a huge coup for Enzo. Like basically his whole coup for Enzo. Like basically his whole coup for Enzo. Like basically his whole dream as a teenager is coming true. He's dream as a teenager is coming true. He's dream as a teenager is coming true. He's racing. He's making money from prizes. racing. He's making money from prizes. racing. He's making money from prizes. He's part of this Alfa Romeo team that's He's part of this Alfa Romeo team that's He's part of this Alfa Romeo team that's going to support him, provide him great going to support him, provide him great going to support him, provide him great vehicles to race and also mechanics and vehicles to race and also mechanics and vehicles to race and also mechanics and everything he needs. So he hatches a everything he needs. So he hatches a everything he needs. So he hatches a plan that he's going to cash in on this plan that he's going to cash in on this plan that he's going to cash in on this newfound fame and notoriety by starting newfound fame and notoriety by starting newfound fame and notoriety by starting his own business. He's going to be an his own business. He's going to be an his own business. He's going to be an entrepreneur just like his dad. So at entrepreneur just like his dad. So at entrepreneur just like his dad. So at age 22 in 1920, Enzo starts his first age 22 in 1920, Enzo starts his first age 22 in 1920, Enzo starts his first company, a coach building business in company, a coach building business in company, a coach building business in Madna called Karatzeria Amelia. Now what Madna called Karatzeria Amelia. Now what Madna called Karatzeria Amelia. Now what is a coach building business? This is is a coach building business? This is is a coach building business? This is another really important point to another really important point to another really important point to understand about the car business at understand about the car business at understand about the car business at this point in time. For most companies this point in time. For most companies this point in time. For most companies and especially car companies that were and especially car companies that were and especially car companies that were making sports cars, the actual bodies or making sports cars, the actual bodies or making sports cars, the actual bodies or the coaches were built and designed by the coaches were built and designed by the coaches were built and designed by third-party coach builders. The cars third-party coach builders. The cars third-party coach builders. The cars were just an engine and a chassis that were just an engine and a chassis that were just an engine and a chassis that the car maker would deliver. And then the car maker would deliver. And then the car maker would deliver. And then the clients would go to a coach maker the clients would go to a coach maker the clients would go to a coach maker like this one that Enzo is starting up like this one that Enzo is starting up like this one that Enzo is starting up and have them build the body to their and have them build the body to their and have them build the body to their taste and specifications that would go taste and specifications that would go taste and specifications that would go on top of, you know, the mechanics of on top of, you know, the mechanics of on top of, you know, the mechanics of the car. the car. the car. >> Yeah. It reminds me of our Rolex episode >> Yeah. It reminds me of our Rolex episode >> Yeah. It reminds me of our Rolex episode where the movement makers were totally where the movement makers were totally where the movement makers were totally different than the case makers which different than the case makers which different than the case makers which were totally different than the jewelry were totally different than the jewelry were totally different than the jewelry stores that sold them. Not the sort of stores that sold them. Not the sort of stores that sold them. Not the sort of integrated way that we know it today of integrated way that we know it today of integrated way that we know it today of the movement maker is often the same as the movement maker is often the same as the movement maker is often the same as the case maker and then you often just the case maker and then you often just the case maker and then you often just sell sort of pseudo directly. sell sort of pseudo directly. sell sort of pseudo directly. >> Yes, totally. In this case, it's >> Yes, totally. In this case, it's >> Yes, totally. In this case, it's actually a holdover from the horsedrawn actually a holdover from the horsedrawn actually a holdover from the horsedrawn carriage days where the coach builders carriage days where the coach builders carriage days where the coach builders built carriages but they obviously built carriages but they obviously built carriages but they obviously didn't supply the horses. So the same didn't supply the horses. So the same didn't supply the horses. So the same thing starts to emerge here in the early thing starts to emerge here in the early thing starts to emerge here in the early automobile industry. So Enzo's automobile industry. So Enzo's automobile industry. So Enzo's admittedly pretty halfbaked plan here is admittedly pretty halfbaked plan here is admittedly pretty halfbaked plan here is that thanks to his sure to come, you that thanks to his sure to come, you that thanks to his sure to come, you know, new fame and fortune as an Alfa know, new fame and fortune as an Alfa know, new fame and fortune as an Alfa Romeo race car driver, customers, Alfa Romeo race car driver, customers, Alfa Romeo race car driver, customers, Alfa Romeo customers and customers of other Romeo customers and customers of other Romeo customers and customers of other car companies are going to come banging car companies are going to come banging car companies are going to come banging down his door to build their car bodies, down his door to build their car bodies, down his door to build their car bodies, to build their coaches. what the to build their coaches. what the to build their coaches. what the connection is between being a good race connection is between being a good race connection is between being a good race car driver and being a great coach car driver and being a great coach car driver and being a great coach builder. I'm not sure. And uh neither is builder. I'm not sure. And uh neither is builder. I'm not sure. And uh neither is the market because the business does not the market because the business does not the market because the business does not go well. It's a failure and within 2 go well. It's a failure and within 2 go well. It's a failure and within 2 years Enzo is bankrupt. Now perhaps years Enzo is bankrupt. Now perhaps years Enzo is bankrupt. Now perhaps relatedly, Enzo's sort of metal as a relatedly, Enzo's sort of metal as a relatedly, Enzo's sort of metal as a professional race car driver also proves professional race car driver also proves professional race car driver also proves to be good, but he's not great. He has to be good, but he's not great. He has to be good, but he's not great. He has all the talent, all the skill, but he all the talent, all the skill, but he all the talent, all the skill, but he comes to realize he doesn't have the one comes to realize he doesn't have the one comes to realize he doesn't have the one final thing that separates the true final thing that separates the true final thing that separates the true motorsport champions from everyone else. motorsport champions from everyone else. motorsport champions from everyone else. He's too afraid to die. He can't push He's too afraid to die. He can't push He's too afraid to die. He can't push himself and the car to the point that's himself and the car to the point that's himself and the car to the point that's really, really, really on the edge. really, really, really on the edge. really, really, really on the edge. >> The limit, as they say. >> The limit, as they say. >> The limit, as they say. >> The limit. Yes. Part of this, of course, >> The limit. Yes. Part of this, of course, >> The limit. Yes. Part of this, of course, is his sort of haunted past. You know, is his sort of haunted past. You know, is his sort of haunted past. You know, the deaths of his brother and father. the deaths of his brother and father. the deaths of his brother and father. death has had this huge presence in his death has had this huge presence in his death has had this huge presence in his life, but also it's very much his life, but also it's very much his life, but also it's very much his presence. So once he joins the Alfa presence. So once he joins the Alfa presence. So once he joins the Alfa Romeo team, there's two sort of senior Romeo team, there's two sort of senior Romeo team, there's two sort of senior drivers on the team who really take him drivers on the team who really take him drivers on the team who really take him under his wing as mentors and they under his wing as mentors and they under his wing as mentors and they become friends and Enzo watches them become friends and Enzo watches them become friends and Enzo watches them both die during races at the wheel. The both die during races at the wheel. The both die during races at the wheel. The first of which Enzo was the first person first of which Enzo was the first person first of which Enzo was the first person to find him and he actually literally to find him and he actually literally to find him and he actually literally died in Enzo's arms. And so after all died in Enzo's arms. And so after all died in Enzo's arms. And so after all these experiences, Enzo just he can't these experiences, Enzo just he can't these experiences, Enzo just he can't push himself to do the same thing over push himself to do the same thing over push himself to do the same thing over and over like they did. and over like they did. and over like they did. >> And that is the sick reality of racing, >> And that is the sick reality of racing, >> And that is the sick reality of racing, at least in this point in history, is it at least in this point in history, is it at least in this point in history, is it is the people who are absolutely willing is the people who are absolutely willing is the people who are absolutely willing to go right up to that line and and to go right up to that line and and to go right up to that line and and maybe cross it, maybe cross it, maybe cross it, >> often cross it. >> often cross it. >> often cross it. >> I mean, it kind of depends where you put >> I mean, it kind of depends where you put >> I mean, it kind of depends where you put the line. Those who win are the ones who the line. Those who win are the ones who the line. Those who win are the ones who are absolutely willing to die. are absolutely willing to die. are absolutely willing to die. >> I mean, in our Formula 1 episode, we >> I mean, in our Formula 1 episode, we >> I mean, in our Formula 1 episode, we talked about through the 70s, right? talked about through the 70s, right? talked about through the 70s, right? There was an average of more than one There was an average of more than one There was an average of more than one death a year in Yep. Formula 1 out of a death a year in Yep. Formula 1 out of a death a year in Yep. Formula 1 out of a field of only like 20 drivers. So yeah, field of only like 20 drivers. So yeah, field of only like 20 drivers. So yeah, that's the reality for a very long time that's the reality for a very long time that's the reality for a very long time in this business. And paradoxically, in this business. And paradoxically, in this business. And paradoxically, that's also part of the appeal. So in that's also part of the appeal. So in that's also part of the appeal. So in 1924, Enzo makes the decision to quit 1924, Enzo makes the decision to quit 1924, Enzo makes the decision to quit racing, cast off the coach building racing, cast off the coach building racing, cast off the coach building business, and instead open a Alfa Romeo business, and instead open a Alfa Romeo business, and instead open a Alfa Romeo dealership in Madna. dealership in Madna. dealership in Madna. >> Oh, I didn't know this. >> Oh, I didn't know this. >> Oh, I didn't know this. >> Yeah. He's now married. He wants to have >> Yeah. He's now married. He wants to have >> Yeah. He's now married. He wants to have a family. His son, naturally named Dino, a family. His son, naturally named Dino, a family. His son, naturally named Dino, would be born a few years later. Dino would be born a few years later. Dino would be born a few years later. Dino after his father and brother. Basically, after his father and brother. Basically, after his father and brother. Basically, he's going down the timehonored path of he's going down the timehonored path of he's going down the timehonored path of retired exathlete with some degree of retired exathlete with some degree of retired exathlete with some degree of notoriety opens local car dealership. notoriety opens local car dealership. notoriety opens local car dealership. >> Pioneering. >> Pioneering. >> Pioneering. >> Pioneering. Now, toward the end of his >> Pioneering. Now, toward the end of his >> Pioneering. Now, toward the end of his racing career, Enzo had also gotten more racing career, Enzo had also gotten more racing career, Enzo had also gotten more involved in the actual management of the involved in the actual management of the involved in the actual management of the team and gotten to know some of the team and gotten to know some of the team and gotten to know some of the managers of Alfa Romeo, the company managers of Alfa Romeo, the company managers of Alfa Romeo, the company itself. So, he still has these close itself. So, he still has these close itself. So, he still has these close connections to the company which are connections to the company which are connections to the company which are certainly going to help him in becoming certainly going to help him in becoming certainly going to help him in becoming a dealer. And then the very next year, a dealer. And then the very next year, a dealer. And then the very next year, the Alfa Romeo board of directors makes the Alfa Romeo board of directors makes the Alfa Romeo board of directors makes the inexplicable decision to drastically the inexplicable decision to drastically the inexplicable decision to drastically cut back on their racing activities, and cut back on their racing activities, and cut back on their racing activities, and they're going to keep the company team, they're going to keep the company team, they're going to keep the company team, but only going to enter a few races, and but only going to enter a few races, and but only going to enter a few races, and the budget is going to be cut. And so, the budget is going to be cut. And so, the budget is going to be cut. And so, Enzo's like, "Whoa, whoa, whoa, whoa, Enzo's like, "Whoa, whoa, whoa, whoa, Enzo's like, "Whoa, whoa, whoa, whoa, whoa, whoa, whoa. Hang on a sec here. I whoa, whoa, whoa. Hang on a sec here. I whoa, whoa, whoa. Hang on a sec here. I need the publicity from the Alfa Romeo need the publicity from the Alfa Romeo need the publicity from the Alfa Romeo racing team. That's my only like racing team. That's my only like racing team. That's my only like connection to fame here and why people connection to fame here and why people connection to fame here and why people would come to my dealership and buy my would come to my dealership and buy my would come to my dealership and buy my cars. Uh I I kind of need to have Alphas cars. Uh I I kind of need to have Alphas cars. Uh I I kind of need to have Alphas racing on a regular basis. So he goes to racing on a regular basis. So he goes to racing on a regular basis. So he goes to Alfa Romeo headquarters in Milan with a Alfa Romeo headquarters in Milan with a Alfa Romeo headquarters in Milan with a proposal. I understand that you want to proposal. I understand that you want to proposal. I understand that you want to cut the expense, you know, sort of cut the expense, you know, sort of cut the expense, you know, sort of day-to-day of running your own racing day-to-day of running your own racing day-to-day of running your own racing team. What if I take it over and all the team. What if I take it over and all the team. What if I take it over and all the races that you don't want to run, you races that you don't want to run, you races that you don't want to run, you bless me, your dealer, Enzo Ferrari, as bless me, your dealer, Enzo Ferrari, as bless me, your dealer, Enzo Ferrari, as the official racing agent of Alfa Romeo, the official racing agent of Alfa Romeo, the official racing agent of Alfa Romeo, and I'll put together my own private and I'll put together my own private and I'll put together my own private team. I'll hire the drivers. I'll hire team. I'll hire the drivers. I'll hire team. I'll hire the drivers. I'll hire the mechanics. I'll cover the costs, the mechanics. I'll cover the costs, the mechanics. I'll cover the costs, >> right? It's like a fully outsourced >> right? It's like a fully outsourced >> right? It's like a fully outsourced racing team that's just kind of a racing team that's just kind of a racing team that's just kind of a contract relationship. You don't have to contract relationship. You don't have to contract relationship. You don't have to have this on your books. This is sort of have this on your books. This is sort of have this on your books. This is sort of loose affiliation. And Forenzo, what loose affiliation. And Forenzo, what loose affiliation. And Forenzo, what better marketing activity could you better marketing activity could you better marketing activity could you imagine than to become the quasi imagine than to become the quasi imagine than to become the quasi official racing agent sort of second official racing agent sort of second official racing agent sort of second team of Alfa Romeo? team of Alfa Romeo? team of Alfa Romeo? >> Yep. >> Yep. >> Yep. >> And thus the first iteration of the >> And thus the first iteration of the >> And thus the first iteration of the Ferrari business is born, the Scooteria Ferrari business is born, the Scooteria Ferrari business is born, the Scooteria Ferrari, which is the name that he gives Ferrari, which is the name that he gives Ferrari, which is the name that he gives to his new racing team. Scooteria being to his new racing team. Scooteria being to his new racing team. Scooteria being stables in Italy. It's a stable of stables in Italy. It's a stable of stables in Italy. It's a stable of drivers and cars for Alfa Romeo. And the drivers and cars for Alfa Romeo. And the drivers and cars for Alfa Romeo. And the Ferrari racing team to this very day in Ferrari racing team to this very day in Ferrari racing team to this very day in Formula 1 and elsewhere is the Scooteria Formula 1 and elsewhere is the Scooteria Formula 1 and elsewhere is the Scooteria Ferrari. That is the SF that you see on Ferrari. That is the SF that you see on Ferrari. That is the SF that you see on the Ferrari Shield everywhere. the Ferrari Shield everywhere. the Ferrari Shield everywhere. >> Yep. And for a team that would go on to >> Yep. And for a team that would go on to >> Yep. And for a team that would go on to adopt the prancing horse, I I am loving adopt the prancing horse, I I am loving adopt the prancing horse, I I am loving the thick metaphor here with the stable the thick metaphor here with the stable the thick metaphor here with the stable and the and the and the >> Oh, Enzo, as we shall see, is a >> Oh, Enzo, as we shall see, is a >> Oh, Enzo, as we shall see, is a natural-born marketer. So, important to natural-born marketer. So, important to natural-born marketer. So, important to note a couple things here. The Scooteria note a couple things here. The Scooteria note a couple things here. The Scooteria Ferrari is very much intended to be a Ferrari is very much intended to be a Ferrari is very much intended to be a junior partner to Alfa Romeo, or at junior partner to Alfa Romeo, or at junior partner to Alfa Romeo, or at least Alpha intends it that way, but least Alpha intends it that way, but least Alpha intends it that way, but Enzo does in the back of his mind have Enzo does in the back of his mind have Enzo does in the back of his mind have broader ambitions. As we alluded to with broader ambitions. As we alluded to with broader ambitions. As we alluded to with the whole coach building thing, unless the whole coach building thing, unless the whole coach building thing, unless you're one of the few, you know, new at you're one of the few, you know, new at you're one of the few, you know, new at this point really mass assembly line this point really mass assembly line this point really mass assembly line consumer car companies like Fiat or like consumer car companies like Fiat or like consumer car companies like Fiat or like the Ford Motor Company over in America. the Ford Motor Company over in America. the Ford Motor Company over in America. the line and the barrier to entry the line and the barrier to entry the line and the barrier to entry between being a like uh garage who between being a like uh garage who between being a like uh garage who develops and maintains racing cars and develops and maintains racing cars and develops and maintains racing cars and graduating to making your own cars that graduating to making your own cars that graduating to making your own cars that you sell to the privateeers who go you sell to the privateeers who go you sell to the privateeers who go racing is pretty thin and Enzo's racing is pretty thin and Enzo's racing is pretty thin and Enzo's always got this in the back of his mind always got this in the back of his mind always got this in the back of his mind and he's got some examples out there. and he's got some examples out there. and he's got some examples out there. So, there are other garages, for lack of So, there are other garages, for lack of So, there are other garages, for lack of a better word, out there in Italy at the a better word, out there in Italy at the a better word, out there in Italy at the time that have made the jump from time that have made the jump from time that have made the jump from developing race car versions of other developing race car versions of other developing race car versions of other cars made by other manufacturers to cars made by other manufacturers to cars made by other manufacturers to selling their own cars. The prime selling their own cars. The prime selling their own cars. The prime example being Maserati right there in example being Maserati right there in example being Maserati right there in Modna, right across town, the Maserati Modna, right across town, the Maserati Modna, right across town, the Maserati brothers. brothers. brothers. >> In the video game world, this is u >> In the video game world, this is u >> In the video game world, this is u modding. You're sort of taking someone's modding. You're sort of taking someone's modding. You're sort of taking someone's kind of basic game and souping it up kind of basic game and souping it up kind of basic game and souping it up into something really special for you into something really special for you into something really special for you that you're customizing. that you're customizing. that you're customizing. >> Yep. So Fenzo in the back of his mind, >> Yep. So Fenzo in the back of his mind, >> Yep. So Fenzo in the back of his mind, he's like, "Okay, this is my opportunity he's like, "Okay, this is my opportunity he's like, "Okay, this is my opportunity to build my own team, hire my own to build my own team, hire my own to build my own team, hire my own engineers and mechanics, use hopefully engineers and mechanics, use hopefully engineers and mechanics, use hopefully my team's success combined with the my team's success combined with the my team's success combined with the Scooteria Ferrari brand that I'm Scooteria Ferrari brand that I'm Scooteria Ferrari brand that I'm building, maybe someday I too can launch building, maybe someday I too can launch building, maybe someday I too can launch my full-on car company like the Maserati my full-on car company like the Maserati my full-on car company like the Maserati brothers across town." brothers across town." brothers across town." >> So as he gets going with this >> So as he gets going with this >> So as he gets going with this grandmaster plan and, you know, grandmaster plan and, you know, grandmaster plan and, you know, developing the Scooteria, he knows that developing the Scooteria, he knows that developing the Scooteria, he knows that he needs to build up more than just his he needs to build up more than just his he needs to build up more than just his own operations. He also does need to own operations. He also does need to own operations. He also does need to build a brand if he's going to sell his build a brand if he's going to sell his build a brand if he's going to sell his own cars someday. And specifically, he own cars someday. And specifically, he own cars someday. And specifically, he needs a logo, and he's got the perfect needs a logo, and he's got the perfect needs a logo, and he's got the perfect one. But before we tell the story of the one. But before we tell the story of the one. But before we tell the story of the legend of the Ferrari prancing horse, legend of the Ferrari prancing horse, legend of the Ferrari prancing horse, now is a great time to thank our now is a great time to thank our now is a great time to thank our presenting partner, JP Morgan Payments. presenting partner, JP Morgan Payments. presenting partner, JP Morgan Payments. >> Yes. And one thing that kept coming up >> Yes. And one thing that kept coming up >> Yes. And one thing that kept coming up listeners in our research for Ferrari is listeners in our research for Ferrari is listeners in our research for Ferrari is just how global they have been from just how global they have been from just how global they have been from their early days. Of course their early days. Of course their early days. Of course headquartered in Italy but selling cars headquartered in Italy but selling cars headquartered in Italy but selling cars to the US and around the world as we to the US and around the world as we to the US and around the world as we will soon get to from those early days. will soon get to from those early days. will soon get to from those early days. And behind any company operating at that And behind any company operating at that And behind any company operating at that scale, there is a massive engine scale, there is a massive engine scale, there is a massive engine orchestrating money movement behind the orchestrating money movement behind the orchestrating money movement behind the scenes. scenes. scenes. >> That's right. It's an enormous amount of >> That's right. It's an enormous amount of >> That's right. It's an enormous amount of complexity. paying suppliers in one complexity. paying suppliers in one complexity. paying suppliers in one currency, collecting receivables in currency, collecting receivables in currency, collecting receivables in another, managing exchange risk, adding another, managing exchange risk, adding another, managing exchange risk, adding vendors and suppliers, and of course, vendors and suppliers, and of course, vendors and suppliers, and of course, staying compliant in all these regions. staying compliant in all these regions. staying compliant in all these regions. When you're really early stage, moving When you're really early stage, moving When you're really early stage, moving money across two or three currencies, money across two or three currencies, money across two or three currencies, you can manage it yourself. But going you can manage it yourself. But going you can manage it yourself. But going from 3 to 20 is like a completely from 3 to 20 is like a completely from 3 to 20 is like a completely different situation. different situation. different situation. >> Yes. And the companies that get this >> Yes. And the companies that get this >> Yes. And the companies that get this right, that make those strategic right, that make those strategic right, that make those strategic investments in payments infrastructure investments in payments infrastructure investments in payments infrastructure early, those are the ones that scale. early, those are the ones that scale. early, those are the ones that scale. That's what JP Morgan Payments That's what JP Morgan Payments That's what JP Morgan Payments crosscurrency solutions are built for. crosscurrency solutions are built for. crosscurrency solutions are built for. They send payments in 120 currencies. They send payments in 120 currencies. They send payments in 120 currencies. They receive payments in 40 across more They receive payments in 40 across more They receive payments in 40 across more than 200 countries and territories. That than 200 countries and territories. That than 200 countries and territories. That means that you get seamless integration means that you get seamless integration means that you get seamless integration through their APIs that plug directly through their APIs that plug directly through their APIs that plug directly into your existing Treasury workflow. into your existing Treasury workflow. into your existing Treasury workflow. And that gives you real-time visibility And that gives you real-time visibility And that gives you real-time visibility and control over your transactions. The and control over your transactions. The and control over your transactions. The whole goal is to make global money whole goal is to make global money whole goal is to make global money movement invisible. And because there's movement invisible. And because there's movement invisible. And because there's so much complexity required behind the so much complexity required behind the so much complexity required behind the scenes to make it feel invisible, the scenes to make it feel invisible, the scenes to make it feel invisible, the stability and scale of JP Morgan's stability and scale of JP Morgan's stability and scale of JP Morgan's global payments network plus local global payments network plus local global payments network plus local market infrastructure is really what market infrastructure is really what market infrastructure is really what makes it possible. It is one of those makes it possible. It is one of those makes it possible. It is one of those things where the scale is the product. things where the scale is the product. things where the scale is the product. If you do the math, there are tens of If you do the math, there are tens of If you do the math, there are tens of thousands of combinations of currencies thousands of combinations of currencies thousands of combinations of currencies that you may need to switch in between, that you may need to switch in between, that you may need to switch in between, not something you want to take on not something you want to take on not something you want to take on yourselves. So listeners, if your yourselves. So listeners, if your yourselves. So listeners, if your business is moving money across borders business is moving money across borders business is moving money across borders and you need crosscurrency payment and you need crosscurrency payment and you need crosscurrency payment solutions that do the hard work for you, solutions that do the hard work for you, solutions that do the hard work for you, check out jpmorggan.com/acquired check out jpmorggan.com/acquired check out jpmorggan.com/acquired and just tell them that Ben and David and just tell them that Ben and David and just tell them that Ben and David sent you. Okay, David. So where does the sent you. Okay, David. So where does the sent you. Okay, David. So where does the famous infamous prancing horse for famous infamous prancing horse for famous infamous prancing horse for Scooteria Ferrari come from? Scooteria Ferrari come from? Scooteria Ferrari come from? >> Yeah. How did all those Ferraris come to >> Yeah. How did all those Ferraris come to >> Yeah. How did all those Ferraris come to have a black prancing horse on them? And have a black prancing horse on them? And have a black prancing horse on them? And I gotta say, it is the strangest thing I gotta say, it is the strangest thing I gotta say, it is the strangest thing looking at some of these old pictures looking at some of these old pictures looking at some of these old pictures because the first thing that the because the first thing that the because the first thing that the prancing horse went on was these Alfa prancing horse went on was these Alfa prancing horse went on was these Alfa Romeo cars. And so there's these old Romeo cars. And so there's these old Romeo cars. And so there's these old pictures of a Alfa Romeo badged car in pictures of a Alfa Romeo badged car in pictures of a Alfa Romeo badged car in the fender sort of in front of the door the fender sort of in front of the door the fender sort of in front of the door there's a Scooteria Ferrari prancing there's a Scooteria Ferrari prancing there's a Scooteria Ferrari prancing horse. horse. horse. >> Yes. It's bizarre to look at today. >> Yes. It's bizarre to look at today. >> Yes. It's bizarre to look at today. >> Yeah. Listeners, we'll we'll send that >> Yeah. Listeners, we'll we'll send that >> Yeah. Listeners, we'll we'll send that out in the email. So, back when Enzo was out in the email. So, back when Enzo was out in the email. So, back when Enzo was a promising young racing driver, one of a promising young racing driver, one of a promising young racing driver, one of his early fans and supporters was a his early fans and supporters was a his early fans and supporters was a noble Italian count and countess whose noble Italian count and countess whose noble Italian count and countess whose son Francesco Baraka had been Italy's son Francesco Baraka had been Italy's son Francesco Baraka had been Italy's number one ace fighter pilot during number one ace fighter pilot during number one ace fighter pilot during World War I, like World War I fighting. World War I, like World War I fighting. World War I, like World War I fighting. And Baraka had won 34 And Baraka had won 34 And Baraka had won 34 aerial victories before he was aerial victories before he was aerial victories before he was tragically, you know, killed in combat tragically, you know, killed in combat tragically, you know, killed in combat right before the end of the war. right before the end of the war. right before the end of the war. >> And on his airplane, he had painted as >> And on his airplane, he had painted as >> And on his airplane, he had painted as his symbol and a good luck charm the his symbol and a good luck charm the his symbol and a good luck charm the black prancing horse. Now, he's like a black prancing horse. Now, he's like a black prancing horse. Now, he's like a national hero. And everybody in Italy national hero. And everybody in Italy national hero. And everybody in Italy knows about Count Baraka and his knows about Count Baraka and his knows about Count Baraka and his exploits during World War I. and his exploits during World War I. and his exploits during World War I. and his parents are fans of Enzo. And so one parents are fans of Enzo. And so one parents are fans of Enzo. And so one night after the war, the countess tells night after the war, the countess tells night after the war, the countess tells Enzo, "Why don't you paint the black Enzo, "Why don't you paint the black Enzo, "Why don't you paint the black horse on your car? It will bring you horse on your car? It will bring you horse on your car? It will bring you luck." And to symbolize this gift, she luck." And to symbolize this gift, she luck." And to symbolize this gift, she gives Enzo a photo of her son in front gives Enzo a photo of her son in front gives Enzo a photo of her son in front of his plane before he was killed with of his plane before he was killed with of his plane before he was killed with the horse and with an inscription from the horse and with an inscription from the horse and with an inscription from her below it that Enzo should use this her below it that Enzo should use this her below it that Enzo should use this symbol. symbol. symbol. >> That's a official endorsement right >> That's a official endorsement right >> That's a official endorsement right there. there. there. >> Yeah, absolutely. Oh, absolutely. So, >> Yeah, absolutely. Oh, absolutely. So, >> Yeah, absolutely. Oh, absolutely. So, here we are now. Enzo is launching his here we are now. Enzo is launching his here we are now. Enzo is launching his his scooteria, his stables, you know, his scooteria, his stables, you know, his scooteria, his stables, you know, his horses, and he knows that this is his horses, and he knows that this is his horses, and he knows that this is the moment to put the gift to use as the the moment to put the gift to use as the the moment to put the gift to use as the Scooteria's logo. It's perfect, stable, Scooteria's logo. It's perfect, stable, Scooteria's logo. It's perfect, stable, horses. But it's more than that. This horses. But it's more than that. This horses. But it's more than that. This man had been a national hero. Everybody man had been a national hero. Everybody man had been a national hero. Everybody in Italy knows him and knows the symbol. in Italy knows him and knows the symbol. in Italy knows him and knows the symbol. And Enzo has had it bestowed upon him, And Enzo has had it bestowed upon him, And Enzo has had it bestowed upon him, not just with, you know, his mother's not just with, you know, his mother's not just with, you know, his mother's blessing, but with the explicit blessing, but with the explicit blessing, but with the explicit direction to put it on his race car. So direction to put it on his race car. So direction to put it on his race car. So Enzo takes the prancing horse. He places Enzo takes the prancing horse. He places Enzo takes the prancing horse. He places it within a yellow shield. Yellow being it within a yellow shield. Yellow being it within a yellow shield. Yellow being the city color of Modna with the three the city color of Modna with the three the city color of Modna with the three colors of the Italian flag above. This colors of the Italian flag above. This colors of the Italian flag above. This is just a genius marketing move. The is just a genius marketing move. The is just a genius marketing move. The prancing horse reflects both the prancing horse reflects both the prancing horse reflects both the scooteria and links Enzo and the team to scooteria and links Enzo and the team to scooteria and links Enzo and the team to this national hero. The shield reflects this national hero. The shield reflects this national hero. The shield reflects his intention to do battle on the his intention to do battle on the his intention to do battle on the racetrack. And the Italian colors racetrack. And the Italian colors racetrack. And the Italian colors reflect the ultimate ambition to reflect the ultimate ambition to reflect the ultimate ambition to establish this team, this company and establish this team, this company and establish this team, this company and its future cars as the Italian national its future cars as the Italian national its future cars as the Italian national team and sports car company. team and sports car company. team and sports car company. >> Yep. >> Yep. >> Yep. >> So in our research, I spoke to Luca >> So in our research, I spoke to Luca >> So in our research, I spoke to Luca Deonteo, the legendary Ferrari chairman Deonteo, the legendary Ferrari chairman Deonteo, the legendary Ferrari chairman who would ultimately succeed Enzo and who would ultimately succeed Enzo and who would ultimately succeed Enzo and really in many ways be his heir as we really in many ways be his heir as we really in many ways be his heir as we will tell in this story. Important to will tell in this story. Important to will tell in this story. Important to note, different Luca than the Luca who note, different Luca than the Luca who note, different Luca than the Luca who wrote the book, David, that most of this wrote the book, David, that most of this wrote the book, David, that most of this narrative is based on. narrative is based on. narrative is based on. >> Yes. And I asked Montealo, you know, you >> Yes. And I asked Montealo, you know, you >> Yes. And I asked Montealo, you know, you knew Enzo probably as deeply and as well knew Enzo probably as deeply and as well knew Enzo probably as deeply and as well as just about anybody who's still alive as just about anybody who's still alive as just about anybody who's still alive today. And there's this kind of popular today. And there's this kind of popular today. And there's this kind of popular legend that Enzo was just a racer. He legend that Enzo was just a racer. He legend that Enzo was just a racer. He only wanted to race. He didn't really only wanted to race. He didn't really only wanted to race. He didn't really care about business or road cars. And care about business or road cars. And care about business or road cars. And all the road cars only existed to fund all the road cars only existed to fund all the road cars only existed to fund his racing activities. Oh, this is the his racing activities. Oh, this is the his racing activities. Oh, this is the biggest thing about people today. When I biggest thing about people today. When I biggest thing about people today. When I say, "Oh, we're doing an episode on say, "Oh, we're doing an episode on say, "Oh, we're doing an episode on Ferrari." They say, "Oh my gosh, yeah, Ferrari." They say, "Oh my gosh, yeah, Ferrari." They say, "Oh my gosh, yeah, it's such a crazy story cuz, you know, it's such a crazy story cuz, you know, it's such a crazy story cuz, you know, Enzo really just wanted to race cars and Enzo really just wanted to race cars and Enzo really just wanted to race cars and he built this car company, but really he built this car company, but really he built this car company, but really that was just sort of to finance the that was just sort of to finance the that was just sort of to finance the racing and he doesn't even care about racing and he doesn't even care about racing and he doesn't even care about those road cars. He's not really a those road cars. He's not really a those road cars. He's not really a business guy. He just wants to make business guy. He just wants to make business guy. He just wants to make great cars with great engines and and great cars with great engines and and great cars with great engines and and send them racing." send them racing." send them racing." >> Completely false. >> Completely false. >> Completely false. Monteze confirmed when I asked him, Enzo Monteze confirmed when I asked him, Enzo Monteze confirmed when I asked him, Enzo was a naturalb born entrepreneur and was a naturalb born entrepreneur and was a naturalb born entrepreneur and marketer. He he really was Italy's Steve marketer. He he really was Italy's Steve marketer. He he really was Italy's Steve Jobs in every aspect. I mean, think Jobs in every aspect. I mean, think Jobs in every aspect. I mean, think about it. What was Steve Jobs? Steve about it. What was Steve Jobs? Steve about it. What was Steve Jobs? Steve Jobs was was not an engineer. He was a Jobs was was not an engineer. He was a Jobs was was not an engineer. He was a marketer. The same as Enzo. Enzo is not marketer. The same as Enzo. Enzo is not marketer. The same as Enzo. Enzo is not an engineer. He's not a car mechanic. He an engineer. He's not a car mechanic. He an engineer. He's not a car mechanic. He can't build the cars himself. But they can't build the cars himself. But they can't build the cars himself. But they both had a sort of understanding and both had a sort of understanding and both had a sort of understanding and deep appreciation for the technical deep appreciation for the technical deep appreciation for the technical things that enabled their visions to be things that enabled their visions to be things that enabled their visions to be possible. possible. possible. >> Yes. Enzo would say about himself when >> Yes. Enzo would say about himself when >> Yes. Enzo would say about himself when asked that, you know, he's not an asked that, you know, he's not an asked that, you know, he's not an engineer, he's not a car designer, he's engineer, he's not a car designer, he's engineer, he's not a car designer, he's no longer a driver, even though he runs no longer a driver, even though he runs no longer a driver, even though he runs this team, he is quote an agitator of this team, he is quote an agitator of this team, he is quote an agitator of men. And that perfectly described Enzo men. And that perfectly described Enzo men. And that perfectly described Enzo and I think, you know, perfectly and I think, you know, perfectly and I think, you know, perfectly describes Steve Jobs, too. describes Steve Jobs, too. describes Steve Jobs, too. >> Yep. So if you think about it, what is >> Yep. So if you think about it, what is >> Yep. So if you think about it, what is Enzo doing here with the brand that he's Enzo doing here with the brand that he's Enzo doing here with the brand that he's building? There's the prancing horse and building? There's the prancing horse and building? There's the prancing horse and then what's the other famous, you know, then what's the other famous, you know, then what's the other famous, you know, visual symbol associated with Ferrari? visual symbol associated with Ferrari? visual symbol associated with Ferrari? The red Ferrari red Roso Corsa that he The red Ferrari red Roso Corsa that he The red Ferrari red Roso Corsa that he adopts here. And sure, you know, adopts here. And sure, you know, adopts here. And sure, you know, Ferraris are red because red was the Ferraris are red because red was the Ferraris are red because red was the assigned national racing color of Italy. assigned national racing color of Italy. assigned national racing color of Italy. But come on, Enzo is the one who But come on, Enzo is the one who But come on, Enzo is the one who embraced it and imbued this Rasa Corso embraced it and imbued this Rasa Corso embraced it and imbued this Rasa Corso with so much more than just the national with so much more than just the national with so much more than just the national racing color of Italy. It's not Alfa racing color of Italy. It's not Alfa racing color of Italy. It's not Alfa Romeo's colors. It's Ferrari's colors. Romeo's colors. It's Ferrari's colors. Romeo's colors. It's Ferrari's colors. >> Right. When you draw a picture of a race >> Right. When you draw a picture of a race >> Right. When you draw a picture of a race car today, let's say you're 10 years car today, let's say you're 10 years car today, let's say you're 10 years old, you're coloring it red. And you're old, you're coloring it red. And you're old, you're coloring it red. And you're coloring it red because that is Ferrari coloring it red because that is Ferrari coloring it red because that is Ferrari red. red. red. >> Yes. And what does red represent? It's >> Yes. And what does red represent? It's >> Yes. And what does red represent? It's passion. It's blood. It's desire. It's passion. It's blood. It's desire. It's passion. It's blood. It's desire. It's all of this that is all deeply wrapped all of this that is all deeply wrapped all of this that is all deeply wrapped up into a Ferrari. I mean, just look at up into a Ferrari. I mean, just look at up into a Ferrari. I mean, just look at Italy's other luxury supercar company Italy's other luxury supercar company Italy's other luxury supercar company today, Lamborghini. You know what their today, Lamborghini. You know what their today, Lamborghini. You know what their colors are? Not red. colors are? Not red. colors are? Not red. In fact, their color is every color but In fact, their color is every color but In fact, their color is every color but red red red because Ferrari has co-opted it. because Ferrari has co-opted it. because Ferrari has co-opted it. >> Yeah. >> Yeah. >> Yeah. >> So, back to the scooter here. After a >> So, back to the scooter here. After a >> So, back to the scooter here. After a couple years, in 1933, the golden couple years, in 1933, the golden couple years, in 1933, the golden opportunity arrives for Enzo. Alfa Romeo opportunity arrives for Enzo. Alfa Romeo opportunity arrives for Enzo. Alfa Romeo finally decides that it is going to finally decides that it is going to finally decides that it is going to disband its official racing team disband its official racing team disband its official racing team entirely and designate Scooteria Ferrari entirely and designate Scooteria Ferrari entirely and designate Scooteria Ferrari as its official racing operation in all as its official racing operation in all as its official racing operation in all races all across the globe. So Enzo races all across the globe. So Enzo races all across the globe. So Enzo acquires quote unquote the entire Alpha acquires quote unquote the entire Alpha acquires quote unquote the entire Alpha operation, engineers, mechanics, operation, engineers, mechanics, operation, engineers, mechanics, everything. And his dream has come true. everything. And his dream has come true. everything. And his dream has come true. He is not only Alfa Romeo's official He is not only Alfa Romeo's official He is not only Alfa Romeo's official racing team, but by this point in time, racing team, but by this point in time, racing team, but by this point in time, Alpha had been nationalized by the Alpha had been nationalized by the Alpha had been nationalized by the fascist Italian state by Mussolini. fascist Italian state by Mussolini. fascist Italian state by Mussolini. >> So he is Italy's official national >> So he is Italy's official national >> So he is Italy's official national racing team. There's just one problem, racing team. There's just one problem, racing team. There's just one problem, though. which is that Alpha got out of though. which is that Alpha got out of though. which is that Alpha got out of the racing business for a reason because the racing business for a reason because the racing business for a reason because Hitler is coming to power in Germany and Hitler is coming to power in Germany and Hitler is coming to power in Germany and one of Hitler's most you know kind of one of Hitler's most you know kind of one of Hitler's most you know kind of important national agenda items is important national agenda items is important national agenda items is making sure that his German auto making sure that his German auto making sure that his German auto industry is the best and that he proves industry is the best and that he proves industry is the best and that he proves it on the racetrack just like you know it on the racetrack just like you know it on the racetrack just like you know the Olympics. So throughout the rest of the Olympics. So throughout the rest of the Olympics. So throughout the rest of the 1930s, the German state is the 1930s, the German state is the 1930s, the German state is supporting Mercedes and Auto Union, supporting Mercedes and Auto Union, supporting Mercedes and Auto Union, which would go on to become Audi today, which would go on to become Audi today, which would go on to become Audi today, and their cars are just dominating and their cars are just dominating and their cars are just dominating European Grand Prix racing. So Enzo and European Grand Prix racing. So Enzo and European Grand Prix racing. So Enzo and Ferrari are like sent out there, you Ferrari are like sent out there, you Ferrari are like sent out there, you know, by Alpha and the Italians to know, by Alpha and the Italians to know, by Alpha and the Italians to compete, but it's a fool's errand. Mhm. compete, but it's a fool's errand. Mhm. compete, but it's a fool's errand. Mhm. >> And so in 1938, >> And so in 1938, >> And so in 1938, Alfa and Mussolini kind of, you know, Alfa and Mussolini kind of, you know, Alfa and Mussolini kind of, you know, fed up with losing, they actually fed up with losing, they actually fed up with losing, they actually acquire the Scooteria Ferrari and remake acquire the Scooteria Ferrari and remake acquire the Scooteria Ferrari and remake it, you know, as part of Alfa Romeo into it, you know, as part of Alfa Romeo into it, you know, as part of Alfa Romeo into this official sort of government entity. this official sort of government entity. this official sort of government entity. >> Huh. So they decide actually we do want >> Huh. So they decide actually we do want >> Huh. So they decide actually we do want to put resources behind this and now to put resources behind this and now to put resources behind this and now you're kind of the only game left in you're kind of the only game left in you're kind of the only game left in town since we shut down the other town since we shut down the other town since we shut down the other operations. operations. operations. >> Yeah. I mean, at the end of the day, >> Yeah. I mean, at the end of the day, >> Yeah. I mean, at the end of the day, this is just rearranging deck chairs this is just rearranging deck chairs this is just rearranging deck chairs because the the war is coming. So the because the the war is coming. So the because the the war is coming. So the very next year, Hitler invades Poland very next year, Hitler invades Poland very next year, Hitler invades Poland and World War II begins. Needless to and World War II begins. Needless to and World War II begins. Needless to say, European automobile racing is uh on say, European automobile racing is uh on say, European automobile racing is uh on hold indefinitely. hold indefinitely. hold indefinitely. >> Yes. During this period, Enzo gets into >> Yes. During this period, Enzo gets into >> Yes. During this period, Enzo gets into a fight with Alfa Romeo management and a fight with Alfa Romeo management and a fight with Alfa Romeo management and manages to get himself fired. manages to get himself fired. manages to get himself fired. >> Yeah. This is 1939. >> Yeah. This is 1939. >> Yeah. This is 1939. He cares about one thing and that's auto He cares about one thing and that's auto He cares about one thing and that's auto racing. It's just not the strategic racing. It's just not the strategic racing. It's just not the strategic priority for Alfa Romeo as a company or priority for Alfa Romeo as a company or priority for Alfa Romeo as a company or for the country. And so I think this for the country. And so I think this for the country. And so I think this this friction kind of leads to it. The this friction kind of leads to it. The this friction kind of leads to it. The crazy thing is his separation agreement, crazy thing is his separation agreement, crazy thing is his separation agreement, I I think he got paid to to leave, but I I think he got paid to to leave, but I I think he got paid to to leave, but yes, you know, he it's a firing, forbids yes, you know, he it's a firing, forbids yes, you know, he it's a firing, forbids him for four years from a building cars him for four years from a building cars him for four years from a building cars to race them and b using the name to race them and b using the name to race them and b using the name Ferrari associated with a racing team or Ferrari associated with a racing team or Ferrari associated with a racing team or a car builder. Like he he he lost the a car builder. Like he he he lost the a car builder. Like he he he lost the rights to his own name for four years. rights to his own name for four years. rights to his own name for four years. >> Well, I mean, you know, he gave them up >> Well, I mean, you know, he gave them up >> Well, I mean, you know, he gave them up to the Italian government essentially. to the Italian government essentially. to the Italian government essentially. Yep. So, speaking of which, during the Yep. So, speaking of which, during the Yep. So, speaking of which, during the war, Enzo creates a new company to feed war, Enzo creates a new company to feed war, Enzo creates a new company to feed the Italian war effort that he names the Italian war effort that he names the Italian war effort that he names Auto AIO Construction. Auto and Aviation Auto AIO Construction. Auto and Aviation Auto AIO Construction. Auto and Aviation Construction, which is, but he sneaks Construction, which is, but he sneaks Construction, which is, but he sneaks that auto in there cuz that auto in there cuz that auto in there cuz >> not really supposed to be building cars >> not really supposed to be building cars >> not really supposed to be building cars and racing them, but like I'm doing and racing them, but like I'm doing and racing them, but like I'm doing other stuff, too. Yeah. other stuff, too. Yeah. other stuff, too. Yeah. >> It's not called Ferrari. It's not called >> It's not called Ferrari. It's not called >> It's not called Ferrari. It's not called Ferrari, but this same company is better Ferrari, but this same company is better Ferrari, but this same company is better known today as Ferrari Socia per Azioni known today as Ferrari Socia per Azioni known today as Ferrari Socia per Azioni or Ferrari spa, the Ferrari joint stock or Ferrari spa, the Ferrari joint stock or Ferrari spa, the Ferrari joint stock company that is publicly traded on the company that is publicly traded on the company that is publicly traded on the New York Stock Exchange under the ticker New York Stock Exchange under the ticker New York Stock Exchange under the ticker race. race. race. >> Yes. Best stock ticker ever. >> Yes. Best stock ticker ever. >> Yes. Best stock ticker ever. >> Best stock ticker ever indeed. So, what >> Best stock ticker ever indeed. So, what >> Best stock ticker ever indeed. So, what is this company doing? They're they're is this company doing? They're they're is this company doing? They're they're not making cars even though auto is in not making cars even though auto is in not making cars even though auto is in the name. They're making machine tools the name. They're making machine tools the name. They're making machine tools in the workshops and the essentially in the workshops and the essentially in the workshops and the essentially factory that Enzo has created there in factory that Enzo has created there in factory that Enzo has created there in Madna. And on each tool throughout the Madna. And on each tool throughout the Madna. And on each tool throughout the war effort that they make, Enzo has them war effort that they make, Enzo has them war effort that they make, Enzo has them stamp the prancing horse and the word stamp the prancing horse and the word stamp the prancing horse and the word Scooteria Ferrari Madna. Clearly Scooteria Ferrari Madna. Clearly Scooteria Ferrari Madna. Clearly signaling his intentions after the war signaling his intentions after the war signaling his intentions after the war of uh you know what what he's going to of uh you know what what he's going to of uh you know what what he's going to do. do. do. >> I bet those are some very valuable >> I bet those are some very valuable >> I bet those are some very valuable collector's items if you can find them. collector's items if you can find them. collector's items if you can find them. So anyway, Enzo and his factory are So anyway, Enzo and his factory are So anyway, Enzo and his factory are pretty good at making these machine pretty good at making these machine pretty good at making these machine tools and they become part of the war tools and they become part of the war tools and they become part of the war effort. So as the war wears on and the effort. So as the war wears on and the effort. So as the war wears on and the allies, you know, push into Europe, Enzo allies, you know, push into Europe, Enzo allies, you know, push into Europe, Enzo and the government start to worry about and the government start to worry about and the government start to worry about them bombing the factory in Modna. So in them bombing the factory in Modna. So in them bombing the factory in Modna. So in 1943, he decides that he's going to move 1943, he decides that he's going to move 1943, he decides that he's going to move all of his operations out to a small all of his operations out to a small all of his operations out to a small little town in the countryside to avoid little town in the countryside to avoid little town in the countryside to avoid the bombing. He's going to go about 15 the bombing. He's going to go about 15 the bombing. He's going to go about 15 kilometers south of Mona to Marinelo. kilometers south of Mona to Marinelo. kilometers south of Mona to Marinelo. And that's why Ferrari to this very day And that's why Ferrari to this very day And that's why Ferrari to this very day is in the small little, you know, hamlet is in the small little, you know, hamlet is in the small little, you know, hamlet of Marinelo, not in the bigger city of of Marinelo, not in the bigger city of of Marinelo, not in the bigger city of Mona. Mona. Mona. >> Yep. >> Yep. >> Yep. >> So even despite the move to Marinelo, >> So even despite the move to Marinelo, >> So even despite the move to Marinelo, the factory does get bombed twice during the factory does get bombed twice during the factory does get bombed twice during the last days of the war. After the war, the last days of the war. After the war, the last days of the war. After the war, that leaves Enzo kind of at a that leaves Enzo kind of at a that leaves Enzo kind of at a crossroads. The factory is not quite in crossroads. The factory is not quite in crossroads. The factory is not quite in ruins, but it's in, you know, it's been ruins, but it's in, you know, it's been ruins, but it's in, you know, it's been bombed. bombed. bombed. >> Disarray. Disarray. Significant >> Disarray. Disarray. Significant >> Disarray. Disarray. Significant disarray. disarray. disarray. >> Disarray. And he's just spent the last >> Disarray. And he's just spent the last >> Disarray. And he's just spent the last four or five years building machine four or five years building machine four or five years building machine tools and gotten pretty good at it. tools and gotten pretty good at it. tools and gotten pretty good at it. >> Yep. And then Enzo gets a visit from an >> Yep. And then Enzo gets a visit from an >> Yep. And then Enzo gets a visit from an old racing pal. An Italian, but one who old racing pal. An Italian, but one who old racing pal. An Italian, but one who spent the war not in Europe, but in spent the war not in Europe, but in spent the war not in Europe, but in exile in America, exile in America, exile in America, Luigi Kennedy, the man who brings Luigi Kennedy, the man who brings Luigi Kennedy, the man who brings Ferrari to America. So Luigi and Enzo Ferrari to America. So Luigi and Enzo Ferrari to America. So Luigi and Enzo met way back when Enzo joined the Alfa met way back when Enzo joined the Alfa met way back when Enzo joined the Alfa Romeo racing team as a driver. And Luigi Romeo racing team as a driver. And Luigi Romeo racing team as a driver. And Luigi was a mechanic on the team who also then was a mechanic on the team who also then was a mechanic on the team who also then became a driver and he ends up in New became a driver and he ends up in New became a driver and he ends up in New York. And when the war is over, Luigi York. And when the war is over, Luigi York. And when the war is over, Luigi goes back to Italy to visit Enzo and he goes back to Italy to visit Enzo and he goes back to Italy to visit Enzo and he tells him about America. So this is a tells him about America. So this is a tells him about America. So this is a quote here from Brock Yates's biography quote here from Brock Yates's biography quote here from Brock Yates's biography of Enzo. Brock Yates was the longtime of Enzo. Brock Yates was the longtime of Enzo. Brock Yates was the longtime editor of Car and Driver magazine. editor of Car and Driver magazine. editor of Car and Driver magazine. Kennedy described the miracle that was Kennedy described the miracle that was Kennedy described the miracle that was America, the aggressiveness of its America, the aggressiveness of its America, the aggressiveness of its people, their childlike inquisitiveness, people, their childlike inquisitiveness, people, their childlike inquisitiveness, and their bourgeoa cuitities. Yet there and their bourgeoa cuitities. Yet there and their bourgeoa cuitities. Yet there was a rich upper class whose taste were was a rich upper class whose taste were was a rich upper class whose taste were European. He had seen them, met them, European. He had seen them, met them, European. He had seen them, met them, gained their trust as he kept their gained their trust as he kept their gained their trust as he kept their aging European automobiles operating aging European automobiles operating aging European automobiles operating through the war years. He knew they through the war years. He knew they through the war years. He knew they would pay a king's ransom for Enzo's would pay a king's ransom for Enzo's would pay a king's ransom for Enzo's elite machines. And he, Luigi Kennedy, elite machines. And he, Luigi Kennedy, elite machines. And he, Luigi Kennedy, meant to exploit that naive colonial meant to exploit that naive colonial meant to exploit that naive colonial lust. lust. lust. >> What writing? >> What writing? >> What writing? >> What writing? Enzo >> What writing? Enzo >> What writing? Enzo agrees. Now, legends would say later, agrees. Now, legends would say later, agrees. Now, legends would say later, and Luigi, I think, would probably and Luigi, I think, would probably and Luigi, I think, would probably perpetuate this himself, that Luigi is perpetuate this himself, that Luigi is perpetuate this himself, that Luigi is the one who convinced Enzo to abandon the one who convinced Enzo to abandon the one who convinced Enzo to abandon the machine tools business and focus the machine tools business and focus the machine tools business and focus only on cars again after World War II. only on cars again after World War II. only on cars again after World War II. That's false. Enzo was planning to That's false. Enzo was planning to That's false. Enzo was planning to anyway. There's There's no way that he anyway. There's There's no way that he anyway. There's There's no way that he really was going to go into machine really was going to go into machine really was going to go into machine tools. tools. tools. >> I mean, by 1943, his non-compete is up >> I mean, by 1943, his non-compete is up >> I mean, by 1943, his non-compete is up and he's allowed to use the name again. and he's allowed to use the name again. and he's allowed to use the name again. And so, you know, clock's ticking. And so, you know, clock's ticking. And so, you know, clock's ticking. >> The clock's ticking. But it is true. >> The clock's ticking. But it is true. >> The clock's ticking. But it is true. Luigi definitely convinced Enzo about Luigi definitely convinced Enzo about Luigi definitely convinced Enzo about America and America was critical for America and America was critical for America and America was critical for Ferrari. And you know what wealthy Ferrari. And you know what wealthy Ferrari. And you know what wealthy Americans are extremely interested in Americans are extremely interested in Americans are extremely interested in when they're considering if they're when they're considering if they're when they're considering if they're going to buy a extremely expensive rare going to buy a extremely expensive rare going to buy a extremely expensive rare automobile. They love that cold shoulder automobile. They love that cold shoulder automobile. They love that cold shoulder of a artist creating the car of a artist creating the car of a artist creating the car mysteriously in some small town in Italy mysteriously in some small town in Italy mysteriously in some small town in Italy who's just interested in racing. He's who's just interested in racing. He's who's just interested in racing. He's not interested in mass market cars. not interested in mass market cars. not interested in mass market cars. You're just lucky to get one of these You're just lucky to get one of these You're just lucky to get one of these racing cars and he couldn't even care racing cars and he couldn't even care racing cars and he couldn't even care less about you. less about you. less about you. >> Oh yeah. Oh yeah. >> Oh yeah. Oh yeah. >> Oh yeah. Oh yeah. >> That sells cars. >> That sells cars. >> That sells cars. >> And boy does Enzo know it. >> And boy does Enzo know it. >> And boy does Enzo know it. >> Yeah. He totally leans into this. This >> Yeah. He totally leans into this. This >> Yeah. He totally leans into this. This is like part of the perpetrating of the is like part of the perpetrating of the is like part of the perpetrating of the myth. This is why everybody believes, myth. This is why everybody believes, myth. This is why everybody believes, oh, he wasn't really a businessman. He oh, he wasn't really a businessman. He oh, he wasn't really a businessman. He just wanted to race cars. just wanted to race cars. just wanted to race cars. >> Yeah. I mean, oh, he the the whole >> Yeah. I mean, oh, he the the whole >> Yeah. I mean, oh, he the the whole persona of Enzo Ferrari, you know, the persona of Enzo Ferrari, you know, the persona of Enzo Ferrari, you know, the dark sunglasses. dark sunglasses. dark sunglasses. >> Oh, yeah. What's the tidbit you got on >> Oh, yeah. What's the tidbit you got on >> Oh, yeah. What's the tidbit you got on the sunglasses? the sunglasses? the sunglasses? >> It was an act. You know, we would wear >> It was an act. You know, we would wear >> It was an act. You know, we would wear the sunglasses in public and it, you the sunglasses in public and it, you the sunglasses in public and it, you know, press interviews and in meetings know, press interviews and in meetings know, press interviews and in meetings with clients or whomever and then with clients or whomever and then with clients or whomever and then everybody else would leave the room and everybody else would leave the room and everybody else would leave the room and he'd just take them off and put them on he'd just take them off and put them on he'd just take them off and put them on the table. He didn't wear sunglasses all the table. He didn't wear sunglasses all the table. He didn't wear sunglasses all the time, only when crafting his image. the time, only when crafting his image. the time, only when crafting his image. But, uh, yeah, he leaned into it. Yep. But, uh, yeah, he leaned into it. Yep. But, uh, yeah, he leaned into it. Yep. So, one way or another, machine tool So, one way or another, machine tool So, one way or another, machine tool business is out the window and Enzo is business is out the window and Enzo is business is out the window and Enzo is back in cars. 1947 is the first year back in cars. 1947 is the first year back in cars. 1947 is the first year that they get going with the newly that they get going with the newly that they get going with the newly renamed auto construction Ferrari now renamed auto construction Ferrari now renamed auto construction Ferrari now that he can use the Ferrari name. that he can use the Ferrari name. that he can use the Ferrari name. >> In 1947 they build three cars just for >> In 1947 they build three cars just for >> In 1947 they build three cars just for team racing just for the scooteria in team racing just for the scooteria in team racing just for the scooteria in which during the year they enter 14 which during the year they enter 14 which during the year they enter 14 races and win seven of them. pretty good races and win seven of them. pretty good races and win seven of them. pretty good 50% win rate for yeah you know they 50% win rate for yeah you know they 50% win rate for yeah you know they newly rebuilt Scooteria Ferrari they newly rebuilt Scooteria Ferrari they newly rebuilt Scooteria Ferrari they didn't sell any of those cars didn't sell any of those cars didn't sell any of those cars >> yes Enzo Ferrari to this point in >> yes Enzo Ferrari to this point in >> yes Enzo Ferrari to this point in history has not sold a car yet how old history has not sold a car yet how old history has not sold a car yet how old is he David is he David is he David >> he is in 1947 he's 49 years old >> he is in 1947 he's 49 years old >> he is in 1947 he's 49 years old >> I mean this is like this great classic >> I mean this is like this great classic >> I mean this is like this great classic sort of founder myth of the young hot sort of founder myth of the young hot sort of founder myth of the young hot shot who starts this thing Ferrari yes shot who starts this thing Ferrari yes shot who starts this thing Ferrari yes it's a racing team but it is a car it's a racing team but it is a car it's a racing team but it is a car company who sells cars to consumers and company who sells cars to consumers and company who sells cars to consumers and by age 49 Enzo had never done that. by age 49 Enzo had never done that. by age 49 Enzo had never done that. >> Yes. Now he has established the brand >> Yes. Now he has established the brand >> Yes. Now he has established the brand and the myth and put all the pieces in and the myth and put all the pieces in and the myth and put all the pieces in place to create Ferrari but yes he did place to create Ferrari but yes he did place to create Ferrari but yes he did not sell a single car to a customer not sell a single car to a customer not sell a single car to a customer until 1948 when they introduced the until 1948 when they introduced the until 1948 when they introduced the Ferrari 166 Betta at the Turin Motor Ferrari 166 Betta at the Turin Motor Ferrari 166 Betta at the Turin Motor Show. And Luca Delonte in his biography Show. And Luca Delonte in his biography Show. And Luca Delonte in his biography writes, "For Enzo Ferrari, the 166 MM writes, "For Enzo Ferrari, the 166 MM writes, "For Enzo Ferrari, the 166 MM Baretta was a declaration of intent, a Baretta was a declaration of intent, a Baretta was a declaration of intent, a sports car with a sensual shape, as fast sports car with a sensual shape, as fast sports car with a sensual shape, as fast and powerful as it was beautiful and and powerful as it was beautiful and and powerful as it was beautiful and elegant. It was the foundation on which elegant. It was the foundation on which elegant. It was the foundation on which from that moment on he would build every from that moment on he would build every from that moment on he would build every road model. cars capable of winning road model. cars capable of winning road model. cars capable of winning races on circuits and roads all over the races on circuits and roads all over the races on circuits and roads all over the world and at the same time being the world and at the same time being the world and at the same time being the protagonist of the most prestigious protagonist of the most prestigious protagonist of the most prestigious Concord deleg in the four corners of the Concord deleg in the four corners of the Concord deleg in the four corners of the earth. What a great description of what earth. What a great description of what earth. What a great description of what a Ferrari is. a Ferrari is. a Ferrari is. >> Absolutely. Enzo is really figuring out >> Absolutely. Enzo is really figuring out >> Absolutely. Enzo is really figuring out how to create desire here. how to create desire here. how to create desire here. >> Yes. Yes. These machines >> Yes. Yes. These machines >> Yes. Yes. These machines are beautiful are beautiful are beautiful and they are deadly. That is the point. and they are deadly. That is the point. and they are deadly. That is the point. You can enter them in a race. You can be You can enter them in a race. You can be You can enter them in a race. You can be competitive. You might even win as we competitive. You might even win as we competitive. You might even win as we see in a second. And you can drive them see in a second. And you can drive them see in a second. And you can drive them around town and look beautiful and around town and look beautiful and around town and look beautiful and elegant when they work. elegant when they work. elegant when they work. Yeah. The Ferraris in this era in Yeah. The Ferraris in this era in Yeah. The Ferraris in this era in history that we're talking about here, history that we're talking about here, history that we're talking about here, you know, the late 40s, 50s, 60s, these you know, the late 40s, 50s, 60s, these you know, the late 40s, 50s, 60s, these were not the most reliable machines, were not the most reliable machines, were not the most reliable machines, especially the road cars. I think you especially the road cars. I think you especially the road cars. I think you could also lump in the 70s and the 80s could also lump in the 70s and the 80s could also lump in the 70s and the 80s large chunk of the 90s. large chunk of the 90s. large chunk of the 90s. >> I mean there's this fascinating thing >> I mean there's this fascinating thing >> I mean there's this fascinating thing about luxury that reliability is not about luxury that reliability is not about luxury that reliability is not actually a relevant part of the equation actually a relevant part of the equation actually a relevant part of the equation of how desirable how much do I lust of how desirable how much do I lust of how desirable how much do I lust after this machine. after this machine. after this machine. >> I think it's from the luxury strategy >> I think it's from the luxury strategy >> I think it's from the luxury strategy book anti-law of marketing number book anti-law of marketing number book anti-law of marketing number something or other is ensure that your something or other is ensure that your something or other is ensure that your product has enough flaws. product has enough flaws. product has enough flaws. >> Yes, >> Yes, >> Yes, >> boy do Ferraris have a lot of flaws. >> boy do Ferraris have a lot of flaws. >> boy do Ferraris have a lot of flaws. >> Yep. So this first Ferrari, the 166 >> Yep. So this first Ferrari, the 166 >> Yep. So this first Ferrari, the 166 Bartetta, they produce about a dozen of Bartetta, they produce about a dozen of Bartetta, they produce about a dozen of them that year in 1948, both to race them that year in 1948, both to race them that year in 1948, both to race themselves with their own team drivers themselves with their own team drivers themselves with their own team drivers and also sell them to wealthy private and also sell them to wealthy private and also sell them to wealthy private clients. Two of the very first models clients. Two of the very first models clients. Two of the very first models are sold to American clients through are sold to American clients through are sold to American clients through Luigi Kennedy. Luigi Kennedy. Luigi Kennedy. >> One to Tommy Lee who is a wealthy >> One to Tommy Lee who is a wealthy >> One to Tommy Lee who is a wealthy Cadillac dealer in Los Angeles and one Cadillac dealer in Los Angeles and one Cadillac dealer in Los Angeles and one to Briggs Cunningham who is one of the to Briggs Cunningham who is one of the to Briggs Cunningham who is one of the Proctor and Gamble heirs. Proctor and Gamble heirs. Proctor and Gamble heirs. >> You get a sense of like who are the >> You get a sense of like who are the >> You get a sense of like who are the customers in America, customers in America, customers in America, >> right? They're setting the precedent. >> right? They're setting the precedent. >> right? They're setting the precedent. Others are sold to various European Others are sold to various European Others are sold to various European racers and nobility, including Italy's racers and nobility, including Italy's racers and nobility, including Italy's own most celebrated industrialist, Giani own most celebrated industrialist, Giani own most celebrated industrialist, Giani Anelli, the patriarch of the Anelli Anelli, the patriarch of the Anelli Anelli, the patriarch of the Anelli family, which owns Fiat. Some might say family, which owns Fiat. Some might say family, which owns Fiat. Some might say the Henry Ford of Italy. the Henry Ford of Italy. the Henry Ford of Italy. >> The founding family of Fiat. Yeah. >> The founding family of Fiat. Yeah. >> The founding family of Fiat. Yeah. >> Not only the owners, but the founders. >> Not only the owners, but the founders. >> Not only the owners, but the founders. He was one of the first Ferrari He was one of the first Ferrari He was one of the first Ferrari customers. customers. customers. >> He was indeed. He bought a 166 Bartetta. >> He was indeed. He bought a 166 Bartetta. >> He was indeed. He bought a 166 Bartetta. That's an amazing full circle That's an amazing full circle That's an amazing full circle >> poetic. >> poetic. >> poetic. >> We'll come back to that at the end of >> We'll come back to that at the end of >> We'll come back to that at the end of the story. the story. the story. >> Oh yes, we will. So then the next year, >> Oh yes, we will. So then the next year, >> Oh yes, we will. So then the next year, Luigi Kennedy, he's a real believer in Luigi Kennedy, he's a real believer in Luigi Kennedy, he's a real believer in the potential of these machines that the potential of these machines that the potential of these machines that Enzo is building to make a lot of money Enzo is building to make a lot of money Enzo is building to make a lot of money and generate a lot of desire. So he and generate a lot of desire. So he and generate a lot of desire. So he takes one of the 166s and he enters it takes one of the 166s and he enters it takes one of the 166s and he enters it in the first running of the 24 hours of in the first running of the 24 hours of in the first running of the 24 hours of Leal to be run after World War II, the Leal to be run after World War II, the Leal to be run after World War II, the first, you know, post-war running of first, you know, post-war running of first, you know, post-war running of Leal. And the car that he takes, Enzo Leal. And the car that he takes, Enzo Leal. And the car that he takes, Enzo doesn't think the 166 is ready for Leal. doesn't think the 166 is ready for Leal. doesn't think the 166 is ready for Leal. He doesn't want to enter. But Kennedy He doesn't want to enter. But Kennedy He doesn't want to enter. But Kennedy says, "No, no, I'm going to go do it." says, "No, no, I'm going to go do it." says, "No, no, I'm going to go do it." So he takes a privatelyowned car owned So he takes a privatelyowned car owned So he takes a privatelyowned car owned by the British nobleman and gentleman by the British nobleman and gentleman by the British nobleman and gentleman driver Lord Seldon and they win they win driver Lord Seldon and they win they win driver Lord Seldon and they win they win Lemon. Lemon. Lemon. >> Oh wow. >> Oh wow. >> Oh wow. >> Like the whole thing >> Like the whole thing >> Like the whole thing >> not endorsed by Ferrari the company just >> not endorsed by Ferrari the company just >> not endorsed by Ferrari the company just a sort of gentleman driver. a sort of gentleman driver. a sort of gentleman driver. >> It is the first major international race >> It is the first major international race >> It is the first major international race victory for a Ferrari car but it's not victory for a Ferrari car but it's not victory for a Ferrari car but it's not run by the Ferrari team. So this is a run by the Ferrari team. So this is a run by the Ferrari team. So this is a big deal. This is the first time it's big deal. This is the first time it's big deal. This is the first time it's being run after the war. And here's this being run after the war. And here's this being run after the war. And here's this startup Italian I mean startup. startup Italian I mean startup. startup Italian I mean startup. Everybody knows the heritage of Enzo Everybody knows the heritage of Enzo Everybody knows the heritage of Enzo Ferrari and who he is. But here's a Ferrari and who he is. But here's a Ferrari and who he is. But here's a Ferrari winning. And it's like the Ferrari winning. And it's like the Ferrari winning. And it's like the perfect illustration of the business perfect illustration of the business perfect illustration of the business model and Enzo's entrepreneurial genius. model and Enzo's entrepreneurial genius. model and Enzo's entrepreneurial genius. You know, he's got the brand. It's the You know, he's got the brand. It's the You know, he's got the brand. It's the Ferrari that won, but it doesn't even Ferrari that won, but it doesn't even Ferrari that won, but it doesn't even have to be his own racing team, have to be his own racing team, have to be his own racing team, >> right? Oh, that's interesting. It >> right? Oh, that's interesting. It >> right? Oh, that's interesting. It creates just as much consumer desire for creates just as much consumer desire for creates just as much consumer desire for those cars, whether it's him entering those cars, whether it's him entering those cars, whether it's him entering the competition or not. All anybody the competition or not. All anybody the competition or not. All anybody knows and all anybody in America knows and all anybody in America knows and all anybody in America definitely knows is a Ferrari just one definitely knows is a Ferrari just one definitely knows is a Ferrari just one leal. And man, I got to get my hands on leal. And man, I got to get my hands on leal. And man, I got to get my hands on one of those things. one of those things. one of those things. >> And it really validates the engine. I >> And it really validates the engine. I >> And it really validates the engine. I mean, this is famously Enzo Ferrari's mean, this is famously Enzo Ferrari's mean, this is famously Enzo Ferrari's reputation is he was an engine guy. He's reputation is he was an engine guy. He's reputation is he was an engine guy. He's got a few sort of great quotes on this. got a few sort of great quotes on this. got a few sort of great quotes on this. His comment is, I sell engines and the His comment is, I sell engines and the His comment is, I sell engines and the car I throw in for free. car I throw in for free. car I throw in for free. >> Yes. Such a great quote. Another great >> Yes. Such a great quote. Another great >> Yes. Such a great quote. Another great one, aerodynamics are for people who one, aerodynamics are for people who one, aerodynamics are for people who can't build engines. can't build engines. can't build engines. >> That's like that what uh the AMD guy uh >> That's like that what uh the AMD guy uh >> That's like that what uh the AMD guy uh real men build fabs. real men build fabs. real men build fabs. >> Yes. >> Yes. >> Yes. >> Yeah. >> Yeah. >> Yeah. >> Yes. Eventually Ferrari would become >> Yes. Eventually Ferrari would become >> Yes. Eventually Ferrari would become very much about aerodynamics in addition very much about aerodynamics in addition very much about aerodynamics in addition to engines. to engines. to engines. >> Yes. Yes. But we know where Enzo's heart >> Yes. Yes. But we know where Enzo's heart >> Yes. Yes. But we know where Enzo's heart always was. always was. always was. >> Yes. He also famously was a late adopter >> Yes. He also famously was a late adopter >> Yes. He also famously was a late adopter of new technology. This is very very of new technology. This is very very of new technology. This is very very different today, but in the early days, different today, but in the early days, different today, but in the early days, I mean, we're going to talk about I mean, we're going to talk about I mean, we're going to talk about Formula 1 here shortly, but in those Formula 1 here shortly, but in those Formula 1 here shortly, but in those early days of F1, other teams figured early days of F1, other teams figured early days of F1, other teams figured out, hey, you should probably move the out, hey, you should probably move the out, hey, you should probably move the engine to be a mid engine, sort of above engine to be a mid engine, sort of above engine to be a mid engine, sort of above the rear axle, not in the front of the the rear axle, not in the front of the the rear axle, not in the front of the car. And Enzo is very Yeah, like he's car. And Enzo is very Yeah, like he's car. And Enzo is very Yeah, like he's biting his time. He's like, wait and biting his time. He's like, wait and biting his time. He's like, wait and see. And he's got this idea that in a see. And he's got this idea that in a see. And he's got this idea that in a carriage, the the horse pulls the carriage, the the horse pulls the carriage, the the horse pulls the carriage. carriage. carriage. >> Yeah. God put the horse in front of the >> Yeah. God put the horse in front of the >> Yeah. God put the horse in front of the carriage, so the engine's going in front carriage, so the engine's going in front carriage, so the engine's going in front of the car. Yeah. of the car. Yeah. of the car. Yeah. >> Surely the engine should be in the >> Surely the engine should be in the >> Surely the engine should be in the front. Yes. And it took years to to front. Yes. And it took years to to front. Yes. And it took years to to adopt the sort of correct most balanced adopt the sort of correct most balanced adopt the sort of correct most balanced way to do it because he not only wanted way to do it because he not only wanted way to do it because he not only wanted to be a late adopter of technology to to be a late adopter of technology to to be a late adopter of technology to sort of let other people prove it out sort of let other people prove it out sort of let other people prove it out but also because he was in a position to but also because he was in a position to but also because he was in a position to do so as a very early sort of luxury do so as a very early sort of luxury do so as a very early sort of luxury pioneer here. He realized that it only pioneer here. He realized that it only pioneer here. He realized that it only helped build the Ferrari myth. helped build the Ferrari myth. helped build the Ferrari myth. >> Yes. Exactly. >> Yes. Exactly. >> Yes. Exactly. >> To talk about the old ways of doing >> To talk about the old ways of doing >> To talk about the old ways of doing things. things. things. >> This is the point. It's all about the >> This is the point. It's all about the >> This is the point. It's all about the mythb building. Enzo knew exactly what mythb building. Enzo knew exactly what mythb building. Enzo knew exactly what he was doing. he was doing. he was doing. >> He even There's funny entries in the >> He even There's funny entries in the >> He even There's funny entries in the historical record here where in the same historical record here where in the same historical record here where in the same month that Enzo is out there talking month that Enzo is out there talking month that Enzo is out there talking about how the engine belongs in the about how the engine belongs in the about how the engine belongs in the front of the car in Marinelo, there are front of the car in Marinelo, there are front of the car in Marinelo, there are teams who are constructing next year's teams who are constructing next year's teams who are constructing next year's mid-enine car. So, say one thing, do the mid-enine car. So, say one thing, do the mid-enine car. So, say one thing, do the other. other. other. >> Yes. Yes. Very Enzo. It's worth a moment >> Yes. Yes. Very Enzo. It's worth a moment >> Yes. Yes. Very Enzo. It's worth a moment here to talk about what actually is here to talk about what actually is here to talk about what actually is Ferrari at this point in time after Lal Ferrari at this point in time after Lal Ferrari at this point in time after Lal and when they're selling the 166 because and when they're selling the 166 because and when they're selling the 166 because it's pretty pioneering. It's three it's pretty pioneering. It's three it's pretty pioneering. It's three separate things all under the same roof. separate things all under the same roof. separate things all under the same roof. It's its own professional racing team. It's its own professional racing team. It's its own professional racing team. It is a worldclass racing car It is a worldclass racing car It is a worldclass racing car constructor that builds cars both for constructor that builds cars both for constructor that builds cars both for its own team and for private clients. its own team and for private clients. its own team and for private clients. And it's also all of the support And it's also all of the support And it's also all of the support infrastructure that you need to do both infrastructure that you need to do both infrastructure that you need to do both of those things. So it's not like of those things. So it's not like of those things. So it's not like Canadian Lord Seldon could just buy a Canadian Lord Seldon could just buy a Canadian Lord Seldon could just buy a 166 and drive it up to France and like 166 and drive it up to France and like 166 and drive it up to France and like enter Lemon. You got to tune these enter Lemon. You got to tune these enter Lemon. You got to tune these things for the race that you're driving. things for the race that you're driving. things for the race that you're driving. And Ferrari is providing that for his And Ferrari is providing that for his And Ferrari is providing that for his own team and for his clients. This is own team and for his clients. This is own team and for his clients. This is pretty revolutionary. Nobody else had pretty revolutionary. Nobody else had pretty revolutionary. Nobody else had really created something like this really created something like this really created something like this before. You know, other car before. You know, other car before. You know, other car manufacturers as we talked about with manufacturers as we talked about with manufacturers as we talked about with Alpha or Mercedes or or even for a point Alpha or Mercedes or or even for a point Alpha or Mercedes or or even for a point in time even Fiat had their own racing in time even Fiat had their own racing in time even Fiat had their own racing teams, but they were separate teams, but they were separate teams, but they were separate operations. Like think about the operations. Like think about the operations. Like think about the Mercedes racing team today. You know, it Mercedes racing team today. You know, it Mercedes racing team today. You know, it is a completely separate operation. is a completely separate operation. is a completely separate operation. >> Yes. Or most of the F1 operations today >> Yes. Or most of the F1 operations today >> Yes. Or most of the F1 operations today that carry the name of a constructor of that carry the name of a constructor of that carry the name of a constructor of a a car brand, they're actually separate a a car brand, they're actually separate a a car brand, they're actually separate companies that happen to be owned by companies that happen to be owned by companies that happen to be owned by >> Yeah. Separate locations. >> Yeah. Separate locations. >> Yeah. Separate locations. >> Yes. The whole thing. Like Yes. There is >> Yes. The whole thing. Like Yes. There is >> Yes. The whole thing. Like Yes. There is some tech transfer, I'm sure, from the some tech transfer, I'm sure, from the some tech transfer, I'm sure, from the Mercedes F1 team to AMG performance Mercedes F1 team to AMG performance Mercedes F1 team to AMG performance cars, but like it's a tenuous cars, but like it's a tenuous cars, but like it's a tenuous connection. connection. connection. >> Whereas in Marinelo, they're sitting >> Whereas in Marinelo, they're sitting >> Whereas in Marinelo, they're sitting there on the same plot of land. there on the same plot of land. there on the same plot of land. >> For many decades, the early history of >> For many decades, the early history of >> For many decades, the early history of Ferrari, it's the same people. Yeah. Ferrari, it's the same people. Yeah. Ferrari, it's the same people. Yeah. >> Same people making the same cars under >> Same people making the same cars under >> Same people making the same cars under the same roof. Pinnacle of motorsports, the same roof. Pinnacle of motorsports, the same roof. Pinnacle of motorsports, road cars that you can buy, built and road cars that you can buy, built and road cars that you can buy, built and maintained and serviced by the very same maintained and serviced by the very same maintained and serviced by the very same people. That is an incredible people. That is an incredible people. That is an incredible proposition as a client. I mean, and if proposition as a client. I mean, and if proposition as a client. I mean, and if you think about it, it's really not that you think about it, it's really not that you think about it, it's really not that different from any other luxury company different from any other luxury company different from any other luxury company heritage out there like Thierry Hermes heritage out there like Thierry Hermes heritage out there like Thierry Hermes and his sons making saddles for the and his sons making saddles for the and his sons making saddles for the nobility and the new O bourgeoisi on the nobility and the new O bourgeoisi on the nobility and the new O bourgeoisi on the boulevards in Paris and also making boulevards in Paris and also making boulevards in Paris and also making saddles for the jockeyies jumping and saddles for the jockeyies jumping and saddles for the jockeyies jumping and racing on the weekends. They're the same racing on the weekends. They're the same racing on the weekends. They're the same people making the same saddles. Enzo and people making the same saddles. Enzo and people making the same saddles. Enzo and his team are the same people making the his team are the same people making the his team are the same people making the same cars. But I think you nailed this same cars. But I think you nailed this same cars. But I think you nailed this point that I think is a little bit lost point that I think is a little bit lost point that I think is a little bit lost today, which is even then in 1950ish, today, which is even then in 1950ish, today, which is even then in 1950ish, you're not just going to go buy a you're not just going to go buy a you're not just going to go buy a Ferrari and then race it. This is a Ferrari and then race it. This is a Ferrari and then race it. This is a highly maintained serviced thing that is highly maintained serviced thing that is highly maintained serviced thing that is not just like a product that you own. It not just like a product that you own. It not just like a product that you own. It is a bundle of product and services that is a bundle of product and services that is a bundle of product and services that get it ready for any given situation. get it ready for any given situation. get it ready for any given situation. >> Yeah, we joked earlier about the, you >> Yeah, we joked earlier about the, you >> Yeah, we joked earlier about the, you know, you could drive these things on know, you could drive these things on know, you could drive these things on the street when they worked. That was the street when they worked. That was the street when they worked. That was part of the point. Like they were built part of the point. Like they were built part of the point. Like they were built to be racing machines, right? And a lot to be racing machines, right? And a lot to be racing machines, right? And a lot of clients didn't race them or, you of clients didn't race them or, you of clients didn't race them or, you know, if they did race them, race them know, if they did race them, race them know, if they did race them, race them not very well. But the point was you not very well. But the point was you not very well. But the point was you could. This was a weapon. This is not a could. This was a weapon. This is not a could. This was a weapon. This is not a mode of transportation. That's a mode of transportation. That's a mode of transportation. That's a trade-off clients were intentionally trade-off clients were intentionally trade-off clients were intentionally willing to make. This is not the most willing to make. This is not the most willing to make. This is not the most practical car. It's going to have all practical car. It's going to have all practical car. It's going to have all sorts of issues if I want to use it as sorts of issues if I want to use it as sorts of issues if I want to use it as my daily driver, but it's an amazing my daily driver, but it's an amazing my daily driver, but it's an amazing race machine. And because I race, or race machine. And because I race, or race machine. And because I race, or maybe not because I race, I want to own maybe not because I race, I want to own maybe not because I race, I want to own a race machine. And so I'm buying it, a race machine. And so I'm buying it, a race machine. And so I'm buying it, trade-offs and all. trade-offs and all. trade-offs and all. >> Yes. Yes. So then in 1950, the pinnacle >> Yes. Yes. So then in 1950, the pinnacle >> Yes. Yes. So then in 1950, the pinnacle of motorsport arrives, the new Formula 1 of motorsport arrives, the new Formula 1 of motorsport arrives, the new Formula 1 World Championship Series, as we talked World Championship Series, as we talked World Championship Series, as we talked about at great length on our Formula 1 about at great length on our Formula 1 about at great length on our Formula 1 episode. And Ferrari, of course, would episode. And Ferrari, of course, would episode. And Ferrari, of course, would become one of the founding teams and the become one of the founding teams and the become one of the founding teams and the only F1 team continuously operating from only F1 team continuously operating from only F1 team continuously operating from the beginning of the sport all the way the beginning of the sport all the way the beginning of the sport all the way through to today. through to today. through to today. But of course, they are participating in But of course, they are participating in But of course, they are participating in the pinnacle of motorsport, as we've the pinnacle of motorsport, as we've the pinnacle of motorsport, as we've just been talking about, is integral to just been talking about, is integral to just been talking about, is integral to what Ferrari is. And if you buy a what Ferrari is. And if you buy a what Ferrari is. And if you buy a Ferrari as a client, what you are buying Ferrari as a client, what you are buying Ferrari as a client, what you are buying is a direct connection to that ongoing is a direct connection to that ongoing is a direct connection to that ongoing heritage in a way that you are not with heritage in a way that you are not with heritage in a way that you are not with any other auto manufacturer, at least any other auto manufacturer, at least any other auto manufacturer, at least not at this point in history in 1950. not at this point in history in 1950. not at this point in history in 1950. There have been many others who have There have been many others who have There have been many others who have tried that strategy since, obviously tried that strategy since, obviously tried that strategy since, obviously less successfully than Ferrari, and less successfully than Ferrari, and less successfully than Ferrari, and we'll talk about why, but yes, this is we'll talk about why, but yes, this is we'll talk about why, but yes, this is the Ferrari formula that they uniquely the Ferrari formula that they uniquely the Ferrari formula that they uniquely execute well on. Yep. So, execute well on. Yep. So, execute well on. Yep. So, as we continue the operetic life of Enzo as we continue the operetic life of Enzo as we continue the operetic life of Enzo Ferrari here, the re-entry into the Ferrari here, the re-entry into the Ferrari here, the re-entry into the racing business and the new pinnacle of racing business and the new pinnacle of racing business and the new pinnacle of motorsport in Formula 1 unfortunately motorsport in Formula 1 unfortunately motorsport in Formula 1 unfortunately comes with renewed tragedy. Enzo would comes with renewed tragedy. Enzo would comes with renewed tragedy. Enzo would hire the young Alberto Escari, who is hire the young Alberto Escari, who is hire the young Alberto Escari, who is the son of one of his two mentors who the son of one of his two mentors who the son of one of his two mentors who died when Enzo was racing for Alfa died when Enzo was racing for Alfa died when Enzo was racing for Alfa Romeo. And Enzo would take Alberto under Romeo. And Enzo would take Alberto under Romeo. And Enzo would take Alberto under his wing, treat him almost like a his wing, treat him almost like a his wing, treat him almost like a surrogate son until in 1955, Alberto is surrogate son until in 1955, Alberto is surrogate son until in 1955, Alberto is killed practicing in a Ferrari at Monza killed practicing in a Ferrari at Monza killed practicing in a Ferrari at Monza at exactly the same age that his father at exactly the same age that his father at exactly the same age that his father died. And Enzo vows that he will never died. And Enzo vows that he will never died. And Enzo vows that he will never become emotionally close to a driver become emotionally close to a driver become emotionally close to a driver again. He's witnessed too many deaths in again. He's witnessed too many deaths in again. He's witnessed too many deaths in his life. But unfortunately, Fenzo, his life. But unfortunately, Fenzo, his life. But unfortunately, Fenzo, death during this time was only just death during this time was only just death during this time was only just beginning to re-enter his life and his beginning to re-enter his life and his beginning to re-enter his life and his company. company. company. >> And the next death is really the one >> And the next death is really the one >> And the next death is really the one that kind of defines the rest of his that kind of defines the rest of his that kind of defines the rest of his life going forward. life going forward. life going forward. >> Yes. But before we continue this >> Yes. But before we continue this >> Yes. But before we continue this beautiful tragedy of Enzo Ferrari and beautiful tragedy of Enzo Ferrari and beautiful tragedy of Enzo Ferrari and his company, his company, his company, >> now is a great time to tell you about >> now is a great time to tell you about >> now is a great time to tell you about one of our favorite companies, Versel. one of our favorite companies, Versel. one of our favorite companies, Versel. Verscell is building the defining Verscell is building the defining Verscell is building the defining developer infrastructure platform for developer infrastructure platform for developer infrastructure platform for the agentic era. And importantly, just the agentic era. And importantly, just the agentic era. And importantly, just like Ferrari, the crucial part is that like Ferrari, the crucial part is that like Ferrari, the crucial part is that every part of the system is engineered every part of the system is engineered every part of the system is engineered to work together at the highest possible to work together at the highest possible to work together at the highest possible level. It's all about performance. And level. It's all about performance. And level. It's all about performance. And they're not just a deployment platform they're not just a deployment platform they're not just a deployment platform or just a framework builder or just an or just a framework builder or just an or just a framework builder or just an AI cloud anymore. They've become the AI cloud anymore. They've become the AI cloud anymore. They've become the Agentic infrastructure company. Agentic infrastructure company. Agentic infrastructure company. >> And that title actually carries real >> And that title actually carries real >> And that title actually carries real meaning. It's infrastructure built for meaning. It's infrastructure built for meaning. It's infrastructure built for agents where they are first class users agents where they are first class users agents where they are first class users of the platform alongside human of the platform alongside human of the platform alongside human developers. It's also optimized for developers. It's also optimized for developers. It's also optimized for human developers who integrate agents human developers who integrate agents human developers who integrate agents into their workflows. And most into their workflows. And most into their workflows. And most importantly, it's infrastructure that importantly, it's infrastructure that importantly, it's infrastructure that acts with agency. So zero config acts with agency. So zero config acts with agency. So zero config deploys, automatic scaling, deploys, automatic scaling, deploys, automatic scaling, self-optimizing performance. The self-optimizing performance. The self-optimizing performance. The platform handles itself. Self-driving platform handles itself. Self-driving platform handles itself. Self-driving infrastructure as uh they like to call infrastructure as uh they like to call infrastructure as uh they like to call it. it. it. >> Yes. Which makes sense when you look at >> Yes. Which makes sense when you look at >> Yes. Which makes sense when you look at what's already running on Verscell. what's already running on Verscell. what's already running on Verscell. OpenAI, Poly Market, Stripe. Verscell OpenAI, Poly Market, Stripe. Verscell OpenAI, Poly Market, Stripe. Verscell built the modern platform for the web, built the modern platform for the web, built the modern platform for the web, which puts them in a really strong which puts them in a really strong which puts them in a really strong position for the agentic web. position for the agentic web. position for the agentic web. >> Yep. Their AI gateway sandbox and AI SDK >> Yep. Their AI gateway sandbox and AI SDK >> Yep. Their AI gateway sandbox and AI SDK are trusted by everyone from solo are trusted by everyone from solo are trusted by everyone from solo founders to the largest global founders to the largest global founders to the largest global enterprises. And they just shipped enterprises. And they just shipped enterprises. And they just shipped something really exciting, chat SDK, something really exciting, chat SDK, something really exciting, chat SDK, which lets you build agents across which lets you build agents across which lets you build agents across Slack, Teams, Google Chat, Discord, and Slack, Teams, Google Chat, Discord, and Slack, Teams, Google Chat, Discord, and more. All from a single codebase. The AI more. All from a single codebase. The AI more. All from a single codebase. The AI SDK alone gets downloaded 10 million SDK alone gets downloaded 10 million SDK alone gets downloaded 10 million times a week, which is up from 7 million times a week, which is up from 7 million times a week, which is up from 7 million times a week when we recorded our last times a week when we recorded our last times a week when we recorded our last episode on F1 last month. Verscell episode on F1 last month. Verscell episode on F1 last month. Verscell really is the one-stop shop for really is the one-stop shop for really is the one-stop shop for everything you need to build in the everything you need to build in the everything you need to build in the agentic era. Tools, frameworks, agentic era. Tools, frameworks, agentic era. Tools, frameworks, infrastructure, the whole system infrastructure, the whole system infrastructure, the whole system engineered to work together. You can engineered to work together. You can engineered to work together. You can learn more at verscell.com/acquired. learn more at verscell.com/acquired. learn more at verscell.com/acquired. That's verel.com/acquired. That's verel.com/acquired. That's verel.com/acquired. and just tell him that Ben and David and just tell him that Ben and David and just tell him that Ben and David sent you. sent you. sent you. >> All right. So, here in the 1950s, the >> All right. So, here in the 1950s, the >> All right. So, here in the 1950s, the truly truly beautiful and truly truly truly truly beautiful and truly truly truly truly beautiful and truly truly tragic opera of Enzo and Ferrari tragic opera of Enzo and Ferrari tragic opera of Enzo and Ferrari continues. continues. continues. First, let's talk about the beauty. The First, let's talk about the beauty. The First, let's talk about the beauty. The Ferrari Ferrari Ferrari 250 series, which for some of you means 250 series, which for some of you means 250 series, which for some of you means a lot. For the rest of you, we're a lot. For the rest of you, we're a lot. For the rest of you, we're talking about the Ferris Buer car. talking about the Ferris Buer car. talking about the Ferris Buer car. Undeniably Undeniably Undeniably one of the most beautiful automobiles one of the most beautiful automobiles one of the most beautiful automobiles ever manufactured. ever manufactured. ever manufactured. >> But David, did you know it is the Ferris >> But David, did you know it is the Ferris >> But David, did you know it is the Ferris Buer car, but the car you see on screen Buer car, but the car you see on screen Buer car, but the car you see on screen is actually not a Ferrari? is actually not a Ferrari? is actually not a Ferrari? >> Yes, it's a replica. And Ferrari sued >> Yes, it's a replica. And Ferrari sued >> Yes, it's a replica. And Ferrari sued the replica maker after the movie. the replica maker after the movie. the replica maker after the movie. Right. Right. Right. >> That's right. Believe it or not, it is >> That's right. Believe it or not, it is >> That's right. Believe it or not, it is essentially a retrofitted Ford. essentially a retrofitted Ford. essentially a retrofitted Ford. >> Yes. deeply ironic given what we are >> Yes. deeply ironic given what we are >> Yes. deeply ironic given what we are going to talk about in a minute here. going to talk about in a minute here. going to talk about in a minute here. >> And then there's a second version of it >> And then there's a second version of it >> And then there's a second version of it that I think is even a less real that I think is even a less real that I think is even a less real drivable car that they used when it slid drivable car that they used when it slid drivable car that they used when it slid out the glass and fell down and smashed out the glass and fell down and smashed out the glass and fell down and smashed on the ground. So, they did not wreck a on the ground. So, they did not wreck a on the ground. So, they did not wreck a real Ferrari. In fact, there is not even real Ferrari. In fact, there is not even real Ferrari. In fact, there is not even a real Ferrari in camera in that entire a real Ferrari in camera in that entire a real Ferrari in camera in that entire movie. Or at least in that shot. movie. Or at least in that shot. movie. Or at least in that shot. >> Yes, you don't need to worry. No 250s >> Yes, you don't need to worry. No 250s >> Yes, you don't need to worry. No 250s were actually harmed in the making of were actually harmed in the making of were actually harmed in the making of Ferris Pewer's Day Off. Ferris Pewer's Day Off. Ferris Pewer's Day Off. >> Yep. So, as we talked about, the first >> Yep. So, as we talked about, the first >> Yep. So, as we talked about, the first Ferrari that Enzo sold to clients was Ferrari that Enzo sold to clients was Ferrari that Enzo sold to clients was the 166, but less than a hundred of them the 166, but less than a hundred of them the 166, but less than a hundred of them were ever made, were ever made, were ever made, >> which must mean that there was demand >> which must mean that there was demand >> which must mean that there was demand for 101 because there's the the famous for 101 because there's the the famous for 101 because there's the the famous Enzo Ferrari quote that is the business Enzo Ferrari quote that is the business Enzo Ferrari quote that is the business strategy today. Ferrari will always strategy today. Ferrari will always strategy today. Ferrari will always deliver one car less than the market deliver one car less than the market deliver one car less than the market demand. demand. demand. >> I think that actually might be the >> I think that actually might be the >> I think that actually might be the strategy today. Back then with the 166 strategy today. Back then with the 166 strategy today. Back then with the 166 there was demand for a lot more than there was demand for a lot more than there was demand for a lot more than 101. That's true. But they could only 101. That's true. But they could only 101. That's true. But they could only make a 100. make a 100. make a 100. >> So in 1952 >> So in 1952 >> So in 1952 Ferrari comes out with the 250 series Ferrari comes out with the 250 series Ferrari comes out with the 250 series and this is the first real production and this is the first real production and this is the first real production Ferrari and over the next set of years Ferrari and over the next set of years Ferrari and over the next set of years throughout the 50s Ferrari manufactures throughout the 50s Ferrari manufactures throughout the 50s Ferrari manufactures a few thousand of them. So, you know, a few thousand of them. So, you know, a few thousand of them. So, you know, still a very very boutique, you know, still a very very boutique, you know, still a very very boutique, you know, essentially handmade sports car essentially handmade sports car essentially handmade sports car manufacturer, but a lot more scale than manufacturer, but a lot more scale than manufacturer, but a lot more scale than the hundred or so. the hundred or so. the hundred or so. >> Yeah. Real production volumes. >> Yeah. Real production volumes. >> Yeah. Real production volumes. >> Yeah. And as we were alluding to >> Yeah. And as we were alluding to >> Yeah. And as we were alluding to earlier, this car is just stunning. No earlier, this car is just stunning. No earlier, this car is just stunning. No matter which variant of it you're matter which variant of it you're matter which variant of it you're looking at it, the the one in Ferris looking at it, the the one in Ferris looking at it, the the one in Ferris Buer's Day Off is a 250 GT California. Buer's Day Off is a 250 GT California. Buer's Day Off is a 250 GT California. It is truly truly beautiful. And it was It is truly truly beautiful. And it was It is truly truly beautiful. And it was designed not by Enzo Ferrari or even designed not by Enzo Ferrari or even designed not by Enzo Ferrari or even anybody who worked at Ferrari. It was anybody who worked at Ferrari. It was anybody who worked at Ferrari. It was designed by Batista designed by Batista designed by Batista Pinnin was his nickname. Fina and his Pinnin was his nickname. Fina and his Pinnin was his nickname. Fina and his pin and firina coach builders. So pin and firina coach builders. So pin and firina coach builders. So remember earlier when we talked about remember earlier when we talked about remember earlier when we talked about Enzo's first business venture was he was Enzo's first business venture was he was Enzo's first business venture was he was going to be a coach builder. going to be a coach builder. going to be a coach builder. Turns out that was not his calling in Turns out that was not his calling in Turns out that was not his calling in life, but that was the calling in life life, but that was the calling in life life, but that was the calling in life for Pin and Firina. He was basically the for Pin and Firina. He was basically the for Pin and Firina. He was basically the Michelangelo of car body coach builders Michelangelo of car body coach builders Michelangelo of car body coach builders and Enzo totally realized it, totally and Enzo totally realized it, totally and Enzo totally realized it, totally glombmed onto it and built this glombmed onto it and built this glombmed onto it and built this beautiful partnership with Pin and Fina. beautiful partnership with Pin and Fina. beautiful partnership with Pin and Fina. first Batista himself and then his son first Batista himself and then his son first Batista himself and then his son Sergio and then multiple generations Sergio and then multiple generations Sergio and then multiple generations that lasted 61 that lasted 61 that lasted 61 years. This was a multi-generational years. This was a multi-generational years. This was a multi-generational partnership that lasts all the way up partnership that lasts all the way up partnership that lasts all the way up until 2013. until 2013. until 2013. >> The La Ferrari, the La Ferrari Halo car >> The La Ferrari, the La Ferrari Halo car >> The La Ferrari, the La Ferrari Halo car was the first fully in-house designed was the first fully in-house designed was the first fully in-house designed Ferrari. And during those 61 years, I Ferrari. And during those 61 years, I Ferrari. And during those 61 years, I believe every single roadgoing believe every single roadgoing believe every single roadgoing production Ferrari except for one, I production Ferrari except for one, I production Ferrari except for one, I think, was designed by Pinfirina. think, was designed by Pinfirina. think, was designed by Pinfirina. >> Wow. It's quite the run. >> Wow. It's quite the run. >> Wow. It's quite the run. >> It really is. So, Luca Delonte in his >> It really is. So, Luca Delonte in his >> It really is. So, Luca Delonte in his book writes, "Enzo was looking for book writes, "Enzo was looking for book writes, "Enzo was looking for someone who could complement the someone who could complement the someone who could complement the mechanics of his cars with their body mechanics of his cars with their body mechanics of his cars with their body designs. Body and engine, elegance and designs. Body and engine, elegance and designs. Body and engine, elegance and power had to go hand in hand and had to power had to go hand in hand and had to power had to go hand in hand and had to be born and grow together." He said that be born and grow together." He said that be born and grow together." He said that he was not looking for a tailor, but for he was not looking for a tailor, but for he was not looking for a tailor, but for a coach builder who worked at his side a coach builder who worked at his side a coach builder who worked at his side and conveyed in the shape of the body and conveyed in the shape of the body and conveyed in the shape of the body the power and philosophy of his cars. the power and philosophy of his cars. the power and philosophy of his cars. The coach builder, he said, must be The coach builder, he said, must be The coach builder, he said, must be involved from the beginning of the involved from the beginning of the involved from the beginning of the project, not merely called upon to dress project, not merely called upon to dress project, not merely called upon to dress a finished project. It really was a a finished project. It really was a a finished project. It really was a partnership between Enzo and Pin and partnership between Enzo and Pin and partnership between Enzo and Pin and Firina. Firina. Firina. >> As much as Enzo would kind of make noise >> As much as Enzo would kind of make noise >> As much as Enzo would kind of make noise about, oh, I just make engines and then, about, oh, I just make engines and then, about, oh, I just make engines and then, you know, we slap some aluminum on. I you know, we slap some aluminum on. I you know, we slap some aluminum on. I don't really care what the aluminum is. don't really care what the aluminum is. don't really care what the aluminum is. Uh, no. These things were thoughtfully Uh, no. These things were thoughtfully Uh, no. These things were thoughtfully designed and built hand in hand. designed and built hand in hand. designed and built hand in hand. >> Yeah. Pin and Pirina was like the Johnny >> Yeah. Pin and Pirina was like the Johnny >> Yeah. Pin and Pirina was like the Johnny IV to the Enzo Steve Jobs. IV to the Enzo Steve Jobs. IV to the Enzo Steve Jobs. >> That's a great analogy. that in fact >> That's a great analogy. that in fact >> That's a great analogy. that in fact Johnny Iv is going to come back into the Johnny Iv is going to come back into the Johnny Iv is going to come back into the story later as we shall see. story later as we shall see. story later as we shall see. >> Yep. >> Yep. >> Yep. >> It's probably also worth a quick moment >> It's probably also worth a quick moment >> It's probably also worth a quick moment here to talk about the sort of Italian here to talk about the sort of Italian here to talk about the sort of Italian nature of beauty and luxury versus the nature of beauty and luxury versus the nature of beauty and luxury versus the French nature of beauty and luxury that French nature of beauty and luxury that French nature of beauty and luxury that we've covered on Hermes or LVMH. In both we've covered on Hermes or LVMH. In both we've covered on Hermes or LVMH. In both cases, French luxury and Italian luxury, cases, French luxury and Italian luxury, cases, French luxury and Italian luxury, what you are buying when you are buying what you are buying when you are buying what you are buying when you are buying one of these products is a mixture of one of these products is a mixture of one of these products is a mixture of craftsmanship craftsmanship craftsmanship and a dream that it represents. But the and a dream that it represents. But the and a dream that it represents. But the sort of nature of those two ingredients sort of nature of those two ingredients sort of nature of those two ingredients are different between French and Italian are different between French and Italian are different between French and Italian luxury. The primary ingredient in French luxury. The primary ingredient in French luxury. The primary ingredient in French luxury is the dream and specifically the luxury is the dream and specifically the luxury is the dream and specifically the dreamlike connection to French royalty. dreamlike connection to French royalty. dreamlike connection to French royalty. in this like mostly imagined past that in this like mostly imagined past that in this like mostly imagined past that you know if you buy a Birkin bag or if you know if you buy a Birkin bag or if you know if you buy a Birkin bag or if you buy a Louis Vuitton trunk you too you buy a Louis Vuitton trunk you too you buy a Louis Vuitton trunk you too can be like the bygon French royalty can be like the bygon French royalty can be like the bygon French royalty >> of the nobility. >> of the nobility. >> of the nobility. >> Yeah. Exactly. Exactly. You can live >> Yeah. Exactly. Exactly. You can live >> Yeah. Exactly. Exactly. You can live that dream. You can live that life. And that dream. You can live that life. And that dream. You can live that life. And the beauty that's associated with that the beauty that's associated with that the beauty that's associated with that is, you know, very regal, very soft, is, you know, very regal, very soft, is, you know, very regal, very soft, very refined, very elegant very refined, very elegant very refined, very elegant >> and quiet. It's not yelling at you. >> and quiet. It's not yelling at you. >> and quiet. It's not yelling at you. There's no engines involved. There's no engines involved. There's no engines involved. >> There are no engines involved. That is >> There are no engines involved. That is >> There are no engines involved. That is for sure. There are French car makers, for sure. There are French car makers, for sure. There are French car makers, but we're not going to make any episodes but we're not going to make any episodes but we're not going to make any episodes about them, shall we say. Italy, though, doesn't have the same Italy, though, doesn't have the same kind of history as France. I mean, it's kind of history as France. I mean, it's kind of history as France. I mean, it's got like the Roman history and all that got like the Roman history and all that got like the Roman history and all that ancient history, but it doesn't have the ancient history, but it doesn't have the ancient history, but it doesn't have the same royal lineage and history. So, with same royal lineage and history. So, with same royal lineage and history. So, with Italian luxury, the primary ingredient Italian luxury, the primary ingredient Italian luxury, the primary ingredient is the craftsmanship, and that's is the craftsmanship, and that's is the craftsmanship, and that's embodied in the design and the passion. embodied in the design and the passion. embodied in the design and the passion. the myth, the dream that you're buying the myth, the dream that you're buying the myth, the dream that you're buying is about reinforcing that passion, that is about reinforcing that passion, that is about reinforcing that passion, that emotion that went into the product. And emotion that went into the product. And emotion that went into the product. And the best way I can think of to the best way I can think of to the best way I can think of to illustrate this is just the centrality illustrate this is just the centrality illustrate this is just the centrality of the designers. Like, who are the of the designers. Like, who are the of the designers. Like, who are the designers at Hermes? If you really know designers at Hermes? If you really know designers at Hermes? If you really know the house, if you really know Hermes, the house, if you really know Hermes, the house, if you really know Hermes, you probably know who the designers are. you probably know who the designers are. you probably know who the designers are. But for most Hermes clients, it's just But for most Hermes clients, it's just But for most Hermes clients, it's just like, oh, this is Hermes. Yeah. In like, oh, this is Hermes. Yeah. In like, oh, this is Hermes. Yeah. In Italy, it's totally different. You could Italy, it's totally different. You could Italy, it's totally different. You could have Gucci, but it's like, well, which have Gucci, but it's like, well, which have Gucci, but it's like, well, which Gucci is that? Is that Tom Ford Gucci or Gucci is that? Is that Tom Ford Gucci or Gucci is that? Is that Tom Ford Gucci or is that Gucci in the wilderness Gucci or is that Gucci in the wilderness Gucci or is that Gucci in the wilderness Gucci or name your other designer like Giorgio name your other designer like Giorgio name your other designer like Giorgio Armani or Donatella Versace or Valentino Armani or Donatella Versace or Valentino Armani or Donatella Versace or Valentino or Brunelloo Cuchinelli today? Like the or Brunelloo Cuchinelli today? Like the or Brunelloo Cuchinelli today? Like the actual people and the designers and actual people and the designers and actual people and the designers and their passion and their personality is their passion and their personality is their passion and their personality is much more central than in French luxury. much more central than in French luxury. much more central than in French luxury. That's interesting. I'm not sure I That's interesting. I'm not sure I That's interesting. I'm not sure I totally agree with the distinction, but totally agree with the distinction, but totally agree with the distinction, but a thing that I will say is you go to a thing that I will say is you go to a thing that I will say is you go to Paris to absorb the history and look at Paris to absorb the history and look at Paris to absorb the history and look at the fine museums and you go to Italy to the fine museums and you go to Italy to the fine museums and you go to Italy to feel something, to let loose, feel something, to let loose, feel something, to let loose, >> to to live your life in the fullest, to >> to to live your life in the fullest, to >> to to live your life in the fullest, to let your hair down. I mean, it's a whole let your hair down. I mean, it's a whole let your hair down. I mean, it's a whole different side of life they are asking different side of life they are asking different side of life they are asking you to embrace when you are doing you to embrace when you are doing you to embrace when you are doing something distinctively Italian. something distinctively Italian. something distinctively Italian. >> Yes, it is a very different kind of >> Yes, it is a very different kind of >> Yes, it is a very different kind of thing. And in this era, right after thing. And in this era, right after thing. And in this era, right after World War II, the greatest designers and World War II, the greatest designers and World War II, the greatest designers and the greatest innovators in Italy were the greatest innovators in Italy were the greatest innovators in Italy were the car designers. And these are death the car designers. And these are death the car designers. And these are death machines. Totally. You're on the edge. machines. Totally. You're on the edge. machines. Totally. You're on the edge. You're living every ounce of life that You're living every ounce of life that You're living every ounce of life that you possibly could to the fullest. These you possibly could to the fullest. These you possibly could to the fullest. These are death machines and they are being are death machines and they are being are death machines and they are being designed by the era and the country's designed by the era and the country's designed by the era and the country's most esteemed designers. most esteemed designers. most esteemed designers. >> Yes. Yes. They are beautiful death >> Yes. Yes. They are beautiful death >> Yes. Yes. They are beautiful death machines. beckoning to risk it all. machines. beckoning to risk it all. machines. beckoning to risk it all. >> That is exactly on point. And thus comes >> That is exactly on point. And thus comes >> That is exactly on point. And thus comes the yang to the yin of beauty, which is the yang to the yin of beauty, which is the yang to the yin of beauty, which is this tragedy and death that is such a this tragedy and death that is such a this tragedy and death that is such a part of Ferrari and motorsport. So we part of Ferrari and motorsport. So we part of Ferrari and motorsport. So we talked about in 1955, talked about in 1955, talked about in 1955, Alberto Escari, the sort of, you know, Alberto Escari, the sort of, you know, Alberto Escari, the sort of, you know, surrogate son if you will to Enzo, is surrogate son if you will to Enzo, is surrogate son if you will to Enzo, is killed at Monza. The very next year in killed at Monza. The very next year in killed at Monza. The very next year in 1956, 1956, 1956, Enzo's own son, Dino, who he's been Enzo's own son, Dino, who he's been Enzo's own son, Dino, who he's been grooming to take over the business, grooming to take over the business, grooming to take over the business, >> continue the family lineage, his heir, >> continue the family lineage, his heir, >> continue the family lineage, his heir, his actual heir, his actual heir, his actual heir, >> dies at age 24 of muscular distrophe. >> dies at age 24 of muscular distrophe. >> dies at age 24 of muscular distrophe. So, not in a race car, but a horrible So, not in a race car, but a horrible So, not in a race car, but a horrible tragic disease. tragic disease. tragic disease. >> I mean, and that's even more tragic. >> I mean, and that's even more tragic. >> I mean, and that's even more tragic. >> Yeah, it's more romantic if he had died >> Yeah, it's more romantic if he had died >> Yeah, it's more romantic if he had died in a race car. And Enzo has spent 24 in a race car. And Enzo has spent 24 in a race car. And Enzo has spent 24 years since Dino's birth keeping him years since Dino's birth keeping him years since Dino's birth keeping him safe. I mean, doing everything that he safe. I mean, doing everything that he safe. I mean, doing everything that he can control in his worldly power to not can control in his worldly power to not can control in his worldly power to not be around race cars. be around race cars. be around race cars. >> Yes. Yes. It's such a great point. >> Yes. Yes. It's such a great point. >> Yes. Yes. It's such a great point. >> I mean, he's not racing them. He's >> I mean, he's not racing them. He's >> I mean, he's not racing them. He's trying not to have Dino race them. He's trying not to have Dino race them. He's trying not to have Dino race them. He's not meeting the drivers anymore. He's not meeting the drivers anymore. He's not meeting the drivers anymore. He's trying not to get too wrapped up in the trying not to get too wrapped up in the trying not to get too wrapped up in the the lives of the drivers. And yet, his the lives of the drivers. And yet, his the lives of the drivers. And yet, his son is still taken from him in this son is still taken from him in this son is still taken from him in this horrible illness that he cannot control horrible illness that he cannot control horrible illness that he cannot control and is pure randomness and awfulness. and is pure randomness and awfulness. and is pure randomness and awfulness. Such a great point and it is truly Such a great point and it is truly Such a great point and it is truly shattering for Enzo. This is the shattering for Enzo. This is the shattering for Enzo. This is the shattering event among many shattering shattering event among many shattering shattering event among many shattering events in his life events in his life events in his life >> because it's of course the grief for his >> because it's of course the grief for his >> because it's of course the grief for his lost son, lost son, lost son, >> but it's also the grief for his empire. >> but it's also the grief for his empire. >> but it's also the grief for his empire. Like is is gone. He has no heir anymore. Like is is gone. He has no heir anymore. Like is is gone. He has no heir anymore. The line won't continue. So after Dino's The line won't continue. So after Dino's The line won't continue. So after Dino's death, Enzo stops going to races. It's death, Enzo stops going to races. It's death, Enzo stops going to races. It's sort of like a self-inflicted punishment sort of like a self-inflicted punishment sort of like a self-inflicted punishment that you know if Dino can't be here with that you know if Dino can't be here with that you know if Dino can't be here with me to go to the races then I will no me to go to the races then I will no me to go to the races then I will no longer travel to and go to the races to longer travel to and go to the races to longer travel to and go to the races to my great terrible joys and it is both my great terrible joys and it is both my great terrible joys and it is both the end of his family line or so he the end of his family line or so he the end of his family line or so he believes at this point in history but believes at this point in history but believes at this point in history but also it's the end of sort of the also it's the end of sort of the also it's the end of sort of the inherited company that this is an old inherited company that this is an old inherited company that this is an old school era of capitalism where the school era of capitalism where the school era of capitalism where the company would be passed down through the company would be passed down through the company would be passed down through the male heir in the family. I mean, today male heir in the family. I mean, today male heir in the family. I mean, today Ferrari is a publicly traded company Ferrari is a publicly traded company Ferrari is a publicly traded company with multiple families and owners and with multiple families and owners and with multiple families and owners and parent companies and holding companies parent companies and holding companies parent companies and holding companies involved. Enzo's assumption here is that involved. Enzo's assumption here is that involved. Enzo's assumption here is that none of that is going to happen in the none of that is going to happen in the none of that is going to happen in the far future. It is that Dino, my son, far future. It is that Dino, my son, far future. It is that Dino, my son, will own it and his descendants will own will own it and his descendants will own will own it and his descendants will own it. Well, if you know anything about the it. Well, if you know anything about the it. Well, if you know anything about the shareholding structure of Ferrari today shareholding structure of Ferrari today shareholding structure of Ferrari today or its board of directors, you might or its board of directors, you might or its board of directors, you might say, "Wait a minute. There sure is a say, "Wait a minute. There sure is a say, "Wait a minute. There sure is a Ferrari who owns it." Ferrari who owns it." Ferrari who owns it." >> Yeah. Isn't there a current member of >> Yeah. Isn't there a current member of >> Yeah. Isn't there a current member of the Ferrari board of directors named the Ferrari board of directors named the Ferrari board of directors named Pierro Ferrari who owns 10% of the Pierro Ferrari who owns 10% of the Pierro Ferrari who owns 10% of the company and is also the biological son company and is also the biological son company and is also the biological son of Enzo who very much would have been of Enzo who very much would have been of Enzo who very much would have been alive at this time. alive at this time. alive at this time. >> Yep. >> Yep. >> Yep. >> So Enzo had an affair. Enzo had many >> So Enzo had an affair. Enzo had many >> So Enzo had an affair. Enzo had many affairs, but one of his affairs with a affairs, but one of his affairs with a affairs, but one of his affairs with a woman named Lena Lardy produced a son, woman named Lena Lardy produced a son, woman named Lena Lardy produced a son, Pierro. And the just devastatingly cruel Pierro. And the just devastatingly cruel Pierro. And the just devastatingly cruel reality of Italy in that time and place reality of Italy in that time and place reality of Italy in that time and place is that illegitimate children by law did is that illegitimate children by law did is that illegitimate children by law did not exist. They were invisible. Pierro not exist. They were invisible. Pierro not exist. They were invisible. Pierro was invisible at this point in time. So was invisible at this point in time. So was invisible at this point in time. So Enzo knows he has this other son who he Enzo knows he has this other son who he Enzo knows he has this other son who he loves but who will never inherit his loves but who will never inherit his loves but who will never inherit his empire. empire. empire. >> And when you say invisible, he certainly >> And when you say invisible, he certainly >> And when you say invisible, he certainly isn't a Ferrari. He's not taking that isn't a Ferrari. He's not taking that isn't a Ferrari. He's not taking that surname. Divorce was illegal at this surname. Divorce was illegal at this surname. Divorce was illegal at this point. point. point. >> Yes. Divorce was not legal in Italy >> Yes. Divorce was not legal in Italy >> Yes. Divorce was not legal in Italy until the 1970s. until the 1970s. until the 1970s. >> So in the eyes of the law, like not an >> So in the eyes of the law, like not an >> So in the eyes of the law, like not an heir. heir. heir. >> Yeah. >> Yeah. >> Yeah. >> Not capable of being an heir. >> Not capable of being an heir. >> Not capable of being an heir. >> A tragedy is the only word that I can >> A tragedy is the only word that I can >> A tragedy is the only word that I can think of to describe it. So that was think of to describe it. So that was think of to describe it. So that was 1956. 1956. 1956. And then in 1957 And then in 1957 And then in 1957 at the Miglia race in Italy, at the Miglia race in Italy, at the Miglia race in Italy, >> which this race, this is this amazing, >> which this race, this is this amazing, >> which this race, this is this amazing, legendary race through Italy that ran legendary race through Italy that ran legendary race through Italy that ran a,000 miles and it runs from 1927 a,000 miles and it runs from 1927 a,000 miles and it runs from 1927 to 1957. to 1957. to 1957. It is It is It is >> beautiful and bloody. There is at least >> beautiful and bloody. There is at least >> beautiful and bloody. There is at least one death in every single year except one death in every single year except one death in every single year except 1927. 1927. 1927. and a small span 1931 to 1934 and and a small span 1931 to 1934 and and a small span 1931 to 1934 and another 2-year span of 36 to 37. But another 2-year span of 36 to 37. But another 2-year span of 36 to 37. But basically, this was this race that basically, this was this race that basically, this was this race that everyone came out for and watched death. everyone came out for and watched death. everyone came out for and watched death. Yeah. And Enzo has a quote on this. He Yeah. And Enzo has a quote on this. He Yeah. And Enzo has a quote on this. He loved the MLE Miglia. He said, "It is loved the MLE Miglia. He said, "It is loved the MLE Miglia. He said, "It is the race of the people." One may say the race of the people." One may say the race of the people." One may say that the whole of Italy leans forward that the whole of Italy leans forward that the whole of Italy leans forward with her eyes on the tarved strip of with her eyes on the tarved strip of with her eyes on the tarved strip of roads somewhere along the course on roads somewhere along the course on roads somewhere along the course on Milleia Day. It is a day when I feel Milleia Day. It is a day when I feel Milleia Day. It is a day when I feel that my life is useful. that my life is useful. that my life is useful. >> Wow. I didn't realize that this 1957 >> Wow. I didn't realize that this 1957 >> Wow. I didn't realize that this 1957 race is the last one. race is the last one. race is the last one. >> It is the last one. >> It is the last one. >> It is the last one. >> It ends with this. Wow. So at this race >> It ends with this. Wow. So at this race >> It ends with this. Wow. So at this race in 1957, again two years after the F1 in 1957, again two years after the F1 in 1957, again two years after the F1 crash that killed his driver protege, crash that killed his driver protege, crash that killed his driver protege, one year after the death of Dino, a one year after the death of Dino, a one year after the death of Dino, a Ferrari flies off the road and into the Ferrari flies off the road and into the Ferrari flies off the road and into the crowd, killing the driver and nine crowd, killing the driver and nine crowd, killing the driver and nine spectators, including five children. spectators, including five children. spectators, including five children. And after the race, Enzo is charged by And after the race, Enzo is charged by And after the race, Enzo is charged by the Italian authorities with the Italian authorities with the Italian authorities with manslaughter. manslaughter. manslaughter. >> Was he even at the race? >> Was he even at the race? >> Was he even at the race? >> I don't believe he was at the race. No, >> I don't believe he was at the race. No, >> I don't believe he was at the race. No, >> but he's the owner of the company that >> but he's the owner of the company that >> but he's the owner of the company that made the car and there's a high death made the car and there's a high death made the car and there's a high death count, count, count, >> right? Well, it's not just that he's the >> right? Well, it's not just that he's the >> right? Well, it's not just that he's the owner, it's that he is the architect of owner, it's that he is the architect of owner, it's that he is the architect of this slaughter basically, which is this slaughter basically, which is this slaughter basically, which is exactly what the Catholic Church charges exactly what the Catholic Church charges exactly what the Catholic Church charges him with. So, not only is the Italian him with. So, not only is the Italian him with. So, not only is the Italian state, the police, you know, charging state, the police, you know, charging state, the police, you know, charging him with manslaughter, the church, the him with manslaughter, the church, the him with manslaughter, the church, the pope comes after him. So, the Vatican's pope comes after him. So, the Vatican's pope comes after him. So, the Vatican's official newspaper runs a story after official newspaper runs a story after official newspaper runs a story after the race with the headline of industrial the race with the headline of industrial the race with the headline of industrial Saturn. Saturn, of course, being the Saturn. Saturn, of course, being the Saturn. Saturn, of course, being the Roman god who devoured his own children. Roman god who devoured his own children. Roman god who devoured his own children. And it calls Enzo, quote, a modern And it calls Enzo, quote, a modern And it calls Enzo, quote, a modern Saturn become industrial tycoon. He Saturn become industrial tycoon. He Saturn become industrial tycoon. He continues to devour his sons as in the continues to devour his sons as in the continues to devour his sons as in the myth. So unfortunately in reality myth. So unfortunately in reality myth. So unfortunately in reality ultimately Enzo is acquitted after long ultimately Enzo is acquitted after long ultimately Enzo is acquitted after long process in the legal case and he reaches process in the legal case and he reaches process in the legal case and he reaches a compromise with the Vatican that he a compromise with the Vatican that he a compromise with the Vatican that he can continue racing and Ferrari can can continue racing and Ferrari can can continue racing and Ferrari can continue to sort of exist as this sort continue to sort of exist as this sort continue to sort of exist as this sort of national champion within Italy. of national champion within Italy. of national champion within Italy. >> Oh is this as long as they're not >> Oh is this as long as they're not >> Oh is this as long as they're not Italian drivers Italian drivers Italian drivers >> as long as he agrees to never hire >> as long as he agrees to never hire >> as long as he agrees to never hire Italian drivers? You know, basically Italian drivers? You know, basically Italian drivers? You know, basically like you can kill young men as long as like you can kill young men as long as like you can kill young men as long as you don't kill our young men. you don't kill our young men. you don't kill our young men. >> Brutal. >> Brutal. >> Brutal. >> Oh man. But all of this, this whole era, >> Oh man. But all of this, this whole era, >> Oh man. But all of this, this whole era, this just weighs incredibly incredibly this just weighs incredibly incredibly this just weighs incredibly incredibly heavily on Enzo. And you might be heavily on Enzo. And you might be heavily on Enzo. And you might be wondering like why do the drivers, why wondering like why do the drivers, why wondering like why do the drivers, why are they okay with the death? Why is are they okay with the death? Why is are they okay with the death? Why is Enzo okay with the death? Enzo viewed Enzo okay with the death? Enzo viewed Enzo okay with the death? Enzo viewed this as a fundamental human expression this as a fundamental human expression this as a fundamental human expression of striving. His comment is that one of striving. His comment is that one of striving. His comment is that one drives at high speeds in order to drives at high speeds in order to drives at high speeds in order to transcend oneself. transcend oneself. transcend oneself. >> And many of the drivers would sort of >> And many of the drivers would sort of >> And many of the drivers would sort of echo this same thing. Ken Miles, who is echo this same thing. Ken Miles, who is echo this same thing. Ken Miles, who is a very famous race car driver, actually a very famous race car driver, actually a very famous race car driver, actually on the Ford and Shelby, the US side that on the Ford and Shelby, the US side that on the Ford and Shelby, the US side that we'll talk about here shortly, his quote we'll talk about here shortly, his quote we'll talk about here shortly, his quote on this is, "I'd rather die in a racing on this is, "I'd rather die in a racing on this is, "I'd rather die in a racing car than get eaten up by cancer." And car than get eaten up by cancer." And car than get eaten up by cancer." And it's this idea that look, we're going to it's this idea that look, we're going to it's this idea that look, we're going to die, but I get to feel like I live the die, but I get to feel like I live the die, but I get to feel like I live the most life by putting my life at risk and most life by putting my life at risk and most life by putting my life at risk and living right on the limit. living right on the limit. living right on the limit. >> I mean, it's kind of actually like a way >> I mean, it's kind of actually like a way >> I mean, it's kind of actually like a way of fighting back against death. Yes, of fighting back against death. Yes, of fighting back against death. Yes, >> these cars are weapons to fight against >> these cars are weapons to fight against >> these cars are weapons to fight against death. You can come right up and you can death. You can come right up and you can death. You can come right up and you can like stare death in the face and you can like stare death in the face and you can like stare death in the face and you can hopefully say not today or or not. So hopefully say not today or or not. So hopefully say not today or or not. So again, paradoxically, again, paradoxically, again, paradoxically, all of this tragedy is just great for all of this tragedy is just great for all of this tragedy is just great for business. This is part of the business. This is part of the business. This is part of the attraction. It only makes Enzo and his attraction. It only makes Enzo and his attraction. It only makes Enzo and his Ferraris more globally known, more Ferraris more globally known, more Ferraris more globally known, more romantic, more coveted. It's like for romantic, more coveted. It's like for romantic, more coveted. It's like for Porsche, when James Dean died in the Porsche, when James Dean died in the Porsche, when James Dean died in the Porsche 550 Spider, or in the modern era Porsche 550 Spider, or in the modern era Porsche 550 Spider, or in the modern era when Paul Walker died in the Carrera GT, when Paul Walker died in the Carrera GT, when Paul Walker died in the Carrera GT, that made those cars legendary. That that made those cars legendary. That that made those cars legendary. That made people want them. Yep. made people want them. Yep. made people want them. Yep. >> And here is Ferrari. It's even more. His >> And here is Ferrari. It's even more. His >> And here is Ferrari. It's even more. His cars are being labeled by the Pope as cars are being labeled by the Pope as cars are being labeled by the Pope as forbidden fruit. If you're a young man forbidden fruit. If you're a young man forbidden fruit. If you're a young man or if you're a more accurately a or if you're a more accurately a or if you're a more accurately a middle-aged man having a crisis, like middle-aged man having a crisis, like middle-aged man having a crisis, like you know what more could you desire? you know what more could you desire? you know what more could you desire? >> And yeah, if the Pope says you just >> And yeah, if the Pope says you just >> And yeah, if the Pope says you just can't do this one thing, what's the one can't do this one thing, what's the one can't do this one thing, what's the one thing you're going to be interested in thing you're going to be interested in thing you're going to be interested in doing? It's like it's like a toddler. doing? It's like it's like a toddler. doing? It's like it's like a toddler. No, you as long as you don't have candy, No, you as long as you don't have candy, No, you as long as you don't have candy, we can do anything you want. we can do anything you want. we can do anything you want. >> Exactly. So throughout the late 50s, >> Exactly. So throughout the late 50s, >> Exactly. So throughout the late 50s, sales of Ferrari 250s are just ramping. sales of Ferrari 250s are just ramping. sales of Ferrari 250s are just ramping. You know, they are flying out of You know, they are flying out of You know, they are flying out of showrooms across the world and showrooms across the world and showrooms across the world and particularly in America. By 1960, particularly in America. By 1960, particularly in America. By 1960, production reaches 300 cars a year. You production reaches 300 cars a year. You production reaches 300 cars a year. You know, they're making more or less 250 know, they're making more or less 250 know, they're making more or less 250 every working day. And by 1962, it's 500 every working day. And by 1962, it's 500 every working day. And by 1962, it's 500 cars a year. And I believe at this point cars a year. And I believe at this point cars a year. And I believe at this point distribution is sort of roughly divided distribution is sort of roughly divided distribution is sort of roughly divided a third a third a third between local a third a third a third between local a third a third a third between local Italian clients, American clients and Italian clients, American clients and Italian clients, American clients and then the rest of Europe and production then the rest of Europe and production then the rest of Europe and production just keeps growing by call it 50 to 100 just keeps growing by call it 50 to 100 just keeps growing by call it 50 to 100 cars a year throughout the early 60s and cars a year throughout the early 60s and cars a year throughout the early 60s and there is plenty of demand. Y 1963 though there is plenty of demand. Y 1963 though there is plenty of demand. Y 1963 though Enzo is now getting older. He turns 65. Enzo is now getting older. He turns 65. Enzo is now getting older. He turns 65. He's had all this death. He publishes He's had all this death. He publishes He's had all this death. He publishes his memoirs, which you know, as we said his memoirs, which you know, as we said his memoirs, which you know, as we said before, are aptly titled My Terrible before, are aptly titled My Terrible before, are aptly titled My Terrible Joys. His plan by this point is that Joys. His plan by this point is that Joys. His plan by this point is that he'd be getting ready to hand the he'd be getting ready to hand the he'd be getting ready to hand the company to Dino, but Dino is dead. At a company to Dino, but Dino is dead. At a company to Dino, but Dino is dead. At a press conference that's held, one of the press conference that's held, one of the press conference that's held, one of the journalists asks Enzo, you know, you're journalists asks Enzo, you know, you're journalists asks Enzo, you know, you're you're older now. What will happen to you're older now. What will happen to you're older now. What will happen to Ferrari when you're gone? And he replies Ferrari when you're gone? And he replies Ferrari when you're gone? And he replies with the famous quote from King Louis X with the famous quote from King Louis X with the famous quote from King Louis X 15th in France. a premoir leuge 15th in France. a premoir leuge 15th in France. a premoir leuge chaos, you know, the French Revolution, chaos, you know, the French Revolution, chaos, you know, the French Revolution, it's all coming after me. It's all gonna it's all coming after me. It's all gonna it's all coming after me. It's all gonna end with me. And of course, Pierro at end with me. And of course, Pierro at end with me. And of course, Pierro at this point is already working in this point is already working in this point is already working in Ferrari. He's an employee at Ferrari, Ferrari. He's an employee at Ferrari, Ferrari. He's an employee at Ferrari, but it's a secret that he's Enzo's son, but it's a secret that he's Enzo's son, but it's a secret that he's Enzo's son, and he knows he can never inherit. and he knows he can never inherit. and he knows he can never inherit. >> I didn't realize it was still a secret. >> I didn't realize it was still a secret. >> I didn't realize it was still a secret. >> Yeah. I mean, people within the company >> Yeah. I mean, people within the company >> Yeah. I mean, people within the company know, but it's like you don't talk know, but it's like you don't talk know, but it's like you don't talk about, hey, Pierro is actually Enzo's about, hey, Pierro is actually Enzo's about, hey, Pierro is actually Enzo's son. So the question that the journalist son. So the question that the journalist son. So the question that the journalist asked remains though, asked remains though, asked remains though, what's going to become of the company, what's going to become of the company, what's going to become of the company, >> right? >> right? >> right? >> Well, enter >> Well, enter >> Well, enter the Ford Motor Company and Ford versus the Ford Motor Company and Ford versus the Ford Motor Company and Ford versus Ferrari. Ferrari. Ferrari. >> Yes. So listeners, most of this is from >> Yes. So listeners, most of this is from >> Yes. So listeners, most of this is from the book Go Like Hell, which is the book the book Go Like Hell, which is the book the book Go Like Hell, which is the book that Ford versus Ferrari is based on, that Ford versus Ferrari is based on, that Ford versus Ferrari is based on, >> the movie. Yep. So in 1963, Henry Ford >> the movie. Yep. So in 1963, Henry Ford >> the movie. Yep. So in 1963, Henry Ford II, which notably this is the grandson II, which notably this is the grandson II, which notably this is the grandson of Henry Ford I, there was Henry Ford, of Henry Ford I, there was Henry Ford, of Henry Ford I, there was Henry Ford, then Edsil, then Henry Ford II, and he's then Edsil, then Henry Ford II, and he's then Edsil, then Henry Ford II, and he's he's looking to make his mark. I mean, he's looking to make his mark. I mean, he's looking to make his mark. I mean, he at this point it's third generation he at this point it's third generation he at this point it's third generation ownership. Ford is this great American ownership. Ford is this great American ownership. Ford is this great American company. There's a lot of people that company. There's a lot of people that company. There's a lot of people that are sort of throwing barbs saying, well, are sort of throwing barbs saying, well, are sort of throwing barbs saying, well, I mean, this is your grandfather and I mean, this is your grandfather and I mean, this is your grandfather and then that was your father, but like how then that was your father, but like how then that was your father, but like how much of this is really you? That's much of this is really you? That's much of this is really you? That's starting to kind of weigh on him. He starting to kind of weigh on him. He starting to kind of weigh on him. He decides that Ford needs to be in the decides that Ford needs to be in the decides that Ford needs to be in the racing business to change their image racing business to change their image racing business to change their image and stimulate sales for the new and stimulate sales for the new and stimulate sales for the new generation. Now, over in the racing land generation. Now, over in the racing land generation. Now, over in the racing land of Ferrari, they're on a hot streak. of Ferrari, they're on a hot streak. of Ferrari, they're on a hot streak. We've been talking about their We've been talking about their We've been talking about their production at this point in time, but production at this point in time, but production at this point in time, but they had just won Lama in 1958 and then they had just won Lama in 1958 and then they had just won Lama in 1958 and then all in a row 1960,61 62 63 64 65. So if all in a row 1960,61 62 63 64 65. So if all in a row 1960,61 62 63 64 65. So if you are interested in entering racing, you are interested in entering racing, you are interested in entering racing, either you gotta beat Ferrari or you either you gotta beat Ferrari or you either you gotta beat Ferrari or you gotta own Ferrari. gotta own Ferrari. gotta own Ferrari. >> Yeah. >> Yeah. >> Yeah. >> So the deuce, as Henry Ford II was >> So the deuce, as Henry Ford II was >> So the deuce, as Henry Ford II was known, known, known, >> what a great racing moniker. The deuce. >> what a great racing moniker. The deuce. >> what a great racing moniker. The deuce. >> Right. Right. Oh, and Enzo's got some >> Right. Right. Oh, and Enzo's got some >> Right. Right. Oh, and Enzo's got some great ones, too. great ones, too. great ones, too. >> Yeah. I mean, ultimately in his older >> Yeah. I mean, ultimately in his older >> Yeah. I mean, ultimately in his older age, he becomes the grand old man. But age, he becomes the grand old man. But age, he becomes the grand old man. But what was he before that? what was he before that? what was he before that? >> Il Commandator >> Il Commandator >> Il Commandator and the Drake. and the Drake. and the Drake. >> Yes. >> Yes. >> Yes. >> He's he's got some great ones. So, the >> He's he's got some great ones. So, the >> He's he's got some great ones. So, the Deuce over in America gets word, weirdly Deuce over in America gets word, weirdly Deuce over in America gets word, weirdly through their German subsidiary that a through their German subsidiary that a through their German subsidiary that a mysterious letter has arrived from the mysterious letter has arrived from the mysterious letter has arrived from the German consulate in Milan that an German consulate in Milan that an German consulate in Milan that an internationally known Italian automobile internationally known Italian automobile internationally known Italian automobile factory was interested in selling. factory was interested in selling. factory was interested in selling. >> So, already you should kind of >> So, already you should kind of >> So, already you should kind of >> all right, there's something going on >> all right, there's something going on >> all right, there's something going on here. here. here. >> Be a little suspicious of how this >> Be a little suspicious of how this >> Be a little suspicious of how this information comes to Ford. But Ford is information comes to Ford. But Ford is information comes to Ford. But Ford is not. Ford just goes, "Oh, this is not. Ford just goes, "Oh, this is not. Ford just goes, "Oh, this is interesting. Let's try and figure out interesting. Let's try and figure out interesting. Let's try and figure out who's thinking about selling." Well, it who's thinking about selling." Well, it who's thinking about selling." Well, it doesn't take him long to figure out that doesn't take him long to figure out that doesn't take him long to figure out that it is Ferrari. it is Ferrari. it is Ferrari. >> It sounds so. >> It sounds so. >> It sounds so. >> Yes. They begin sort of a process to try >> Yes. They begin sort of a process to try >> Yes. They begin sort of a process to try to buy it. And Ford at this point has to buy it. And Ford at this point has to buy it. And Ford at this point has basically no racing capability of its basically no racing capability of its basically no racing capability of its own. This is an entirely new muscle for own. This is an entirely new muscle for own. This is an entirely new muscle for them. So, they make an offer to buy them. So, they make an offer to buy them. So, they make an offer to buy Ferrari. The asking price was originally Ferrari. The asking price was originally Ferrari. The asking price was originally $18 million, but somehow Ford manages to $18 million, but somehow Ford manages to $18 million, but somehow Ford manages to easily negotiate it down to 10 million. easily negotiate it down to 10 million. easily negotiate it down to 10 million. So again, a little mysterious, a little So again, a little mysterious, a little So again, a little mysterious, a little suspicious. Like maybe that was a little suspicious. Like maybe that was a little suspicious. Like maybe that was a little bit too easy. The agreement that is bit too easy. The agreement that is bit too easy. The agreement that is drafted and hits Enzo's desk, I mean, drafted and hits Enzo's desk, I mean, drafted and hits Enzo's desk, I mean, think about what could have been. This think about what could have been. This think about what could have been. This is the craziest pitch. There are two is the craziest pitch. There are two is the craziest pitch. There are two companies that are formed. One is called companies that are formed. One is called companies that are formed. One is called Ford Ferrari. It is 90% owned by Ford Ford Ferrari. It is 90% owned by Ford Ford Ferrari. It is 90% owned by Ford and it would make road cars. There's a and it would make road cars. There's a and it would make road cars. There's a second called Ferrari Ford that's 90% second called Ferrari Ford that's 90% second called Ferrari Ford that's 90% owned by Ferrari. That's the racing owned by Ferrari. That's the racing owned by Ferrari. That's the racing team. team. team. >> The racing team. Yep. >> The racing team. Yep. >> The racing team. Yep. >> So, this document is on Enzo's desk. He >> So, this document is on Enzo's desk. He >> So, this document is on Enzo's desk. He digs into it and he's looking through digs into it and he's looking through digs into it and he's looking through the fine print and he kind of realizes the fine print and he kind of realizes the fine print and he kind of realizes if I want to go racing and Ford does not if I want to go racing and Ford does not if I want to go racing and Ford does not want to go racing, who decides? And of want to go racing, who decides? And of want to go racing, who decides? And of course, Ford says, "Well, we're we're course, Ford says, "Well, we're we're course, Ford says, "Well, we're we're buying your company. we have the final buying your company. we have the final buying your company. we have the final say. say. say. >> Ultimately, I control the budget, >> Ultimately, I control the budget, >> Ultimately, I control the budget, >> right? So, Enzo, of course, hates this. >> right? So, Enzo, of course, hates this. >> right? So, Enzo, of course, hates this. And in dramatic fashion, he blows up the And in dramatic fashion, he blows up the And in dramatic fashion, he blows up the deal right at the finish line. All while deal right at the finish line. All while deal right at the finish line. All while the papers had been reporting, you know, the papers had been reporting, you know, the papers had been reporting, you know, the information leaked that the the information leaked that the the information leaked that the Americans were about to buy this Italian Americans were about to buy this Italian Americans were about to buy this Italian national treasure. Makes big headlines. national treasure. Makes big headlines. national treasure. Makes big headlines. When the deal blows up, you can imagine When the deal blows up, you can imagine When the deal blows up, you can imagine why this is in Ferrari's public why this is in Ferrari's public why this is in Ferrari's public relations interest based on everything relations interest based on everything relations interest based on everything that we've been describing about their that we've been describing about their that we've been describing about their business strategy. Of course, then Henry business strategy. Of course, then Henry business strategy. Of course, then Henry Ford II is absolutely incensed and he Ford II is absolutely incensed and he Ford II is absolutely incensed and he has this great quote. In May of 1963, he has this great quote. In May of 1963, he has this great quote. In May of 1963, he goes to his lieutenants and he says, "We goes to his lieutenants and he says, "We goes to his lieutenants and he says, "We will go to Lama and beat his ass. We're will go to Lama and beat his ass. We're will go to Lama and beat his ass. We're going to race him." going to race him." going to race him." >> And Enzo's probably like picking dumb >> And Enzo's probably like picking dumb >> And Enzo's probably like picking dumb Americans the whole time. Americans the whole time. Americans the whole time. >> Yes. There's this great quote in the >> Yes. There's this great quote in the >> Yes. There's this great quote in the Brock Yates book about Enzo and his Brock Yates book about Enzo and his Brock Yates book about Enzo and his opinion of the Americans which is opinion of the Americans which is opinion of the Americans which is something like he realized the something like he realized the something like he realized the fundamental truth to selling European fundamental truth to selling European fundamental truth to selling European luxury goods to Americans. Treat an luxury goods to Americans. Treat an luxury goods to Americans. Treat an American like a hick and you'll own him American like a hick and you'll own him American like a hick and you'll own him for life. for life. for life. >> O that hurts. >> O that hurts. >> O that hurts. >> Yeah, >> Yeah, >> Yeah, >> that hurts. So the whole Ford versus >> that hurts. So the whole Ford versus >> that hurts. So the whole Ford versus Ferrari movie is what happens next. And Ferrari movie is what happens next. And Ferrari movie is what happens next. And it's it's a great movie with Christian it's it's a great movie with Christian it's it's a great movie with Christian Bale and Matt Damon. And while it's of Bale and Matt Damon. And while it's of Bale and Matt Damon. And while it's of course dramatized, the bones of the course dramatized, the bones of the course dramatized, the bones of the story are actually pretty factually story are actually pretty factually story are actually pretty factually correct. So I highly recommend it. So correct. So I highly recommend it. So correct. So I highly recommend it. So what happens is Ford, who at this point what happens is Ford, who at this point what happens is Ford, who at this point says, "We got unlimited budget. We just says, "We got unlimited budget. We just says, "We got unlimited budget. We just got to go beat these guys." Enlist the got to go beat these guys." Enlist the got to go beat these guys." Enlist the help of Carol Shelby and the driver Ken help of Carol Shelby and the driver Ken help of Carol Shelby and the driver Ken Miles and sort of a real crack team of Miles and sort of a real crack team of Miles and sort of a real crack team of American mechanics and and racers. They American mechanics and and racers. They American mechanics and and racers. They actually do after a few years beat the actually do after a few years beat the actually do after a few years beat the Ferraris in the 1966 Lama race finishing Ferraris in the 1966 Lama race finishing Ferraris in the 1966 Lama race finishing with Fords in first, second, and third. with Fords in first, second, and third. with Fords in first, second, and third. It's this incredible story, but It's this incredible story, but It's this incredible story, but ultimately this is a complete sideshow. ultimately this is a complete sideshow. ultimately this is a complete sideshow. >> Yeah. What's what's really going on? >> Yeah. What's what's really going on? >> Yeah. What's what's really going on? What are Enzo's true intentions here? What are Enzo's true intentions here? What are Enzo's true intentions here? So, this is done, of course, to market So, this is done, of course, to market So, this is done, of course, to market the exclusivity of Ferrari and how the exclusivity of Ferrari and how the exclusivity of Ferrari and how they're the mark to beat and it's a they're the mark to beat and it's a they're the mark to beat and it's a great tactic to sell cars, but it's also great tactic to sell cars, but it's also great tactic to sell cars, but it's also to signal that Enzo is willing to do a to signal that Enzo is willing to do a to signal that Enzo is willing to do a deal. deal. deal. >> He is willing to sell the company. >> He is willing to sell the company. >> He is willing to sell the company. That's why he wanted all the papers That's why he wanted all the papers That's why he wanted all the papers writing about the fact that he was, but writing about the fact that he was, but writing about the fact that he was, but it had to be on his terms with the right it had to be on his terms with the right it had to be on his terms with the right partner and he had to be able to go partner and he had to be able to go partner and he had to be able to go racing. racing. racing. >> Yep. It's kind of like Enzo and Ferrari >> Yep. It's kind of like Enzo and Ferrari >> Yep. It's kind of like Enzo and Ferrari got a dual benefit out of this whole got a dual benefit out of this whole got a dual benefit out of this whole saga. one as you said like this is only saga. one as you said like this is only saga. one as you said like this is only great for the myth and the legend of great for the myth and the legend of great for the myth and the legend of Ferrari of like oh we were going to sell Ferrari of like oh we were going to sell Ferrari of like oh we were going to sell to these big ugly Americans but they to these big ugly Americans but they to these big ugly Americans but they wanted to take our racing from it and we wanted to take our racing from it and we wanted to take our racing from it and we said no you'll have to kill us in order said no you'll have to kill us in order said no you'll have to kill us in order to take him to take him to take him >> exactly and it is this Italian national >> exactly and it is this Italian national >> exactly and it is this Italian national treasure I mean that's real that is the treasure I mean that's real that is the treasure I mean that's real that is the cultural export of Italy cultural export of Italy cultural export of Italy >> yep and it was a way to signal to the >> yep and it was a way to signal to the >> yep and it was a way to signal to the market like hey I might be open to a market like hey I might be open to a market like hey I might be open to a deal deal deal >> yes so any last little misconceptions >> yes so any last little misconceptions >> yes so any last little misconceptions you have about Enzo Ferrari not being an you have about Enzo Ferrari not being an you have about Enzo Ferrari not being an excellent business person and negotiator excellent business person and negotiator excellent business person and negotiator that should be completely dispelled at that should be completely dispelled at that should be completely dispelled at this point. So David, what happens next? this point. So David, what happens next? this point. So David, what happens next? So all the Ford versus Ferrari drama was So all the Ford versus Ferrari drama was So all the Ford versus Ferrari drama was going down between the years of 1963 and going down between the years of 1963 and going down between the years of 1963 and call it 19667. call it 19667. call it 19667. >> Yep. Through all this, Enzo is doing >> Yep. Through all this, Enzo is doing >> Yep. Through all this, Enzo is doing great. He's in his late 60s at this great. He's in his late 60s at this great. He's in his late 60s at this point, but he's loving life. As much as point, but he's loving life. As much as point, but he's loving life. As much as Enzo is capable of loving life, he's Enzo is capable of loving life, he's Enzo is capable of loving life, he's healthy. He's reinvigorated by this healthy. He's reinvigorated by this healthy. He's reinvigorated by this battle. Everything's going great. And battle. Everything's going great. And battle. Everything's going great. And then after all the Ford drama in 1968, then after all the Ford drama in 1968, then after all the Ford drama in 1968, Enzo contracts kidney disease and it's Enzo contracts kidney disease and it's Enzo contracts kidney disease and it's pretty bad. Like he thinks this is pretty bad. Like he thinks this is pretty bad. Like he thinks this is probably actually going to be the end. probably actually going to be the end. probably actually going to be the end. >> And statistically, he was right. >> And statistically, he was right. >> And statistically, he was right. >> Yeah. And it gets so bad, as we'll see >> Yeah. And it gets so bad, as we'll see >> Yeah. And it gets so bad, as we'll see in a moment, that shortly after this in in a moment, that shortly after this in in a moment, that shortly after this in 1970, he goes into organ failure and has 1970, he goes into organ failure and has 1970, he goes into organ failure and has to be hospitalized for months. Like he to be hospitalized for months. Like he to be hospitalized for months. Like he he really should have died at this point he really should have died at this point he really should have died at this point in time. But as always, Forenzo, fate in time. But as always, Forenzo, fate in time. But as always, Forenzo, fate has other plans. So once he comes down has other plans. So once he comes down has other plans. So once he comes down with the disease, he gets serious about with the disease, he gets serious about with the disease, he gets serious about actually selling the company. And he actually selling the company. And he actually selling the company. And he sniffs around. He talks to his old sniffs around. He talks to his old sniffs around. He talks to his old buddies at Alfa Romeo. And they sort of buddies at Alfa Romeo. And they sort of buddies at Alfa Romeo. And they sort of work on a deal, not to Enzo's liking. work on a deal, not to Enzo's liking. work on a deal, not to Enzo's liking. Really, at the end of the day though, Really, at the end of the day though, Really, at the end of the day though, there's only one correct buyer for there's only one correct buyer for there's only one correct buyer for Ferrari, and it's Giani Anelli and the Ferrari, and it's Giani Anelli and the Ferrari, and it's Giani Anelli and the Fiat Empire. So in 1969, Enzo strikes a Fiat Empire. So in 1969, Enzo strikes a Fiat Empire. So in 1969, Enzo strikes a deal with Giani to sell 50% of Ferrari deal with Giani to sell 50% of Ferrari deal with Giani to sell 50% of Ferrari to Fiat immediately there in 1969 to Fiat immediately there in 1969 to Fiat immediately there in 1969 with a secret agreement that triggered with a secret agreement that triggered with a secret agreement that triggered upon Enzo's death, which again he thinks upon Enzo's death, which again he thinks upon Enzo's death, which again he thinks is imminent, Fiat will acquire another is imminent, Fiat will acquire another is imminent, Fiat will acquire another 40%, 40%, 40%, taking their stake to 90%. taking their stake to 90%. taking their stake to 90%. and 10% of the company will transfer to and 10% of the company will transfer to and 10% of the company will transfer to Pierro. Once Enzo dies, his plan is to Pierro. Once Enzo dies, his plan is to Pierro. Once Enzo dies, his plan is to as much as he can legitimize Pierro, as much as he can legitimize Pierro, as much as he can legitimize Pierro, give him the Ferrari name and give him a give him the Ferrari name and give him a give him the Ferrari name and give him a 10% stake in the company so that the 10% stake in the company so that the 10% stake in the company so that the bloodline to some extent as much as it bloodline to some extent as much as it bloodline to some extent as much as it possibly can in that time and place will possibly can in that time and place will possibly can in that time and place will continue. And part of the deal with continue. And part of the deal with continue. And part of the deal with Fiat, just like he wanted with Ford, is Fiat, just like he wanted with Ford, is Fiat, just like he wanted with Ford, is that Fiat, you can take control of the that Fiat, you can take control of the that Fiat, you can take control of the road car business, but I'm going to road car business, but I'm going to road car business, but I'm going to retain final authority over racing. You retain final authority over racing. You retain final authority over racing. You know, I know that my end is near and I know, I know that my end is near and I know, I know that my end is near and I want to spend my last days on this earth want to spend my last days on this earth want to spend my last days on this earth doing what I love, which is running the doing what I love, which is running the doing what I love, which is running the racing team. The incredible irony was racing team. The incredible irony was racing team. The incredible irony was the end was nowhere near the end was nowhere near the end was nowhere near >> nowhere near. And actually the world >> nowhere near. And actually the world >> nowhere near. And actually the world would change enough between this moment would change enough between this moment would change enough between this moment and when he would eventually pass that and when he would eventually pass that and when he would eventually pass that Pierro is able to take over as Pierro Pierro is able to take over as Pierro Pierro is able to take over as Pierro Ferrari son of Enzo. Ferrari son of Enzo. Ferrari son of Enzo. >> Yes. Yes. Yes. >> Yes. Yes. Yes. >> Yes. Yes. Yes. >> So how many years was it between 1969 is >> So how many years was it between 1969 is >> So how many years was it between 1969 is when the 50% sale to Fiat. He doesn't when the 50% sale to Fiat. He doesn't when the 50% sale to Fiat. He doesn't pass away until pass away until pass away until >> he lives another 20 years. Yeah. 19 >> he lives another 20 years. Yeah. 19 >> he lives another 20 years. Yeah. 19 years. years. years. >> 1988. Like he lives until I was born. >> 1988. Like he lives until I was born. >> 1988. Like he lives until I was born. Yes. Is is where's the sort of the end Yes. Is is where's the sort of the end Yes. Is is where's the sort of the end of his life. Well, he lives to launch of his life. Well, he lives to launch of his life. Well, he lives to launch the F40, which is the last car that Enzo the F40, which is the last car that Enzo the F40, which is the last car that Enzo launches. launches. launches. >> So, there are two really interesting >> So, there are two really interesting >> So, there are two really interesting things about this deal. One, Enzo things about this deal. One, Enzo things about this deal. One, Enzo started his career by applying for a job started his career by applying for a job started his career by applying for a job at Fiat and was turned down. at Fiat and was turned down. at Fiat and was turned down. >> So, that's a total full circle moment >> So, that's a total full circle moment >> So, that's a total full circle moment there. The other full circle moment is there. The other full circle moment is there. The other full circle moment is that Giani Anelli was one of the very that Giani Anelli was one of the very that Giani Anelli was one of the very first Ferrari customers of their road first Ferrari customers of their road first Ferrari customers of their road cars. It's amazing. And when you look at cars. It's amazing. And when you look at cars. It's amazing. And when you look at the actual deal, this this blew my mind, the actual deal, this this blew my mind, the actual deal, this this blew my mind, David, if you do the LRA to US dollar David, if you do the LRA to US dollar David, if you do the LRA to US dollar exchange rate in 1969, exchange rate in 1969, exchange rate in 1969, they ended up selling half the company they ended up selling half the company they ended up selling half the company for a little under $3.5 million, valuing for a little under $3.5 million, valuing for a little under $3.5 million, valuing all of Ferrari at 6.8 million. all of Ferrari at 6.8 million. all of Ferrari at 6.8 million. >> Wow. Oh my goodness. >> Wow. Oh my goodness. >> Wow. Oh my goodness. >> Enzo really wanted to do this deal. I >> Enzo really wanted to do this deal. I >> Enzo really wanted to do this deal. I think he determined at this point in think he determined at this point in think he determined at this point in history. I'm I've not seen this written history. I'm I've not seen this written history. I'm I've not seen this written in anywhere, but I'm reading into this, in anywhere, but I'm reading into this, in anywhere, but I'm reading into this, you know, even Ford thought it was worth you know, even Ford thought it was worth you know, even Ford thought it was worth somewhere between 10 and 18 million somewhere between 10 and 18 million somewhere between 10 and 18 million earlier in the decade. Enzo basically earlier in the decade. Enzo basically earlier in the decade. Enzo basically had one bidder had one bidder had one bidder >> and he thought, I have no exit path >> and he thought, I have no exit path >> and he thought, I have no exit path other than this. This needs to land with other than this. This needs to land with other than this. This needs to land with Fiat and whatever the price is, it is. Fiat and whatever the price is, it is. Fiat and whatever the price is, it is. And so I think Fiat basically got a And so I think Fiat basically got a And so I think Fiat basically got a steal on this because it needed to stay steal on this because it needed to stay steal on this because it needed to stay in Italy and it needed to go to a strong in Italy and it needed to go to a strong in Italy and it needed to go to a strong thriving car company thriving car company thriving car company >> car company and and family in the >> car company and and family in the >> car company and and family in the Yellies. Yes. Yellies. Yes. Yellies. Yes. >> Interesting. Well, all of this just >> Interesting. Well, all of this just >> Interesting. Well, all of this just underscores the most critical point underscores the most critical point underscores the most critical point here. I think this is probably the here. I think this is probably the here. I think this is probably the moment in history where the false legend moment in history where the false legend moment in history where the false legend that Enzo only cared about racing and that Enzo only cared about racing and that Enzo only cared about racing and wasn't a real entrepreneur emerges from. wasn't a real entrepreneur emerges from. wasn't a real entrepreneur emerges from. Because if you look at the fact pattern, Because if you look at the fact pattern, Because if you look at the fact pattern, it makes sense here. like he wanted to it makes sense here. like he wanted to it makes sense here. like he wanted to spend his last days racing. He did this spend his last days racing. He did this spend his last days racing. He did this not great deal with Fiat. The only not great deal with Fiat. The only not great deal with Fiat. The only reason this happened is cuz he truly reason this happened is cuz he truly reason this happened is cuz he truly thought he was about to die. Y thought he was about to die. Y thought he was about to die. Y >> and he really did just want to spend his >> and he really did just want to spend his >> and he really did just want to spend his last days on Earth running the racing last days on Earth running the racing last days on Earth running the racing team and he wanted to ensure continuity team and he wanted to ensure continuity team and he wanted to ensure continuity for the company and a role for his son for the company and a role for his son for the company and a role for his son Pierro going forward. That's what Pierro going forward. That's what Pierro going forward. That's what happened here. The state of Ferrari is happened here. The state of Ferrari is happened here. The state of Ferrari is kind of grim at this point too. The kind of grim at this point too. The kind of grim at this point too. The factory needed investment. The racing factory needed investment. The racing factory needed investment. The racing program was unbelievably expensive. program was unbelievably expensive. program was unbelievably expensive. They're starting to face very real They're starting to face very real They're starting to face very real competition from Lamborghini. They were competition from Lamborghini. They were competition from Lamborghini. They were founded in 1963 specifically to founded in 1963 specifically to founded in 1963 specifically to challenge Ferrari, at least Lamborghini challenge Ferrari, at least Lamborghini challenge Ferrari, at least Lamborghini Motors, which we'll come back to. And Motors, which we'll come back to. And Motors, which we'll come back to. And there was manufacturing headaches there was manufacturing headaches there was manufacturing headaches happening because of Italian labor happening because of Italian labor happening because of Italian labor unrest. And so asking someone to take on unrest. And so asking someone to take on unrest. And so asking someone to take on Ferrari's operations was a tall order in Ferrari's operations was a tall order in Ferrari's operations was a tall order in addition to needing to sell. addition to needing to sell. addition to needing to sell. >> Yes. I'm glad you brought up >> Yes. I'm glad you brought up >> Yes. I'm glad you brought up Lamborghini. Lamborghini had just Lamborghini. Lamborghini had just Lamborghini. Lamborghini had just launched the Mirror, the Lamborghini launched the Mirror, the Lamborghini launched the Mirror, the Lamborghini Mirror at this point in time, which was Mirror at this point in time, which was Mirror at this point in time, which was a truly excellent car. Y like a better a truly excellent car. Y like a better a truly excellent car. Y like a better Ferrari than a Ferrari at the time. So Ferrari than a Ferrari at the time. So Ferrari than a Ferrari at the time. So there was real headwinds in the there was real headwinds in the there was real headwinds in the business. And this is really why Fiat business. And this is really why Fiat business. And this is really why Fiat and Giani and Yelli had to be the buyer and Giani and Yelli had to be the buyer and Giani and Yelli had to be the buyer to store Ferrari through this period. to store Ferrari through this period. to store Ferrari through this period. Now, as we said earlier, fate had plans Now, as we said earlier, fate had plans Now, as we said earlier, fate had plans other than death for Enzo. Right after other than death for Enzo. Right after other than death for Enzo. Right after the sale in 1970, Enzo does go into the sale in 1970, Enzo does go into the sale in 1970, Enzo does go into organ failure and is hospitalized. He's organ failure and is hospitalized. He's organ failure and is hospitalized. He's away from the business for many months, away from the business for many months, away from the business for many months, which really makes it incredibly which really makes it incredibly which really makes it incredibly fortuitous that he had already done the fortuitous that he had already done the fortuitous that he had already done the deal with Fiat. So, there was management deal with Fiat. So, there was management deal with Fiat. So, there was management to keep the company running while Enzo to keep the company running while Enzo to keep the company running while Enzo is away. Miraculously though, he is away. Miraculously though, he is away. Miraculously though, he recovers. recovers. recovers. And in the spring of 1971, And in the spring of 1971, And in the spring of 1971, Enzo, the grand old man, is back in Enzo, the grand old man, is back in Enzo, the grand old man, is back in Marinelo at the head of Ferrari, but Marinelo at the head of Ferrari, but Marinelo at the head of Ferrari, but it's a Ferrari that he barely recognizes it's a Ferrari that he barely recognizes it's a Ferrari that he barely recognizes from when he left. Viet has come in. And from when he left. Viet has come in. And from when he left. Viet has come in. And this is where he intersects with another this is where he intersects with another this is where he intersects with another young man who would go on to carry the young man who would go on to carry the young man who would go on to carry the legacy and the spirit of Ferrari for legacy and the spirit of Ferrari for legacy and the spirit of Ferrari for really the next 40 years and into the really the next 40 years and into the really the next 40 years and into the next generation and build Ferrari what next generation and build Ferrari what next generation and build Ferrari what it is today it is today it is today >> with a break in between >> with a break in between >> with a break in between >> with a little break in between. Luca de >> with a little break in between. Luca de >> with a little break in between. Luca de Monteolo. Monteolo. Monteolo. But before we tell Luca's story, now is But before we tell Luca's story, now is But before we tell Luca's story, now is a great time to thank our longtime a great time to thank our longtime a great time to thank our longtime friend of the show, Service Now. friend of the show, Service Now. friend of the show, Service Now. >> Yes, a year ago, nobody was talking >> Yes, a year ago, nobody was talking >> Yes, a year ago, nobody was talking about AI agents. And now, if you are a about AI agents. And now, if you are a about AI agents. And now, if you are a large enterprise, you probably have AI large enterprise, you probably have AI large enterprise, you probably have AI everywhere. Co-pilots and models and everywhere. Co-pilots and models and everywhere. Co-pilots and models and agents all spread across every team, agents all spread across every team, agents all spread across every team, which sounds great until you realize which sounds great until you realize which sounds great until you realize none of it is really connected. none of it is really connected. none of it is really connected. >> Exactly. This actually reminds me of >> Exactly. This actually reminds me of >> Exactly. This actually reminds me of Ferrari on race day. It's not just about Ferrari on race day. It's not just about Ferrari on race day. It's not just about having the fastest car. It's about having the fastest car. It's about having the fastest car. It's about coordinating thousands of signals across coordinating thousands of signals across coordinating thousands of signals across tires and fuel and brakes and more, all tires and fuel and brakes and more, all tires and fuel and brakes and more, all in real time to make the right decision. in real time to make the right decision. in real time to make the right decision. That is where companies are with AI That is where companies are with AI That is where companies are with AI right now. Tons of intelligence, but not right now. Tons of intelligence, but not right now. Tons of intelligence, but not a lot of control. And that's the shift. a lot of control. And that's the shift. a lot of control. And that's the shift. Intelligence is becoming a commodity. Intelligence is becoming a commodity. Intelligence is becoming a commodity. The hard part now is making all of that The hard part now is making all of that The hard part now is making all of that AI actually work together inside a real AI actually work together inside a real AI actually work together inside a real organization securely, reliably, and in organization securely, reliably, and in organization securely, reliably, and in sync. That's what Service Now has been sync. That's what Service Now has been sync. That's what Service Now has been building for over 20 years. Today, they building for over 20 years. Today, they building for over 20 years. Today, they run the workflows behind more than 85% run the workflows behind more than 85% run the workflows behind more than 85% of the Fortune 500, which amounts to of the Fortune 500, which amounts to of the Fortune 500, which amounts to over 80 billion workflows a year. So, in over 80 billion workflows a year. So, in over 80 billion workflows a year. So, in a very real way, a big part of the world a very real way, a big part of the world a very real way, a big part of the world already works with Service Now. And with already works with Service Now. And with already works with Service Now. And with their AI control tower, they're giving their AI control tower, they're giving their AI control tower, they're giving companies a single place to manage all companies a single place to manage all companies a single place to manage all of it. Not just agents, but every AI of it. Not just agents, but every AI of it. Not just agents, but every AI system across the business. system across the business. system across the business. >> Yes. So, listeners, it's not just about >> Yes. So, listeners, it's not just about >> Yes. So, listeners, it's not just about AI that thinks. It's about AI that AI that thinks. It's about AI that AI that thinks. It's about AI that actually works. If you're thinking about actually works. If you're thinking about actually works. If you're thinking about how AI really operates at scale, go how AI really operates at scale, go how AI really operates at scale, go check out service.com/acquired check out service.com/acquired check out service.com/acquired and just tell them that Ben and David and just tell them that Ben and David and just tell them that Ben and David sent you. Okay. So, David, Luca de sent you. Okay. So, David, Luca de sent you. Okay. So, David, Luca de Montazolo, at least the first act of Montazolo, at least the first act of Montazolo, at least the first act of Luca. Anyway, Luca. Anyway, Luca. Anyway, >> of Luca's story. Yes. So in 1971 when >> of Luca's story. Yes. So in 1971 when >> of Luca's story. Yes. So in 1971 when Enzo gets back to the office in Marinelo Enzo gets back to the office in Marinelo Enzo gets back to the office in Marinelo after his hospitalization, he tunes in after his hospitalization, he tunes in after his hospitalization, he tunes in to a fateful talk radio show where he to a fateful talk radio show where he to a fateful talk radio show where he discovers a young man who will bring a discovers a young man who will bring a discovers a young man who will bring a breath of fresh air into his life. Luca. breath of fresh air into his life. Luca. breath of fresh air into his life. Luca. So Monteolo to many of you listening is So Monteolo to many of you listening is So Monteolo to many of you listening is already a living legend. I mean, as much already a living legend. I mean, as much already a living legend. I mean, as much as anyone in Ferrari history besides as anyone in Ferrari history besides as anyone in Ferrari history besides Enzo, Luca de Montazallo is Ferrari. And Enzo, Luca de Montazallo is Ferrari. And Enzo, Luca de Montazallo is Ferrari. And as I mentioned, I was very lucky to get as I mentioned, I was very lucky to get as I mentioned, I was very lucky to get to speak with him for a few hours and to speak with him for a few hours and to speak with him for a few hours and research for this episode. And I also research for this episode. And I also research for this episode. And I also got to watch this great movie about him got to watch this great movie about him got to watch this great movie about him that has just been made. It's called that has just been made. It's called that has just been made. It's called Seeing Red. It's with Chris Harris, the Seeing Red. It's with Chris Harris, the Seeing Red. It's with Chris Harris, the Top Gear presenter. Top Gear presenter. Top Gear presenter. >> Yeah. How did you get that? Cuz that's >> Yeah. How did you get that? Cuz that's >> Yeah. How did you get that? Cuz that's not out yet. not out yet. not out yet. >> Yeah, it's not distributed outside of >> Yeah, it's not distributed outside of >> Yeah, it's not distributed outside of Italy yet, but I got a link to watch it. Italy yet, but I got a link to watch it. Italy yet, but I got a link to watch it. It's directed and produced by Manish It's directed and produced by Manish It's directed and produced by Manish Pandy who wrote and produced Senna, the Pandy who wrote and produced Senna, the Pandy who wrote and produced Senna, the Senna movie. It's really, really Senna movie. It's really, really Senna movie. It's really, really excellent when it's available in excellent when it's available in excellent when it's available in whatever geography you live in. Very, whatever geography you live in. Very, whatever geography you live in. Very, very, very much worth watching. So Luca very, very much worth watching. So Luca very, very much worth watching. So Luca was born in 1947, the same year that the was born in 1947, the same year that the was born in 1947, the same year that the modern Ferrari commenced operations. modern Ferrari commenced operations. modern Ferrari commenced operations. Very poetic in Bolognia in Italy. But he Very poetic in Bolognia in Italy. But he Very poetic in Bolognia in Italy. But he moved to Rome as a child where his best moved to Rome as a child where his best moved to Rome as a child where his best friend growing up is Cristiano Ratti who friend growing up is Cristiano Ratti who friend growing up is Cristiano Ratti who is the son of Susanna Anelli, Gianna is the son of Susanna Anelli, Gianna is the son of Susanna Anelli, Gianna Anelli's sister. So Luca grows up almost Anelli's sister. So Luca grows up almost Anelli's sister. So Luca grows up almost like a member of the Anelli family. his like a member of the Anelli family. his like a member of the Anelli family. his best friend is, you know, one of the best friend is, you know, one of the best friend is, you know, one of the Anelli heirs and Luca comes to develop a Anelli heirs and Luca comes to develop a Anelli heirs and Luca comes to develop a close relationship with Giani and he close relationship with Giani and he close relationship with Giani and he would say Giani was like a combination would say Giani was like a combination would say Giani was like a combination of an older brother and a father for me. of an older brother and a father for me. of an older brother and a father for me. So in 1970, young Luca moves to New York So in 1970, young Luca moves to New York So in 1970, young Luca moves to New York City to go off to study international City to go off to study international City to go off to study international law at Colia Law School. Around the same law at Colia Law School. Around the same law at Colia Law School. Around the same time though, he's also pursuing another time though, he's also pursuing another time though, he's also pursuing another career as a rally car driver. career as a rally car driver. career as a rally car driver. >> Really? >> Really? >> Really? >> Like a rally car driver? Right. Yes. >> Like a rally car driver? Right. Yes. >> Like a rally car driver? Right. Yes. Yes. I don't think I've ever seen a Yes. I don't think I've ever seen a Yes. I don't think I've ever seen a Ferrari rally car. Ferrari rally car. Ferrari rally car. >> I don't think these two things have ever >> I don't think these two things have ever >> I don't think these two things have ever intersected. These universes are about intersected. These universes are about intersected. These universes are about as far apart as you could possibly get. as far apart as you could possibly get. as far apart as you could possibly get. >> But this is how Luca starts in >> But this is how Luca starts in >> But this is how Luca starts in motorsport. And so that one fateful day motorsport. And so that one fateful day motorsport. And so that one fateful day in 1971, Luca, the rally car driver, is in 1971, Luca, the rally car driver, is in 1971, Luca, the rally car driver, is a guest on this popular call-in talk a guest on this popular call-in talk a guest on this popular call-in talk radio show and an audience member calls radio show and an audience member calls radio show and an audience member calls in to basically accost Luca and chastise in to basically accost Luca and chastise in to basically accost Luca and chastise and criticize the entire motorsport and criticize the entire motorsport and criticize the entire motorsport industry. kind of much like the Pope in industry. kind of much like the Pope in industry. kind of much like the Pope in 1957 starts just laying into Luca this 1957 starts just laying into Luca this 1957 starts just laying into Luca this caller talking about how motor racing is caller talking about how motor racing is caller talking about how motor racing is evil, it's dangerous, it's bad for the evil, it's dangerous, it's bad for the evil, it's dangerous, it's bad for the environment, like this is a sport just environment, like this is a sport just environment, like this is a sport just for rich people. It has no value in for rich people. It has no value in for rich people. It has no value in society. And Luca in passion rises to society. And Luca in passion rises to society. And Luca in passion rises to the occasion and he gives this the occasion and he gives this the occasion and he gives this passionate defense of motor racing. He passionate defense of motor racing. He passionate defense of motor racing. He speaks eloquently, poetically. He shuts speaks eloquently, poetically. He shuts speaks eloquently, poetically. He shuts down this caller and really gives this down this caller and really gives this down this caller and really gives this incredible response. And who happens to incredible response. And who happens to incredible response. And who happens to be listening to the program but Enzo be listening to the program but Enzo be listening to the program but Enzo Ferrari. Ferrari. Ferrari. >> Unbelievable. >> Unbelievable. >> Unbelievable. >> You just can't make this stuff up. You >> You just can't make this stuff up. You >> You just can't make this stuff up. You really cannot make this up. really cannot make this up. really cannot make this up. >> And he's kind of this perfect person >> And he's kind of this perfect person >> And he's kind of this perfect person because if Enzo is gonna take a liking because if Enzo is gonna take a liking because if Enzo is gonna take a liking to him here, I don't know what you're to him here, I don't know what you're to him here, I don't know what you're about to say, but if he's kind of Enzo's about to say, but if he's kind of Enzo's about to say, but if he's kind of Enzo's guy, but he's also a pseudo family guy, but he's also a pseudo family guy, but he's also a pseudo family member of the Enelli family. It's kind member of the Enelli family. It's kind member of the Enelli family. It's kind of this perfect candidate pool of one. of this perfect candidate pool of one. of this perfect candidate pool of one. >> Yes. So Enzo calls up the radio station >> Yes. So Enzo calls up the radio station >> Yes. So Enzo calls up the radio station and he's like, I got to know who this and he's like, I got to know who this and he's like, I got to know who this kid is. I want to get in touch with him. kid is. I want to get in touch with him. kid is. I want to get in touch with him. Who is this rally car driver? And Who is this rally car driver? And Who is this rally car driver? And literally the quote, Luca told me that literally the quote, Luca told me that literally the quote, Luca told me that this is what Enzo told the radio this is what Enzo told the radio this is what Enzo told the radio station. Enzo said, "This boy has big station. Enzo said, "This boy has big station. Enzo said, "This boy has big balls. balls. balls. I want to talk to him." Wow. I want to talk to him." Wow. I want to talk to him." Wow. So Luca and Enzo meet and Enzo says to So Luca and Enzo meet and Enzo says to So Luca and Enzo meet and Enzo says to him, "I like you. You know, you've got him, "I like you. You know, you've got him, "I like you. You know, you've got big balls. big balls. big balls. I've been away from my business for too I've been away from my business for too I've been away from my business for too long and I need some help. What I really long and I need some help. What I really long and I need some help. What I really need, I need an assistant, but I need a need, I need an assistant, but I need a need, I need an assistant, but I need a spy who can go throughout the spy who can go throughout the spy who can go throughout the organization and report back to me what organization and report back to me what organization and report back to me what is actually going on in my company. is actually going on in my company. is actually going on in my company. >> You don't have to ask Luca twice here. >> You don't have to ask Luca twice here. >> You don't have to ask Luca twice here. He takes the opportunity and goes to He takes the opportunity and goes to He takes the opportunity and goes to work for Enzo as his assistant here in work for Enzo as his assistant here in work for Enzo as his assistant here in the early '7s. Now, of course, at some the early '7s. Now, of course, at some the early '7s. Now, of course, at some point along the way here, Enzo also point along the way here, Enzo also point along the way here, Enzo also learns of Luca's connection to the learns of Luca's connection to the learns of Luca's connection to the Enelli family, which only makes him even Enelli family, which only makes him even Enelli family, which only makes him even more attractive. He's like, "Oh, now I more attractive. He's like, "Oh, now I more attractive. He's like, "Oh, now I can have a spy at Viad in the Anelli can have a spy at Viad in the Anelli can have a spy at Viad in the Anelli family, too." So, great. family, too." So, great. family, too." So, great. >> Right. So, the first thing that Enzo >> Right. So, the first thing that Enzo >> Right. So, the first thing that Enzo assigns him to do is go figure out assigns him to do is go figure out assigns him to do is go figure out what's going on with sales of the road what's going on with sales of the road what's going on with sales of the road car business. Like, go spend some time car business. Like, go spend some time car business. Like, go spend some time with the distribution network. with the distribution network. with the distribution network. understand who the clients are. understand who the clients are. understand who the clients are. Understand who the collectors are, who Understand who the collectors are, who Understand who the collectors are, who are the dealers. So, Luca does. He comes are the dealers. So, Luca does. He comes are the dealers. So, Luca does. He comes back, he reports, it's not good. As you back, he reports, it's not good. As you back, he reports, it's not good. As you were alluding to, Ben, this is a pretty were alluding to, Ben, this is a pretty were alluding to, Ben, this is a pretty tough time for Ferrari here in the 70s. tough time for Ferrari here in the 70s. tough time for Ferrari here in the 70s. The oil crisis is underway. Any car with The oil crisis is underway. Any car with The oil crisis is underway. Any car with an engine size over 2 L was taxed at an an engine size over 2 L was taxed at an an engine size over 2 L was taxed at an incremental 40% in Italy and throughout incremental 40% in Italy and throughout incremental 40% in Italy and throughout much of Europe. The whole sports car much of Europe. The whole sports car much of Europe. The whole sports car industry is basically in the dumps. So industry is basically in the dumps. So industry is basically in the dumps. So Luca reports all this back to Enzo and Luca reports all this back to Enzo and Luca reports all this back to Enzo and Enzo's like, "Okay, great. You passed Enzo's like, "Okay, great. You passed Enzo's like, "Okay, great. You passed your first test. Things aren't good on your first test. Things aren't good on your first test. Things aren't good on the road car side of the business, but the road car side of the business, but the road car side of the business, but like at the end of the day, that's like at the end of the day, that's like at the end of the day, that's Fiat's problem now." Okay, my real Fiat's problem now." Okay, my real Fiat's problem now." Okay, my real assignment for you. I want you to go to assignment for you. I want you to go to assignment for you. I want you to go to the next Formula 1 race. Just go just the next Formula 1 race. Just go just the next Formula 1 race. Just go just observe. Just tell me what you think is observe. Just tell me what you think is observe. Just tell me what you think is going on with the team. Yep. Now, at going on with the team. Yep. Now, at going on with the team. Yep. Now, at this point here in like 197374, this point here in like 197374, this point here in like 197374, things are really bad for the Ferrari F1 things are really bad for the Ferrari F1 things are really bad for the Ferrari F1 team. They haven't won a drivers or team. They haven't won a drivers or team. They haven't won a drivers or constructor's championship for 10 years. constructor's championship for 10 years. constructor's championship for 10 years. A historic drought for Ferrari. So, Luca A historic drought for Ferrari. So, Luca A historic drought for Ferrari. So, Luca goes, he observes a race and he calls goes, he observes a race and he calls goes, he observes a race and he calls Enzo up and he says, "Hey, look, I Enzo up and he says, "Hey, look, I Enzo up and he says, "Hey, look, I advise that we just take the cars home advise that we just take the cars home advise that we just take the cars home and we don't race them. We have no and we don't race them. We have no and we don't race them. We have no chance of winning." O" And Enzo's like, chance of winning." O" And Enzo's like, chance of winning." O" And Enzo's like, "Okay, okay. Well, we're not going to "Okay, okay. Well, we're not going to "Okay, okay. Well, we're not going to take them home, but we need to get take them home, but we need to get take them home, but we need to get competitive again. What What are we competitive again. What What are we competitive again. What What are we going to do? And Luca's like, the issue going to do? And Luca's like, the issue going to do? And Luca's like, the issue is that the sport has changed. This is that the sport has changed. This is that the sport has changed. This isn't just an engine sport anymore or isn't just an engine sport anymore or isn't just an engine sport anymore or power. power. power. >> We're now in the era of Colin Chapman >> We're now in the era of Colin Chapman >> We're now in the era of Colin Chapman and Lotus and and Lotus and and Lotus and >> aerodynamics. >> aerodynamics. >> aerodynamics. >> Aerodynamics and the chassis is way more >> Aerodynamics and the chassis is way more >> Aerodynamics and the chassis is way more important. And the Ferrari team is stuck important. And the Ferrari team is stuck important. And the Ferrari team is stuck focused 100% on the engine. Like, we focused 100% on the engine. Like, we focused 100% on the engine. Like, we have no chance of winning. So Enzo says, have no chance of winning. So Enzo says, have no chance of winning. So Enzo says, "Okay, here's what I'm going to do. I'm "Okay, here's what I'm going to do. I'm "Okay, here's what I'm going to do. I'm going to make you, Luca, the team going to make you, Luca, the team going to make you, Luca, the team manager of the Ferrari Formula 1 team, manager of the Ferrari Formula 1 team, manager of the Ferrari Formula 1 team, and your mandate is to fix this. I can't and your mandate is to fix this. I can't and your mandate is to fix this. I can't fix. I'm Enzo. I'm like the engine guy. fix. I'm Enzo. I'm like the engine guy. fix. I'm Enzo. I'm like the engine guy. You go in, you can be the new blood. You You go in, you can be the new blood. You You go in, you can be the new blood. You can fix this." can fix this." can fix this." >> And this is amazing because this is >> And this is amazing because this is >> And this is amazing because this is quite the quick promotion for Luca. I quite the quick promotion for Luca. I quite the quick promotion for Luca. I mean, it's like a guy he found that he mean, it's like a guy he found that he mean, it's like a guy he found that he brought in to be his assistant. I mean, brought in to be his assistant. I mean, brought in to be his assistant. I mean, he was much more than an assistant, but he was much more than an assistant, but he was much more than an assistant, but that was his title. that was his title. that was his title. >> Yeah. He's not even 30 years old yet. >> Yeah. He's not even 30 years old yet. >> Yeah. He's not even 30 years old yet. >> Then suddenly, you're managing the >> Then suddenly, you're managing the >> Then suddenly, you're managing the Formula 1 team, which historically is Formula 1 team, which historically is Formula 1 team, which historically is the driver that creates all the lust the driver that creates all the lust the driver that creates all the lust that sells the cars. Like, this needs to that sells the cars. Like, this needs to that sells the cars. Like, this needs to start working. start working. start working. >> Yes. Oh, Luca has this great great quote >> Yes. Oh, Luca has this great great quote >> Yes. Oh, Luca has this great great quote on the nature of the connection between on the nature of the connection between on the nature of the connection between Ferrari's performance on the track and Ferrari's performance on the track and Ferrari's performance on the track and the business selling road cars. He says the business selling road cars. He says the business selling road cars. He says there is not a direct correlation there is not a direct correlation there is not a direct correlation between Ferrari victories on the track between Ferrari victories on the track between Ferrari victories on the track and the number of cars that you can and the number of cars that you can and the number of cars that you can sell. But if for many years you do not sell. But if for many years you do not sell. But if for many years you do not win, it means that you do not add wood win, it means that you do not add wood win, it means that you do not add wood to the fire of the myth. to the fire of the myth. to the fire of the myth. >> The myth of Ferrari is based on >> The myth of Ferrari is based on >> The myth of Ferrari is based on competition on cars. In the competition, competition on cars. In the competition, competition on cars. In the competition, you can win or you can lose, but you you can win or you can lose, but you you can win or you can lose, but you cannot only lose. It's so perfect. cannot only lose. It's so perfect. cannot only lose. It's so perfect. >> It is perfect. So Luca comes in as team >> It is perfect. So Luca comes in as team >> It is perfect. So Luca comes in as team manager and he revamps the team. He manager and he revamps the team. He manager and he revamps the team. He brings in great chassis folks. He brings brings in great chassis folks. He brings brings in great chassis folks. He brings in great aerodynamic folks. And the most in great aerodynamic folks. And the most in great aerodynamic folks. And the most important thing, he goes out and important thing, he goes out and important thing, he goes out and recruits Nikki Laua to come in as their recruits Nikki Laua to come in as their recruits Nikki Laua to come in as their number one driver. And in 1975 with the number one driver. And in 1975 with the number one driver. And in 1975 with the new team, the new approach, Luca's new team, the new approach, Luca's new team, the new approach, Luca's manager, Nikki Laua wins the drivers manager, Nikki Laua wins the drivers manager, Nikki Laua wins the drivers championship for Ferrari. And Ferrari championship for Ferrari. And Ferrari championship for Ferrari. And Ferrari wins the constructor's championship, wins the constructor's championship, wins the constructor's championship, ending the 10-year drought. And there is ending the 10-year drought. And there is ending the 10-year drought. And there is great rejoicing. Luca is now revered great rejoicing. Luca is now revered great rejoicing. Luca is now revered across Italy. He's not even 30 years old across Italy. He's not even 30 years old across Italy. He's not even 30 years old yet. yet. yet. >> Wow. >> Wow. >> Wow. >> As this young hero who has come in and >> As this young hero who has come in and >> As this young hero who has come in and saved essentially the national team of saved essentially the national team of saved essentially the national team of Italy from this despairing period. Italy from this despairing period. Italy from this despairing period. >> It's amazing. And the funniest thing is >> It's amazing. And the funniest thing is >> It's amazing. And the funniest thing is imagining as you describe these imagining as you describe these imagining as you describe these conversations that Luke is off doing conversations that Luke is off doing conversations that Luke is off doing stuff. He comes back and reports to stuff. He comes back and reports to stuff. He comes back and reports to Enzo. Enzo. Enzo. Where is Enzo's house in all this when Where is Enzo's house in all this when Where is Enzo's house in all this when he's sort of like recovering from the he's sort of like recovering from the he's sort of like recovering from the illness and illness and illness and >> it is around the corner from the Ferrari >> it is around the corner from the Ferrari >> it is around the corner from the Ferrari factory in Marinelo. It's this farmhouse factory in Marinelo. It's this farmhouse factory in Marinelo. It's this farmhouse and in this exact period actually a and in this exact period actually a and in this exact period actually a couple years before in 1972 so after the couple years before in 1972 so after the couple years before in 1972 so after the illness but before the Nicki La F1 illness but before the Nicki La F1 illness but before the Nicki La F1 victory they actually build a full victory they actually build a full victory they actually build a full racetrack adjacent to Ferrari's racetrack adjacent to Ferrari's racetrack adjacent to Ferrari's headquarters that goes around Enzo's headquarters that goes around Enzo's headquarters that goes around Enzo's house so Enzo can walk out of his house so Enzo can walk out of his house so Enzo can walk out of his farmhouse and watch them testing the farmhouse and watch them testing the farmhouse and watch them testing the cars on this I mean truly unbelievable cars on this I mean truly unbelievable cars on this I mean truly unbelievable custom racetrack only for Ferrari's custom racetrack only for Ferrari's custom racetrack only for Ferrari's research in development. research in development. research in development. >> Yes. It's incredible. But he needs Luca, >> Yes. It's incredible. But he needs Luca, >> Yes. It's incredible. But he needs Luca, the young guy, to come in and change the the young guy, to come in and change the the young guy, to come in and change the culture. Enzo can't do it. He's too culture. Enzo can't do it. He's too culture. Enzo can't do it. He's too bound. He's a prisoner of his own myth bound. He's a prisoner of his own myth bound. He's a prisoner of his own myth and his own legend. and his own legend. and his own legend. >> Y So, all of this is great. Truly, truly >> Y So, all of this is great. Truly, truly >> Y So, all of this is great. Truly, truly great. There is rejoicing throughout the great. There is rejoicing throughout the great. There is rejoicing throughout the country. But there's just one problem, country. But there's just one problem, country. But there's just one problem, which is Enzo's pretty used to Enzo which is Enzo's pretty used to Enzo which is Enzo's pretty used to Enzo being the guy, so he starts to get a being the guy, so he starts to get a being the guy, so he starts to get a little jealous of young Luca. Now, they little jealous of young Luca. Now, they little jealous of young Luca. Now, they always have a great relationship. always have a great relationship. always have a great relationship. There's not like personal animosity There's not like personal animosity There's not like personal animosity here, but a couple things happen. The here, but a couple things happen. The here, but a couple things happen. The next year in F1, there's the truly crazy next year in F1, there's the truly crazy next year in F1, there's the truly crazy tragedy of Nikki Laua catching on fire. tragedy of Nikki Laua catching on fire. tragedy of Nikki Laua catching on fire. >> Horrific. >> Horrific. >> Horrific. >> Actually catching on fire at the Nurburg >> Actually catching on fire at the Nurburg >> Actually catching on fire at the Nurburg Ring. He's severely burned. He should Ring. He's severely burned. He should Ring. He's severely burned. He should have died. He does not die and he wants have died. He does not die and he wants have died. He does not die and he wants to come back and race. He's in to come back and race. He's in to come back and race. He's in contention for the championship. He ends contention for the championship. He ends contention for the championship. He ends up not winning the championship that up not winning the championship that up not winning the championship that year, even through this great act of year, even through this great act of year, even through this great act of bravery to try to come back, bravery to try to come back, bravery to try to come back, >> but almost does remarkably. If you're >> but almost does remarkably. If you're >> but almost does remarkably. If you're interested in this, go watch the movie interested in this, go watch the movie interested in this, go watch the movie Rush. It's awesome. Rush. It's awesome. Rush. It's awesome. >> So good. Enzo, though, remember, he's >> So good. Enzo, though, remember, he's >> So good. Enzo, though, remember, he's very experienced with these race car very experienced with these race car very experienced with these race car drivers and their brushes with death. drivers and their brushes with death. drivers and their brushes with death. Enzo, I think, kind of loses faith in Enzo, I think, kind of loses faith in Enzo, I think, kind of loses faith in Laa as a driver after that. He's like, Laa as a driver after that. He's like, Laa as a driver after that. He's like, "Oh, no. He fears death now." "Oh, no. He fears death now." "Oh, no. He fears death now." >> Luca still believes in him, though. So, >> Luca still believes in him, though. So, >> Luca still believes in him, though. So, there's, you know, some conflict there. there's, you know, some conflict there. there's, you know, some conflict there. Again, it never gets personal. I think Again, it never gets personal. I think Again, it never gets personal. I think they truly do always kind of love and they truly do always kind of love and they truly do always kind of love and respect each other, but all of this respect each other, but all of this respect each other, but all of this combines combines combines Luca can't stay at Ferrari. So, they Luca can't stay at Ferrari. So, they Luca can't stay at Ferrari. So, they ultimately decide it's better if Luca ultimately decide it's better if Luca ultimately decide it's better if Luca leaves the F1 team, leaves day-to-day at leaves the F1 team, leaves day-to-day at leaves the F1 team, leaves day-to-day at Ferrari, and goes to work for Fiat in Ferrari, and goes to work for Fiat in Ferrari, and goes to work for Fiat in Turan. He remains on the board of Turan. He remains on the board of Turan. He remains on the board of Ferrari, Luca does, but he goes Ferrari, Luca does, but he goes Ferrari, Luca does, but he goes dayto-day to turret and kind of closer dayto-day to turret and kind of closer dayto-day to turret and kind of closer to the Enelli Empire. And I think Enzo to the Enelli Empire. And I think Enzo to the Enelli Empire. And I think Enzo thinks that he's going to still have a thinks that he's going to still have a thinks that he's going to still have a spy now in Viet with Luca, which maybe spy now in Viet with Luca, which maybe spy now in Viet with Luca, which maybe he does, maybe he doesn't. But sadly, he does, maybe he doesn't. But sadly, he does, maybe he doesn't. But sadly, this is another tragedy. This is kind of this is another tragedy. This is kind of this is another tragedy. This is kind of the end of the glory for Ferrari in the end of the glory for Ferrari in the end of the glory for Ferrari in racing during Enzo's life. They had this racing during Enzo's life. They had this racing during Enzo's life. They had this great moment together and for the rest great moment together and for the rest great moment together and for the rest of Enzo's life there's some ups and of Enzo's life there's some ups and of Enzo's life there's some ups and downs but mostly the Ferrari glory on downs but mostly the Ferrari glory on downs but mostly the Ferrari glory on the racetrack is gone and doesn't return the racetrack is gone and doesn't return the racetrack is gone and doesn't return until Luca returns after Enzo's death until Luca returns after Enzo's death until Luca returns after Enzo's death >> much later and there's this glorious >> much later and there's this glorious >> much later and there's this glorious amazing return of Luca and there's this amazing return of Luca and there's this amazing return of Luca and there's this unbelievable run in Formula 1 and the unbelievable run in Formula 1 and the unbelievable run in Formula 1 and the Ferrari road car business becomes Ferrari road car business becomes Ferrari road car business becomes stronger than ever but basically none of stronger than ever but basically none of stronger than ever but basically none of it in Enzo's lifetime in fact the last it in Enzo's lifetime in fact the last it in Enzo's lifetime in fact the last 10 plus years of his life is a real 10 plus years of his life is a real 10 plus years of his life is a real whimper in the history of Ferrari. The whimper in the history of Ferrari. The whimper in the history of Ferrari. The road car business falls on some real road car business falls on some real road car business falls on some real ugly times. ugly times. ugly times. >> Yeah, it's funny. I I had written in my >> Yeah, it's funny. I I had written in my >> Yeah, it's funny. I I had written in my script here about the last days of Enzo script here about the last days of Enzo script here about the last days of Enzo Ferrari. They do mostly end with a Ferrari. They do mostly end with a Ferrari. They do mostly end with a whimper, not a bang, but there is one whimper, not a bang, but there is one whimper, not a bang, but there is one little bang. little bang. little bang. >> There absolutely is. >> There absolutely is. >> There absolutely is. >> His last car, Ferrari's first official >> His last car, Ferrari's first official >> His last car, Ferrari's first official supercar halo car. There were unofficial supercar halo car. There were unofficial supercar halo car. There were unofficial GTO malleigation versions of race cars GTO malleigation versions of race cars GTO malleigation versions of race cars and now those things sell at auction for and now those things sell at auction for and now those things sell at auction for like 40 50 million or more. like 40 50 million or more. like 40 50 million or more. >> One of them sold for 70 million. >> One of them sold for 70 million. >> One of them sold for 70 million. >> Yeah. So, those cars existed in Enzo's >> Yeah. So, those cars existed in Enzo's >> Yeah. So, those cars existed in Enzo's past, but there was never a model that past, but there was never a model that past, but there was never a model that was made just to be a available for was made just to be a available for was made just to be a available for purchase by our best clients, but a true purchase by our best clients, but a true purchase by our best clients, but a true true supercar until the F40, which true supercar until the F40, which true supercar until the F40, which fittingly is the last car that Enzo fittingly is the last car that Enzo fittingly is the last car that Enzo makes before he dies in 1988. All right, makes before he dies in 1988. All right, makes before he dies in 1988. All right, so tell us about the F40. so tell us about the F40. so tell us about the F40. >> Oh, man. >> Oh, man. >> Oh, man. Talk about a death machine. Talk about a death machine. Talk about a death machine. The F40 was just this incredible raw The F40 was just this incredible raw The F40 was just this incredible raw beast. If you look at pictures or video beast. If you look at pictures or video beast. If you look at pictures or video of the interior of the F40, of the interior of the F40, of the interior of the F40, this is not a luxurious vehicle. There's this is not a luxurious vehicle. There's this is not a luxurious vehicle. There's no leather. The door handle is a piece no leather. The door handle is a piece no leather. The door handle is a piece of string. This is the rawest racing of string. This is the rawest racing of string. This is the rawest racing machine in its purest form. machine in its purest form. machine in its purest form. >> It is. Can we throw out everything that >> It is. Can we throw out everything that >> It is. Can we throw out everything that is not absolutely required so we can is not absolutely required so we can is not absolutely required so we can have the lightest weight vehicle have the lightest weight vehicle have the lightest weight vehicle possible? And it's crazy. We'll put a possible? And it's crazy. We'll put a possible? And it's crazy. We'll put a photo of the interior of this cabin in photo of the interior of this cabin in photo of the interior of this cabin in the email. It is a lot of carbon fiber, the email. It is a lot of carbon fiber, the email. It is a lot of carbon fiber, but not like cool looking carbon fiber. but not like cool looking carbon fiber. but not like cool looking carbon fiber. >> No, like raw carbon fiber. >> No, like raw carbon fiber. >> No, like raw carbon fiber. >> This is the absolute minimum that we >> This is the absolute minimum that we >> This is the absolute minimum that we could ship. And David, to your point, could ship. And David, to your point, could ship. And David, to your point, this thing, while it is a supercar, the this thing, while it is a supercar, the this thing, while it is a supercar, the same way that the F50 and the LaFerrari same way that the F50 and the LaFerrari same way that the F50 and the LaFerrari and the Enzo and the F80 are supercars, and the Enzo and the F80 are supercars, and the Enzo and the F80 are supercars, this is not a luxury supercar. No. When this is not a luxury supercar. No. When this is not a luxury supercar. No. When you're sitting in this car, you're not you're sitting in this car, you're not you're sitting in this car, you're not sitting in here thinking like I'm a rich sitting in here thinking like I'm a rich sitting in here thinking like I'm a rich person. You're sitting in here thinking person. You're sitting in here thinking person. You're sitting in here thinking like like like >> this thing is trying to kill me at every >> this thing is trying to kill me at every >> this thing is trying to kill me at every angle. angle. angle. >> I'm in some sort of test harness. >> I'm in some sort of test harness. >> I'm in some sort of test harness. >> Yes. >> Yes. >> Yes. >> Yeah. I mean, the videos online of >> Yeah. I mean, the videos online of >> Yeah. I mean, the videos online of people crashing Ferrari F40s are tragic, people crashing Ferrari F40s are tragic, people crashing Ferrari F40s are tragic, of course, because they're amazing of course, because they're amazing of course, because they're amazing machines. But if you get in this car and machines. But if you get in this car and machines. But if you get in this car and you do not know exactly what you're you do not know exactly what you're you do not know exactly what you're doing, you're going to crash. doing, you're going to crash. doing, you're going to crash. >> It's interesting. The F40 sort of >> It's interesting. The F40 sort of >> It's interesting. The F40 sort of punctuated punctuated punctuated the end of Enzo's life or the end of the the end of Enzo's life or the end of the the end of Enzo's life or the end of the Enzo era in this really interesting way Enzo era in this really interesting way Enzo era in this really interesting way because it is a supercar the same way because it is a supercar the same way because it is a supercar the same way that the modern cars are about that the modern cars are about that the modern cars are about supercars. They're these high supercars. They're these high supercars. They're these high performance machines, but it had every performance machines, but it had every performance machines, but it had every flaw of the Enzo era of Ferrari. It flaw of the Enzo era of Ferrari. It flaw of the Enzo era of Ferrari. It wasn't practical. It was purely about wasn't practical. It was purely about wasn't practical. It was purely about being a race car and made every being a race car and made every being a race car and made every compromise possible to get there. compromise possible to get there. compromise possible to get there. >> Yep. Ferrari will never make another one >> Yep. Ferrari will never make another one >> Yep. Ferrari will never make another one like it again. We should say also what like it again. We should say also what like it again. We should say also what F40 means. It was the 40th anniversary F40 means. It was the 40th anniversary F40 means. It was the 40th anniversary of the commencing of operations of the of the commencing of operations of the of the commencing of operations of the modern Ferrari. So from 1947 to 1987 modern Ferrari. So from 1947 to 1987 modern Ferrari. So from 1947 to 1987 when the F40 came out. So then the next when the F40 came out. So then the next when the F40 came out. So then the next year at age 90, the grand old man year at age 90, the grand old man year at age 90, the grand old man does finally pass away. Enzo Ferrari does finally pass away. Enzo Ferrari does finally pass away. Enzo Ferrari dies in the summer of 1988. dies in the summer of 1988. dies in the summer of 1988. Poetically, just after his death, Poetically, just after his death, Poetically, just after his death, Ferrari in the next Formula 1 Grand Prix Ferrari in the next Formula 1 Grand Prix Ferrari in the next Formula 1 Grand Prix that is run after Enzo's death finishes that is run after Enzo's death finishes that is run after Enzo's death finishes one two wins at Monza. one two wins at Monza. one two wins at Monza. >> Oh my god. >> Oh my god. >> Oh my god. >> The Italian Grand Prix. And that is the >> The Italian Grand Prix. And that is the >> The Italian Grand Prix. And that is the only race that Ferrari won that season. only race that Ferrari won that season. only race that Ferrari won that season. >> Either the gods were smiling upon Enzo >> Either the gods were smiling upon Enzo >> Either the gods were smiling upon Enzo and death and death and death >> or Bernie Eckleston's fix was in. Yes, >> or Bernie Eckleston's fix was in. Yes, >> or Bernie Eckleston's fix was in. Yes, >> the fix was it. Either way, it was >> the fix was it. Either way, it was >> the fix was it. Either way, it was poetic. For the next couple years poetic. For the next couple years poetic. For the next couple years though, oh man, the sort of slow motion though, oh man, the sort of slow motion though, oh man, the sort of slow motion disaster at Ferrari continues unabated disaster at Ferrari continues unabated disaster at Ferrari continues unabated on both sides of the business. on both sides of the business. on both sides of the business. >> Real quick before that though, it's >> Real quick before that though, it's >> Real quick before that though, it's worth highlighting. So the Angelli worth highlighting. So the Angelli worth highlighting. So the Angelli family ends up getting the 40%. Pier family ends up getting the 40%. Pier family ends up getting the 40%. Pier ends up getting the 10%. But an ends up getting the 10%. But an ends up getting the 10%. But an interesting thing to note, the valuation interesting thing to note, the valuation interesting thing to note, the valuation is extremely different this time around. is extremely different this time around. is extremely different this time around. >> Yeah, you found detail on this. I >> Yeah, you found detail on this. I >> Yeah, you found detail on this. I couldn't find it. So, a good friend of couldn't find it. So, a good friend of couldn't find it. So, a good friend of the show, Arvin Navaratnam from Worldly the show, Arvin Navaratnam from Worldly the show, Arvin Navaratnam from Worldly Partners, uh, scoured all of the old Partners, uh, scoured all of the old Partners, uh, scoured all of the old annual reports that he could find. And annual reports that he could find. And annual reports that he could find. And in the 1988 annual report, it reports in the 1988 annual report, it reports in the 1988 annual report, it reports the amount of LRA to acquire the the amount of LRA to acquire the the amount of LRA to acquire the remaining 40% of Ferrari. remaining 40% of Ferrari. remaining 40% of Ferrari. >> Oh, I'm so curious. What was it? >> Oh, I'm so curious. What was it? >> Oh, I'm so curious. What was it? >> If you do the exchange rate at that >> If you do the exchange rate at that >> If you do the exchange rate at that time, it is 77 million, which valued the time, it is 77 million, which valued the time, it is 77 million, which valued the company at $192 million in 1988. much company at $192 million in 1988. much company at $192 million in 1988. much different than the what was it different than the what was it different than the what was it >> 67 million in 1969. Yeah. I mean two >> 67 million in 1969. Yeah. I mean two >> 67 million in 1969. Yeah. I mean two things are simultaneously crazy right things are simultaneously crazy right things are simultaneously crazy right here. One how much the valuation here. One how much the valuation here. One how much the valuation increased from the first time. Second increased from the first time. Second increased from the first time. Second that Fiat and Yanelli family that Fiat and Yanelli family that Fiat and Yanelli family acquired 40% of Ferrari for a valuation acquired 40% of Ferrari for a valuation acquired 40% of Ferrari for a valuation of 192 million. Unbelievable. of 192 million. Unbelievable. of 192 million. Unbelievable. >> Or that they acquired 90% of it for >> Or that they acquired 90% of it for >> Or that they acquired 90% of it for what? $72 million. what? $72 million. what? $72 million. >> Yeah. in aggregate. Yeah. Wow. Wow. Wow. >> Yeah. in aggregate. Yeah. Wow. Wow. Wow. >> Yeah. in aggregate. Yeah. Wow. Wow. Wow. >> Or that as recently as 1988, it was >> Or that as recently as 1988, it was >> Or that as recently as 1988, it was worth only $192 million. I mean, this is worth only $192 million. I mean, this is worth only $192 million. I mean, this is a company today that's worth recently a company today that's worth recently a company today that's worth recently over $90 billion, but today $55 billion. over $90 billion, but today $55 billion. over $90 billion, but today $55 billion. Yes. In 1988, $192 million. Well, this Yes. In 1988, $192 million. Well, this Yes. In 1988, $192 million. Well, this really just highlights how different a really just highlights how different a really just highlights how different a company Ferrari was when Enzo died. company Ferrari was when Enzo died. company Ferrari was when Enzo died. >> Yes. and how much Luca Deontealo >> Yes. and how much Luca Deontealo >> Yes. and how much Luca Deontealo transformed it when he came back and transformed it when he came back and transformed it when he came back and became the chairman. But for the moment became the chairman. But for the moment became the chairman. But for the moment when Enzo dies, the sort of slow motion when Enzo dies, the sort of slow motion when Enzo dies, the sort of slow motion disaster just continues unabated. Fiat's disaster just continues unabated. Fiat's disaster just continues unabated. Fiat's attempt, their best solution to fixing attempt, their best solution to fixing attempt, their best solution to fixing the problem of the road car business is the problem of the road car business is the problem of the road car business is to produce more road cars, which is the to produce more road cars, which is the to produce more road cars, which is the cardinal sin of luxury strategy cardinal sin of luxury strategy cardinal sin of luxury strategy management. Just as one example, Ferrari management. Just as one example, Ferrari management. Just as one example, Ferrari during these years before Luca comes during these years before Luca comes during these years before Luca comes back. Ferrari produced 7,000 Tessterosas back. Ferrari produced 7,000 Tessterosas back. Ferrari produced 7,000 Tessterosas over the seven years that the Tessterosa over the seven years that the Tessterosa over the seven years that the Tessterosa was in production. Compare that to was in production. Compare that to was in production. Compare that to Lamborghini. Lamborghini only produced Lamborghini. Lamborghini only produced Lamborghini. Lamborghini only produced 2,000 Countaches during a period twice 2,000 Countaches during a period twice 2,000 Countaches during a period twice as long. They made Countaches for 16 as long. They made Countaches for 16 as long. They made Countaches for 16 years. years. years. >> By any normal car company, we're talking >> By any normal car company, we're talking >> By any normal car company, we're talking tiny numbers no matter what. But when tiny numbers no matter what. But when tiny numbers no matter what. But when you're talking about something rare and you're talking about something rare and you're talking about something rare and exclusive and so special as what a exclusive and so special as what a exclusive and so special as what a Ferrari should be and then you have a Ferrari should be and then you have a Ferrari should be and then you have a company that you don't even really company that you don't even really company that you don't even really consider your competitor over there consider your competitor over there consider your competitor over there making a more exclusive product and making a more exclusive product and making a more exclusive product and managing it better. That's not a good managing it better. That's not a good managing it better. That's not a good situation. situation. situation. >> No, it is not. And another crazy frame >> No, it is not. And another crazy frame >> No, it is not. And another crazy frame on that. If you look at the production on that. If you look at the production on that. If you look at the production of total Ferrari cars, not just one of total Ferrari cars, not just one of total Ferrari cars, not just one model, but total cars, in 1982, it was model, but total cars, in 1982, it was model, but total cars, in 1982, it was 2,200. 2,200. 2,200. >> If you look in 1991, >> If you look in 1991, >> If you look in 1991, that grew all the way up to 4,500. that grew all the way up to 4,500. that grew all the way up to 4,500. >> They just kept ramping, ramping, >> They just kept ramping, ramping, >> They just kept ramping, ramping, ramping, and making more cars. ramping, and making more cars. ramping, and making more cars. >> Yeah. Not the right fix. >> Yeah. Not the right fix. >> Yeah. Not the right fix. >> Not the right fix. So you mentioned >> Not the right fix. So you mentioned >> Not the right fix. So you mentioned 1991, that was the last year of this 1991, that was the last year of this 1991, that was the last year of this interregnum period before Luca comes interregnum period before Luca comes interregnum period before Luca comes back. It's so bad. Demand has evaporated back. It's so bad. Demand has evaporated back. It's so bad. Demand has evaporated so much for Ferraris that for the first so much for Ferraris that for the first so much for Ferraris that for the first time in history, cars are going unsold. time in history, cars are going unsold. time in history, cars are going unsold. They have to furlow the factory workers They have to furlow the factory workers They have to furlow the factory workers and shut down the factory. And so when and shut down the factory. And so when and shut down the factory. And so when it comes to this, Giani Anelli finally it comes to this, Giani Anelli finally it comes to this, Giani Anelli finally calls up Luca and says, "It's time for calls up Luca and says, "It's time for calls up Luca and says, "It's time for you to return. We need you to come back. you to return. We need you to come back. you to return. We need you to come back. We are quote putting Ferrari in your We are quote putting Ferrari in your We are quote putting Ferrari in your hands." And Luca Deontallo returns to hands." And Luca Deontallo returns to hands." And Luca Deontallo returns to become chairman of Ferrari. We should become chairman of Ferrari. We should become chairman of Ferrari. We should note it's going to be important here in note it's going to be important here in note it's going to be important here in a minute. In Italy, chairman of the a minute. In Italy, chairman of the a minute. In Italy, chairman of the company is actually the most important company is actually the most important company is actually the most important and powerful title, and the CEO reports and powerful title, and the CEO reports and powerful title, and the CEO reports to the chairman. So, at this point, when to the chairman. So, at this point, when to the chairman. So, at this point, when Giani calls Luca back, he's been gone Giani calls Luca back, he's been gone Giani calls Luca back, he's been gone from the day-to-day at Ferrari for from the day-to-day at Ferrari for from the day-to-day at Ferrari for almost 15 years. After Ferrari, he did a almost 15 years. After Ferrari, he did a almost 15 years. After Ferrari, he did a short stint at Fiat and then he stayed short stint at Fiat and then he stayed short stint at Fiat and then he stayed in the Anelli Empire. He became CEO of in the Anelli Empire. He became CEO of in the Anelli Empire. He became CEO of the beverage company Chinszano, which is the beverage company Chinszano, which is the beverage company Chinszano, which is another Enelli family company. And so he another Enelli family company. And so he another Enelli family company. And so he had gained CEO experience. And then the had gained CEO experience. And then the had gained CEO experience. And then the reason that Luca couldn't come back to reason that Luca couldn't come back to reason that Luca couldn't come back to take over Ferrari as soon as Enzo died take over Ferrari as soon as Enzo died take over Ferrari as soon as Enzo died was he had become the organizer and was he had become the organizer and was he had become the organizer and president of the Italia 90 World Cup. So president of the Italia 90 World Cup. So president of the Italia 90 World Cup. So the World Cup in 1990 was in Italy and the World Cup in 1990 was in Italy and the World Cup in 1990 was in Italy and Luca organized the whole thing and Luca organized the whole thing and Luca organized the whole thing and there's great stories associated with there's great stories associated with there's great stories associated with that. My favorite is that he that. My favorite is that he that. My favorite is that he >> convened for the sort of final evening >> convened for the sort of final evening >> convened for the sort of final evening ceremony of the World Cup for the first ceremony of the World Cup for the first ceremony of the World Cup for the first time the three teners. the three teners time the three teners. the three teners time the three teners. the three teners didn't exist until the World Cup. And didn't exist until the World Cup. And didn't exist until the World Cup. And the way he convinced Pavarati to join the way he convinced Pavarati to join the way he convinced Pavarati to join because he was the big star he didn't because he was the big star he didn't because he was the big star he didn't want to join was he gave him an F40 and thus the three teners were born. and thus the three teners were born. >> That is awesome. >> That is awesome. >> That is awesome. >> So once the World Cup is over, Johnny's >> So once the World Cup is over, Johnny's >> So once the World Cup is over, Johnny's like, "Okay, enough messing around. You like, "Okay, enough messing around. You like, "Okay, enough messing around. You got to come back fix this." M. got to come back fix this." M. got to come back fix this." M. >> So, the first thing Monteolo does when >> So, the first thing Monteolo does when >> So, the first thing Monteolo does when he knows he's going to return to take he knows he's going to return to take he knows he's going to return to take over Ferrari after Enzo, he goes and he over Ferrari after Enzo, he goes and he over Ferrari after Enzo, he goes and he buys a 348, the flagship Ferrari sports buys a 348, the flagship Ferrari sports buys a 348, the flagship Ferrari sports car at the time, just to sort of see the car at the time, just to sort of see the car at the time, just to sort of see the state of things. Like, how bad was it state of things. Like, how bad was it state of things. Like, how bad was it really? I'm going to go buy my own 348 really? I'm going to go buy my own 348 really? I'm going to go buy my own 348 and test it out. And Luca's actual quote and test it out. And Luca's actual quote and test it out. And Luca's actual quote on this is the Ferrari 348 was a on this is the Ferrari 348 was a on this is the Ferrari 348 was a car. It was the worst car we ever made. car. It was the worst car we ever made. car. It was the worst car we ever made. Everything was missing. It had no Everything was missing. It had no Everything was missing. It had no personality. It had no technology. It personality. It had no technology. It personality. It had no technology. It wasn't state-of-the-art and anything. It wasn't state-of-the-art and anything. It wasn't state-of-the-art and anything. It had no power. It was all missing. He had no power. It was all missing. He had no power. It was all missing. He talks about when he was driving it, he talks about when he was driving it, he talks about when he was driving it, he would pull up to stop lights and try and would pull up to stop lights and try and would pull up to stop lights and try and race the other cars off the line and see race the other cars off the line and see race the other cars off the line and see how it would perform. You know, kind of how it would perform. You know, kind of how it would perform. You know, kind of drag race at stoplights. He was like, "I drag race at stoplights. He was like, "I drag race at stoplights. He was like, "I was getting beaten off the line by was getting beaten off the line by was getting beaten off the line by Volkswagen Gulfs Volkswagen Gulfs Volkswagen Gulfs >> in a Ferrari." Oh, brutal. >> in a Ferrari." Oh, brutal. >> in a Ferrari." Oh, brutal. >> What do you attribute this to? What? >> What do you attribute this to? What? >> What do you attribute this to? What? Like the Ferrari has deteriorated. It's Like the Ferrari has deteriorated. It's Like the Ferrari has deteriorated. It's fallen apart in this era. The the cars fallen apart in this era. The the cars fallen apart in this era. The the cars have no personality, but they also have have no personality, but they also have have no personality, but they also have no performance and they're impractical no performance and they're impractical no performance and they're impractical and they're overmaking them and no one and they're overmaking them and no one and they're overmaking them and no one wants them. What's wrong? Like, why have wants them. What's wrong? Like, why have wants them. What's wrong? Like, why have the wheels come off the bus here? the wheels come off the bus here? the wheels come off the bus here? >> It was Fiat. It was all they knew how to >> It was Fiat. It was all they knew how to >> It was Fiat. It was all they knew how to do. They came in of like, oh, the the do. They came in of like, oh, the the do. They came in of like, oh, the the way we can fix this is we increase way we can fix this is we increase way we can fix this is we increase production. We'll cut cost. So, let's production. We'll cut cost. So, let's production. We'll cut cost. So, let's share some parts with Fiat cars. You share some parts with Fiat cars. You share some parts with Fiat cars. You know, Ferrari road cars went from being know, Ferrari road cars went from being know, Ferrari road cars went from being the same thing built by the same people the same thing built by the same people the same thing built by the same people as the racing cars, as the F1 cars and as the racing cars, as the F1 cars and as the racing cars, as the F1 cars and the Le Man cars in the same factory to the Le Man cars in the same factory to the Le Man cars in the same factory to in this period with Fiat control, in this period with Fiat control, in this period with Fiat control, they're really not the same thing. You they're really not the same thing. You they're really not the same thing. You know, these are know, these are know, these are >> it's would be too far of a stretch to >> it's would be too far of a stretch to >> it's would be too far of a stretch to say they were repurposed Fiats, but say they were repurposed Fiats, but say they were repurposed Fiats, but >> they had lost that true connection to >> they had lost that true connection to >> they had lost that true connection to race machines. Hm. race machines. Hm. race machines. Hm. >> And so Luca comes back and says, "We got >> And so Luca comes back and says, "We got >> And so Luca comes back and says, "We got to fix this." So at the time, the to fix this." So at the time, the to fix this." So at the time, the Japanese sports car industry was on the Japanese sports car industry was on the Japanese sports car industry was on the rise. And all the car enthusiasts were rise. And all the car enthusiasts were rise. And all the car enthusiasts were saying, "Ferrari's dead. The Italian car saying, "Ferrari's dead. The Italian car saying, "Ferrari's dead. The Italian car makers are dead. The Japanese have taken makers are dead. The Japanese have taken makers are dead. The Japanese have taken over." Luca has the test drivers at over." Luca has the test drivers at over." Luca has the test drivers at Ferrari go out and buy a Honda NSX and Ferrari go out and buy a Honda NSX and Ferrari go out and buy a Honda NSX and do like his own version of the Pepsi do like his own version of the Pepsi do like his own version of the Pepsi challenge. like go out there, drive the challenge. like go out there, drive the challenge. like go out there, drive the NSX as hard as you can around the test NSX as hard as you can around the test NSX as hard as you can around the test track, drive our cars, drive the 348 as track, drive our cars, drive the 348 as track, drive our cars, drive the 348 as hard as you can around the test track, hard as you can around the test track, hard as you can around the test track, and they come back and they're like, and they come back and they're like, and they come back and they're like, "Yeah, I mean, there's no competition." "Yeah, I mean, there's no competition." "Yeah, I mean, there's no competition." The NSX just blows us away. Wow. I mean, The NSX just blows us away. Wow. I mean, The NSX just blows us away. Wow. I mean, how sad is that? It's a Honda. A Honda. how sad is that? It's a Honda. A Honda. how sad is that? It's a Honda. A Honda. That's completely lost to history today. That's completely lost to history today. That's completely lost to history today. You don't hear anyone talking about You don't hear anyone talking about You don't hear anyone talking about Ferrari is this sort of like untouchable Ferrari is this sort of like untouchable Ferrari is this sort of like untouchable apex brand that it's hard to imagine apex brand that it's hard to imagine apex brand that it's hard to imagine that happening just you know as recently that happening just you know as recently that happening just you know as recently as the early '90s as the early '90s as the early '90s >> right I mean it's one thing if >> right I mean it's one thing if >> right I mean it's one thing if Lamborghini is beating them I mean Lamborghini is beating them I mean Lamborghini is beating them I mean that's bad that's really bad but if that's bad that's really bad but if that's bad that's really bad but if Honda is making a better sports car than Honda is making a better sports car than Honda is making a better sports car than Ferrari there's a real real problem yeah Ferrari there's a real real problem yeah Ferrari there's a real real problem yeah so how's Luca going to turn this around so how's Luca going to turn this around so how's Luca going to turn this around he comes up with three priorities he comes up with three priorities he comes up with three priorities the team the technology and the myth. the team the technology and the myth. the team the technology and the myth. >> So, number one, the team. The Formula 1 >> So, number one, the team. The Formula 1 >> So, number one, the team. The Formula 1 team. We have to fix the Formula 1 team. team. We have to fix the Formula 1 team. team. We have to fix the Formula 1 team. Going back to his great quote, you know, Going back to his great quote, you know, Going back to his great quote, you know, there's not a direct correlation between there's not a direct correlation between there's not a direct correlation between victories on the track and cars that you victories on the track and cars that you victories on the track and cars that you can sell. But the team feeds the myth. can sell. But the team feeds the myth. can sell. But the team feeds the myth. If you don't add wood to the fire of If you don't add wood to the fire of If you don't add wood to the fire of victories on the track, the flame of the victories on the track, the flame of the victories on the track, the flame of the myth will die. You cannot only lose. myth will die. You cannot only lose. myth will die. You cannot only lose. >> Yep. So, the team hadn't won a >> Yep. So, the team hadn't won a >> Yep. So, the team hadn't won a championship since 1979. Luca goes out championship since 1979. Luca goes out championship since 1979. Luca goes out and recruits and recruits and recruits the dream team. I think the greatest set the dream team. I think the greatest set the dream team. I think the greatest set of F1 team members that had ever existed of F1 team members that had ever existed of F1 team members that had ever existed in history. Jean Todd, team principal, in history. Jean Todd, team principal, in history. Jean Todd, team principal, Ross Braun, race engineer, Ross Braun, race engineer, Ross Braun, race engineer, Michael Schemacher, Michael Schemacher, Michael Schemacher, Ferrari number one driver. And it takes Ferrari number one driver. And it takes Ferrari number one driver. And it takes a couple years for Luca and the team to a couple years for Luca and the team to a couple years for Luca and the team to turn this around, but this is just turn this around, but this is just turn this around, but this is just absolute domination that they unleash on absolute domination that they unleash on absolute domination that they unleash on the field. By the end of the decade, the field. By the end of the decade, the field. By the end of the decade, there would be five straight years, 2000 there would be five straight years, 2000 there would be five straight years, 2000 to 2004, where Michael Schumacher won to 2004, where Michael Schumacher won to 2004, where Michael Schumacher won every single driver's championship five every single driver's championship five every single driver's championship five years in a row, and Ferrari won every years in a row, and Ferrari won every years in a row, and Ferrari won every single constructor's championship five single constructor's championship five single constructor's championship five years in a row. years in a row. years in a row. >> As we talked about on the F1 episode, it >> As we talked about on the F1 episode, it >> As we talked about on the F1 episode, it it was a problem for Formula 1. The it was a problem for Formula 1. The it was a problem for Formula 1. The sport became too boring because Ferrari sport became too boring because Ferrari sport became too boring because Ferrari always won. Yeah. always won. Yeah. always won. Yeah. >> In total, under Montazelo's tenure, >> In total, under Montazelo's tenure, >> In total, under Montazelo's tenure, Ferrari wins 19 Ferrari wins 19 Ferrari wins 19 drivers and constructors championships, drivers and constructors championships, drivers and constructors championships, which is more than Enzo. which is more than Enzo. which is more than Enzo. >> That's amazing. >> That's amazing. >> That's amazing. >> It's incredible how he turned the team >> It's incredible how he turned the team >> It's incredible how he turned the team around just like he did back as Enzo's around just like he did back as Enzo's around just like he did back as Enzo's assistant back in the day. assistant back in the day. assistant back in the day. >> All right, then the technology. >> All right, then the technology. >> All right, then the technology. >> The technology. The cars. >> The technology. The cars. >> The technology. The cars. We can't have a Honda NSX outclassing a We can't have a Honda NSX outclassing a We can't have a Honda NSX outclassing a Ferrari. Ferraris are about our heritage Ferrari. Ferraris are about our heritage Ferrari. Ferraris are about our heritage and our myth, but they are also about and our myth, but they are also about and our myth, but they are also about looking ahead. We can't be selling 250s looking ahead. We can't be selling 250s looking ahead. We can't be selling 250s repainted for the modern era. repainted for the modern era. repainted for the modern era. >> Yeah. And this is really where the >> Yeah. And this is really where the >> Yeah. And this is really where the feelings about technology change where feelings about technology change where feelings about technology change where Ferrari went from a late adopter of Ferrari went from a late adopter of Ferrari went from a late adopter of technology when it's sort of proven to technology when it's sort of proven to technology when it's sort of proven to really pushing the bleeding edge. And really pushing the bleeding edge. And really pushing the bleeding edge. And today, Ferrari spends a good amount more today, Ferrari spends a good amount more today, Ferrari spends a good amount more on R&D as a percentage of their revenue on R&D as a percentage of their revenue on R&D as a percentage of their revenue than most other car companies. It's than most other car companies. It's than most other car companies. It's become sort of a a signature of the become sort of a a signature of the become sort of a a signature of the company. company. company. >> Yep. And this absolutely was a hallmark >> Yep. And this absolutely was a hallmark >> Yep. And this absolutely was a hallmark of Montlo's turnaround. Enzo didn't of Montlo's turnaround. Enzo didn't of Montlo's turnaround. Enzo didn't really care that much about technology. really care that much about technology. really care that much about technology. >> That's interesting. Yeah. >> That's interesting. Yeah. >> That's interesting. Yeah. >> Yeah. So, first thing they do, we got to >> Yeah. So, first thing they do, we got to >> Yeah. So, first thing they do, we got to fix the 348, the flagship sports car. fix the 348, the flagship sports car. fix the 348, the flagship sports car. So, they revise it. They do some stop So, they revise it. They do some stop So, they revise it. They do some stop gaps, but ultimately as soon as gaps, but ultimately as soon as gaps, but ultimately as soon as possible, they kill it and replace it possible, they kill it and replace it possible, they kill it and replace it with the 355, with the 355, with the 355, which was just a glorious car. And this which was just a glorious car. And this which was just a glorious car. And this just checked every box. Amazingly, it just checked every box. Amazingly, it just checked every box. Amazingly, it was modestly priced. So, it was a was modestly priced. So, it was a was modestly priced. So, it was a $127,000. $127,000. $127,000. So, modest by Ferrari's standards. So, modest by Ferrari's standards. So, modest by Ferrari's standards. Anyway, it was much more sort of Anyway, it was much more sort of Anyway, it was much more sort of userfriendly to drive. It actually made userfriendly to drive. It actually made userfriendly to drive. It actually made sense if you weren't a track car driver sense if you weren't a track car driver sense if you weren't a track car driver to drive this car. It was really the to drive this car. It was really the to drive this car. It was really the workhorse of the turnaround and by 1997 workhorse of the turnaround and by 1997 workhorse of the turnaround and by 1997 it accounted for 70% of sales. Wow. Wow. it accounted for 70% of sales. Wow. Wow. it accounted for 70% of sales. Wow. Wow. The 355 I would put it in the category The 355 I would put it in the category The 355 I would put it in the category of like a Rolex Submariner of this thing of like a Rolex Submariner of this thing of like a Rolex Submariner of this thing that is a signature of the brand is that is a signature of the brand is that is a signature of the brand is perfect product market fit is priced perfect product market fit is priced perfect product market fit is priced perfectly and just deeply understands perfectly and just deeply understands perfectly and just deeply understands why the customer is buying it. why the customer is buying it. why the customer is buying it. >> Yep. The other thing to note before they >> Yep. The other thing to note before they >> Yep. The other thing to note before they launched the 355 is Luca massively cut launched the 355 is Luca massively cut launched the 355 is Luca massively cut production. So I mentioned that in 1991 production. So I mentioned that in 1991 production. So I mentioned that in 1991 Ferrari had made 4500 cars which is just Ferrari had made 4500 cars which is just Ferrari had made 4500 cars which is just this giant inflation. By 1993, just 2 this giant inflation. By 1993, just 2 this giant inflation. By 1993, just 2 years later, Luca brought this down to years later, Luca brought this down to years later, Luca brought this down to 2,300. 2,300. 2,300. So cut it almost in half in those two So cut it almost in half in those two So cut it almost in half in those two years. And production would start years. And production would start years. And production would start climbing again. You know, as I climbing again. You know, as I climbing again. You know, as I mentioned, the 355 was really mentioned, the 355 was really mentioned, the 355 was really wellreceived and they started really wellreceived and they started really wellreceived and they started really building up their back order list again. building up their back order list again. building up their back order list again. But interestingly, it would not eclipse But interestingly, it would not eclipse But interestingly, it would not eclipse that 1991 peak of 45,500 cars again that 1991 peak of 45,500 cars again that 1991 peak of 45,500 cars again until 2006, until 2006, until 2006, a full 15 years later. a full 15 years later. a full 15 years later. >> Yeah, we need to not just fix the myth >> Yeah, we need to not just fix the myth >> Yeah, we need to not just fix the myth of Ferrari, but we need to protect it. of Ferrari, but we need to protect it. of Ferrari, but we need to protect it. And this was Luca's third and most And this was Luca's third and most And this was Luca's third and most important priority, the myth. Luca came important priority, the myth. Luca came important priority, the myth. Luca came from a very different background and from a very different background and from a very different background and life experience than Enzo. Luca is the life experience than Enzo. Luca is the life experience than Enzo. Luca is the one who realized that Ferrari is a one who realized that Ferrari is a one who realized that Ferrari is a luxury company. To Enzo, Ferrari was a luxury company. To Enzo, Ferrari was a luxury company. To Enzo, Ferrari was a racing company that sold a connection to racing company that sold a connection to racing company that sold a connection to that to its clients. And Enzo was a that to its clients. And Enzo was a that to its clients. And Enzo was a marketing genius and he came up with the marketing genius and he came up with the marketing genius and he came up with the prancing horse and the red and the myth prancing horse and the red and the myth prancing horse and the red and the myth of Enzo. But you couldn't talk to Enzo of Enzo. But you couldn't talk to Enzo of Enzo. But you couldn't talk to Enzo about how Hermes was managing its about how Hermes was managing its about how Hermes was managing its business. You know, Enzo had no idea business. You know, Enzo had no idea business. You know, Enzo had no idea what Jean Louie Duma was doing over in what Jean Louie Duma was doing over in what Jean Louie Duma was doing over in Paris. Luca knew exactly what Jean Louie Paris. Luca knew exactly what Jean Louie Paris. Luca knew exactly what Jean Louie Duma was doing over in Paris. Luca is Duma was doing over in Paris. Luca is Duma was doing over in Paris. Luca is the one who institutes weightless. the one who institutes weightless. the one who institutes weightless. >> Luca is the one who institutes >> Luca is the one who institutes >> Luca is the one who institutes presentation ceremonies when your car is presentation ceremonies when your car is presentation ceremonies when your car is delivered. Luca is the one who delivered. Luca is the one who delivered. Luca is the one who institutes custom luxury leather luggage institutes custom luxury leather luggage institutes custom luxury leather luggage that comes perfectly fitted to your that comes perfectly fitted to your that comes perfectly fitted to your Ferrari. Ferrari. Ferrari. Luca institutes the luxury strategy at Luca institutes the luxury strategy at Luca institutes the luxury strategy at Ferrari. Ferrari. Ferrari. >> Where did Luca come up with this >> Where did Luca come up with this >> Where did Luca come up with this strategy? Like, did he adopt the luxury strategy? Like, did he adopt the luxury strategy? Like, did he adopt the luxury strategy from somewhere else? Did he strategy from somewhere else? Did he strategy from somewhere else? Did he invent it from Whole Cloth? invent it from Whole Cloth? invent it from Whole Cloth? >> I think it's just he comes from such a >> I think it's just he comes from such a >> I think it's just he comes from such a different background and world different background and world different background and world experience than Enzo. Enzo didn't know a experience than Enzo. Enzo didn't know a experience than Enzo. Enzo didn't know a Birkin from a Coach bag, Birkin from a Coach bag, Birkin from a Coach bag, >> right? He grew up in Modna. >> right? He grew up in Modna. >> right? He grew up in Modna. >> He grew up in Mona. And then after >> He grew up in Mona. And then after >> He grew up in Mona. And then after Dino's death, he never gets on an Dino's death, he never gets on an Dino's death, he never gets on an airplane again. He doesn't leave this airplane again. He doesn't leave this airplane again. He doesn't leave this one region of Italy. Whereas Luca has one region of Italy. Whereas Luca has one region of Italy. Whereas Luca has lived all over the world. He's run the lived all over the world. He's run the lived all over the world. He's run the Italian cup. He's been CEO of an Italian cup. He's been CEO of an Italian cup. He's been CEO of an alcoholic beverages company. He knows alcoholic beverages company. He knows alcoholic beverages company. He knows all the luxury families. He knows all all the luxury families. He knows all all the luxury families. He knows all the luxury companies and he studies what the luxury companies and he studies what the luxury companies and he studies what they do. they do. they do. >> Yeah, it's interesting. That makes total >> Yeah, it's interesting. That makes total >> Yeah, it's interesting. That makes total sense. The other big piece of his sense. The other big piece of his sense. The other big piece of his strategy is anytime you see a Ferrari, strategy is anytime you see a Ferrari, strategy is anytime you see a Ferrari, it needs to scream Ferrari at you. And it needs to scream Ferrari at you. And it needs to scream Ferrari at you. And in a way that was really exemplified by in a way that was really exemplified by in a way that was really exemplified by the 355. the 355. the 355. It looked like all the cool classic It looked like all the cool classic It looked like all the cool classic Ferraris and the race cars, but it was Ferraris and the race cars, but it was Ferraris and the race cars, but it was much easier to drive. So there should be much easier to drive. So there should be much easier to drive. So there should be sort of a unification between the stuff sort of a unification between the stuff sort of a unification between the stuff we're selling to people and the race we're selling to people and the race we're selling to people and the race cars. cars. cars. >> Yes, this was another key understanding >> Yes, this was another key understanding >> Yes, this was another key understanding of Lucas. These cars needed to be of Lucas. These cars needed to be of Lucas. These cars needed to be drivable. In Enzo's day, you could get drivable. In Enzo's day, you could get drivable. In Enzo's day, you could get away with the excuse of, "Yeah, these away with the excuse of, "Yeah, these away with the excuse of, "Yeah, these cars aren't really going to function on cars aren't really going to function on cars aren't really going to function on the road because they truly are intended the road because they truly are intended the road because they truly are intended to be race cars. By the 1990s into the to be race cars. By the 1990s into the to be race cars. By the 1990s into the 2000s, that's not going to fly anymore. 2000s, that's not going to fly anymore. 2000s, that's not going to fly anymore. The people who are the clients who are The people who are the clients who are The people who are the clients who are buying these cars, they want to be able buying these cars, they want to be able buying these cars, they want to be able to drive them on the streets." Yep. He to drive them on the streets." Yep. He to drive them on the streets." Yep. He does a handful of other tactics that I does a handful of other tactics that I does a handful of other tactics that I would say set the company up for success would say set the company up for success would say set the company up for success in the short term, but add risk in the in the short term, but add risk in the in the short term, but add risk in the long term. And there's a big need to I long term. And there's a big need to I long term. And there's a big need to I mean Ferrari was operating in the red mean Ferrari was operating in the red mean Ferrari was operating in the red when he came in. They generated losses when he came in. They generated losses when he came in. They generated losses like real income statement losses from like real income statement losses from like real income statement losses from 1992 to 1994. And by 96 they were back 1992 to 1994. And by 96 they were back 1992 to 1994. And by 96 they were back to break even and and by 97 they were to break even and and by 97 they were to break even and and by 97 they were profitable. But I would say all the ways profitable. But I would say all the ways profitable. But I would say all the ways to generate profits were not the best to generate profits were not the best to generate profits were not the best long-term solution and it took them time long-term solution and it took them time long-term solution and it took them time and a lot of effort to dig out of that and a lot of effort to dig out of that and a lot of effort to dig out of that hole. One of which was licensing the hole. One of which was licensing the hole. One of which was licensing the brand for merchandise. brand for merchandise. brand for merchandise. >> Yes. Now, there's a pro and a con here, >> Yes. Now, there's a pro and a con here, >> Yes. Now, there's a pro and a con here, but yes, I thought that's where you were but yes, I thought that's where you were but yes, I thought that's where you were going to go with this. going to go with this. going to go with this. >> Yeah. So, there were some smart things. >> Yeah. So, there were some smart things. >> Yeah. So, there were some smart things. Licensing the brand to put on luxury Licensing the brand to put on luxury Licensing the brand to put on luxury goods and some sportsware. They even goods and some sportsware. They even goods and some sportsware. They even started licensing it for toys. And when started licensing it for toys. And when started licensing it for toys. And when you're licensing the brand, that's you're licensing the brand, that's you're licensing the brand, that's basically 100% margin. I mean, it drops basically 100% margin. I mean, it drops basically 100% margin. I mean, it drops straight to the bottom line. So, when straight to the bottom line. So, when straight to the bottom line. So, when you're dire straits, it's it's really you're dire straits, it's it's really you're dire straits, it's it's really good. And so it has obvious allure, but good. And so it has obvious allure, but good. And so it has obvious allure, but they put the prancing horse on some real they put the prancing horse on some real they put the prancing horse on some real garbage over time. My favorite is by garbage over time. My favorite is by garbage over time. My favorite is by 2009, so you know, this is a full 15 2009, so you know, this is a full 15 2009, so you know, this is a full 15 years later, they put the prancing horse years later, they put the prancing horse years later, they put the prancing horse on an Acer netbook. on an Acer netbook. on an Acer netbook. >> Yes. Yes. >> Yes. Yes. >> Yes. Yes. >> Remember netbooks, David? >> Remember netbooks, David? >> Remember netbooks, David? >> Oh, yeah. I was wondering if you were >> Oh, yeah. I was wondering if you were >> Oh, yeah. I was wondering if you were going to find this. going to find this. going to find this. >> Just so destructive to their brand. It's >> Just so destructive to their brand. It's >> Just so destructive to their brand. It's the apex luxury brand of cars. like one the apex luxury brand of cars. like one the apex luxury brand of cars. like one of the greatest brands in the entire of the greatest brands in the entire of the greatest brands in the entire world and they have licensed it to this world and they have licensed it to this world and they have licensed it to this like underclocked plastic little piece like underclocked plastic little piece like underclocked plastic little piece of crap computer that is like the of crap computer that is like the of crap computer that is like the microcosm of brand destruction like the microcosm of brand destruction like the microcosm of brand destruction like the reason to resist the heroine of brand reason to resist the heroine of brand reason to resist the heroine of brand licensing. licensing. licensing. >> Yes, the Acer laptop was a real low >> Yes, the Acer laptop was a real low >> Yes, the Acer laptop was a real low point, point, point, >> but there's a lot of crap that it's on. >> but there's a lot of crap that it's on. >> but there's a lot of crap that it's on. >> There's a lot of crap that there's on. >> There's a lot of crap that there's on. >> There's a lot of crap that there's on. Now, there is some nuance here. If we Now, there is some nuance here. If we Now, there is some nuance here. If we were talking about Louis Vuitton or were talking about Louis Vuitton or were talking about Louis Vuitton or Hermes or PC Philippe or Rolex, Hermes or PC Philippe or Rolex, Hermes or PC Philippe or Rolex, this would be all bad. There would be no this would be all bad. There would be no this would be all bad. There would be no good reason besides easy profit dollars good reason besides easy profit dollars good reason besides easy profit dollars to do this. Ferrari is to do this. Ferrari is to do this. Ferrari is a different thing. a different thing. a different thing. >> Yes, >> Yes, >> Yes, >> it is an apex luxury brand >> it is an apex luxury brand >> it is an apex luxury brand unquestionably in the same way as all of unquestionably in the same way as all of unquestionably in the same way as all of those companies. But unlike those those companies. But unlike those those companies. But unlike those companies, it also has a couple hundred companies, it also has a couple hundred companies, it also has a couple hundred million raid fans. million raid fans. million raid fans. that it needs to serve. that it needs to serve. that it needs to serve. And also unlike those other companies, And also unlike those other companies, And also unlike those other companies, there's not actually a tension there. there's not actually a tension there. there's not actually a tension there. Ferrari clients and Ferrari collectors Ferrari clients and Ferrari collectors Ferrari clients and Ferrari collectors aren't upset by the fact that Ferrari aren't upset by the fact that Ferrari aren't upset by the fact that Ferrari has a couple hundred million, you know, has a couple hundred million, you know, has a couple hundred million, you know, commoner fans out there. In fact, commoner fans out there. In fact, commoner fans out there. In fact, they're happy about it, they're happy about it, they're happy about it, >> right? Ferrari is both a luxury brand >> right? Ferrari is both a luxury brand >> right? Ferrari is both a luxury brand and a giant international sports team. and a giant international sports team. and a giant international sports team. >> Yes. Yes. Exactly. They always talk >> Yes. Yes. Exactly. They always talk >> Yes. Yes. Exactly. They always talk about the tosi, you know, the hundreds about the tosi, you know, the hundreds about the tosi, you know, the hundreds of millions of people who are just fans of millions of people who are just fans of millions of people who are just fans of the brand and the spirit and the of the brand and the spirit and the of the brand and the spirit and the team. team. team. >> Yep. Yeah. Hermes doesn't have a couple >> Yep. Yeah. Hermes doesn't have a couple >> Yep. Yeah. Hermes doesn't have a couple hundred million teenage girls around the hundred million teenage girls around the hundred million teenage girls around the globe that have posters of Birkkins on globe that have posters of Birkkins on globe that have posters of Birkkins on their walls that they have to please, their walls that they have to please, their walls that they have to please, >> right? Ferrari is Hermes and Manchester >> right? Ferrari is Hermes and Manchester >> right? Ferrari is Hermes and Manchester United smashed together. United smashed together. United smashed together. >> Yes. Yes. >> Yes. Yes. >> Yes. Yes. >> Yeah. And that makes it super different. >> Yeah. And that makes it super different. >> Yeah. And that makes it super different. So I guess to your point that does So I guess to your point that does So I guess to your point that does validate the licensing their brand for validate the licensing their brand for validate the licensing their brand for merchandise strategy much more. Hey merchandise strategy much more. Hey merchandise strategy much more. Hey look, it doesn't validate the uh you look, it doesn't validate the uh you look, it doesn't validate the uh you know Acer netbook but uh there is like know Acer netbook but uh there is like know Acer netbook but uh there is like some actual justification to the some actual justification to the some actual justification to the activity. activity. activity. >> Yeah. >> Yeah. >> Yeah. >> So manufacturing should we talk about >> So manufacturing should we talk about >> So manufacturing should we talk about how that changes under Luca's tenure? how that changes under Luca's tenure? how that changes under Luca's tenure? >> Yeah. So I know a lot about >> Yeah. So I know a lot about >> Yeah. So I know a lot about manufacturing today. Did Luca really manufacturing today. Did Luca really manufacturing today. Did Luca really bring Ferrari's current manufacturing to bring Ferrari's current manufacturing to bring Ferrari's current manufacturing to life? life? life? >> I think so. Or at least he started it. >> I think so. Or at least he started it. >> I think so. Or at least he started it. It was really important to him that the It was really important to him that the It was really important to him that the factories be first rate. So he brought factories be first rate. So he brought factories be first rate. So he brought in great architects to redesign the in great architects to redesign the in great architects to redesign the factories. And this is when if you look factories. And this is when if you look factories. And this is when if you look at video or photos of Ferrari factories at video or photos of Ferrari factories at video or photos of Ferrari factories today, they have trees in them. He today, they have trees in them. He today, they have trees in them. He brought in the trees. brought in the trees. brought in the trees. >> Yeah, they're absolutely beautiful. >> Yeah, they're absolutely beautiful. >> Yeah, they're absolutely beautiful. We'll link to some factory tours in the We'll link to some factory tours in the We'll link to some factory tours in the show notes. I think my favorite thing show notes. I think my favorite thing show notes. I think my favorite thing about Ferrari is the manufacturing about Ferrari is the manufacturing about Ferrari is the manufacturing process. And it's both because of how process. And it's both because of how process. And it's both because of how cool it is from a nerdy perspective, but cool it is from a nerdy perspective, but cool it is from a nerdy perspective, but also the business model that enables for also the business model that enables for also the business model that enables for them. So after 1994, Ferrari does not them. So after 1994, Ferrari does not them. So after 1994, Ferrari does not have a stock of cars. They're not just have a stock of cars. They're not just have a stock of cars. They're not just sitting there at dealerships. They're sitting there at dealerships. They're sitting there at dealerships. They're not just sitting there at the factory. not just sitting there at the factory. not just sitting there at the factory. They don't manufacture them and then They don't manufacture them and then They don't manufacture them and then find buyers. It's the other way around. find buyers. It's the other way around. find buyers. It's the other way around. So for every single car, they only start So for every single car, they only start So for every single car, they only start manufacturing it after you order and you manufacturing it after you order and you manufacturing it after you order and you customize it. And it's important to know customize it. And it's important to know customize it. And it's important to know that by this point in history, every that by this point in history, every that by this point in history, every Ferrari is unique. There's so much Ferrari is unique. There's so much Ferrari is unique. There's so much customization that starts happening that customization that starts happening that customization that starts happening that every one that rolls off the lineup is every one that rolls off the lineup is every one that rolls off the lineup is actually its own custom car. I mean, actually its own custom car. I mean, actually its own custom car. I mean, maybe just a little detail here or there maybe just a little detail here or there maybe just a little detail here or there is different, but you will not find two is different, but you will not find two is different, but you will not find two that are identical. Yep. that are identical. Yep. that are identical. Yep. >> So, Ferrari factories are vertically >> So, Ferrari factories are vertically >> So, Ferrari factories are vertically integrated to the nth degree. Most car integrated to the nth degree. Most car integrated to the nth degree. Most car manufacturers these days are systems manufacturers these days are systems manufacturers these days are systems integrators. Kind of lame. They're just integrators. Kind of lame. They're just integrators. Kind of lame. They're just buying from a network of thousands of buying from a network of thousands of buying from a network of thousands of companies that make common parts that companies that make common parts that companies that make common parts that basically go in all of our cars as basically go in all of our cars as basically go in all of our cars as contracts to the big brands. And yes, contracts to the big brands. And yes, contracts to the big brands. And yes, the brands do some specification and the brands do some specification and the brands do some specification and then they take whatever it is some long then they take whatever it is some long then they take whatever it is some long time frame, 5 to 10 years, to actually time frame, 5 to 10 years, to actually time frame, 5 to 10 years, to actually build out the full supply chain, source build out the full supply chain, source build out the full supply chain, source the thousands of parts from all the the thousands of parts from all the the thousands of parts from all the suppliers and then integrate them into a suppliers and then integrate them into a suppliers and then integrate them into a car. Not Ferrari. They have trucks that car. Not Ferrari. They have trucks that car. Not Ferrari. They have trucks that roll up to the factory with raw ingots roll up to the factory with raw ingots roll up to the factory with raw ingots of aluminum and they are casting entire of aluminum and they are casting entire of aluminum and they are casting entire engines themselves right there in engines themselves right there in engines themselves right there in Marinelo. Everything happens on one plot Marinelo. Everything happens on one plot Marinelo. Everything happens on one plot of land. They build engine molds out of of land. They build engine molds out of of land. They build engine molds out of sand. They have 700° C furnaces and they sand. They have 700° C furnaces and they sand. They have 700° C furnaces and they operate an entire foundry right there on operate an entire foundry right there on operate an entire foundry right there on site. They do the same thing for body site. They do the same thing for body site. They do the same thing for body panel work and stitching the seats and panel work and stitching the seats and panel work and stitching the seats and more. more. more. >> Yes, it it really reminds me of Rolex in >> Yes, it it really reminds me of Rolex in >> Yes, it it really reminds me of Rolex in this regard. And there's another this regard. And there's another this regard. And there's another dimension that it's different from just dimension that it's different from just dimension that it's different from just about every other car manufacturer out about every other car manufacturer out about every other car manufacturer out there. Most other car companies, even there. Most other car companies, even there. Most other car companies, even the Porsches and the Audi's and the the Porsches and the Audi's and the the Porsches and the Audi's and the Lamborghinis, Lamborghinis, Lamborghinis, a lot of the models that they're making a lot of the models that they're making a lot of the models that they're making are based on shared platforms. So, like are based on shared platforms. So, like are based on shared platforms. So, like we'll get into this more toward the end we'll get into this more toward the end we'll get into this more toward the end of the episode here, but the Lamborghini of the episode here, but the Lamborghini of the episode here, but the Lamborghini Urus, the Lamborghini SUV, that is the Urus, the Lamborghini SUV, that is the Urus, the Lamborghini SUV, that is the same platform as the Porsche Cayenne, same platform as the Porsche Cayenne, same platform as the Porsche Cayenne, which is the same platform as the which is the same platform as the which is the same platform as the Volkswagen Tore. When you buy a Volkswagen Tore. When you buy a Volkswagen Tore. When you buy a Lamborghini Urus, you are buying a car Lamborghini Urus, you are buying a car Lamborghini Urus, you are buying a car that is essentially a Volkswagen TOG that is essentially a Volkswagen TOG that is essentially a Volkswagen TOG >> or an Audi Q8. Is that right? >> or an Audi Q8. Is that right? >> or an Audi Q8. Is that right? >> One of the Q's. Yeah. No Ferrari shares >> One of the Q's. Yeah. No Ferrari shares >> One of the Q's. Yeah. No Ferrari shares a platform with any other car. a platform with any other car. a platform with any other car. >> But you're right. When you're a big >> But you're right. When you're a big >> But you're right. When you're a big family of brands like this, you are family of brands like this, you are family of brands like this, you are looking for economies of scale and ways looking for economies of scale and ways looking for economies of scale and ways to share more across your line. And to share more across your line. And to share more across your line. And you're right, not Ferrari, it's the you're right, not Ferrari, it's the you're right, not Ferrari, it's the complete opposite. complete opposite. complete opposite. >> And some of this was starting to creep >> And some of this was starting to creep >> And some of this was starting to creep in in the last years of Enzo and the in in the last years of Enzo and the in in the last years of Enzo and the interregnum period when Fiat was taking interregnum period when Fiat was taking interregnum period when Fiat was taking control. Like there were some Fiat parts control. Like there were some Fiat parts control. Like there were some Fiat parts and switches that were making their way and switches that were making their way and switches that were making their way into Ferraris. And Luca stops all of into Ferraris. And Luca stops all of into Ferraris. And Luca stops all of this. He's like, "No, no, no. The only this. He's like, "No, no, no. The only this. He's like, "No, no, no. The only things that go into Ferraris are things that go into Ferraris are things that go into Ferraris are Ferraris. It's what makes us different. Ferraris. It's what makes us different. Ferraris. It's what makes us different. Yes. And because everything is so Yes. And because everything is so Yes. And because everything is so customizable, like we were talking customizable, like we were talking customizable, like we were talking about, every single one that rolls off about, every single one that rolls off about, every single one that rolls off the line is unique. They have left their the line is unique. They have left their the line is unique. They have left their manufacturing process to be very manufacturing process to be very manufacturing process to be very flexible and manual. They can make any flexible and manual. They can make any flexible and manual. They can make any car on any line. There's humans doing car on any line. There's humans doing car on any line. There's humans doing manual work at every station except for manual work at every station except for manual work at every station except for one, and that one is where they affix one, and that one is where they affix one, and that one is where they affix the windshield cuz you for safety the windshield cuz you for safety the windshield cuz you for safety reasons don't want to have people doing reasons don't want to have people doing reasons don't want to have people doing that. But it is crazy and unheard of that. But it is crazy and unheard of that. But it is crazy and unheard of across the car industry to be able to across the car industry to be able to across the car industry to be able to make any car on any manufacturing line. make any car on any manufacturing line. make any car on any manufacturing line. Now you might say, well that's really Now you might say, well that's really Now you might say, well that's really inefficient and it is. I mean they they inefficient and it is. I mean they they inefficient and it is. I mean they they don't invest in making a automated don't invest in making a automated don't invest in making a automated production line that can easily make production line that can easily make production line that can easily make lots of cars. lots of cars. lots of cars. >> Efficiency is not the point for Ferrari, >> Efficiency is not the point for Ferrari, >> Efficiency is not the point for Ferrari, >> right? They would make for a terrible >> right? They would make for a terrible >> right? They would make for a terrible scaled car company. Ferrari can operate scaled car company. Ferrari can operate scaled car company. Ferrari can operate on a much shorter time scale between on a much shorter time scale between on a much shorter time scale between design and actually getting a car out to design and actually getting a car out to design and actually getting a car out to customers since there's less overhead in customers since there's less overhead in customers since there's less overhead in getting started. And it is it's a it's a getting started. And it is it's a it's a getting started. And it is it's a it's a double-edged sword. You would never want double-edged sword. You would never want double-edged sword. You would never want to do a 100,000 cars a year with the to do a 100,000 cars a year with the to do a 100,000 cars a year with the Ferrari model. In fact, you you barely Ferrari model. In fact, you you barely Ferrari model. In fact, you you barely want to be doing 14,000. But the pro is want to be doing 14,000. But the pro is want to be doing 14,000. But the pro is that they can be really iterative and that they can be really iterative and that they can be really iterative and really responsive to new ideas. They really responsive to new ideas. They really responsive to new ideas. They could change their engine casting spec could change their engine casting spec could change their engine casting spec without involving a supplier and asking without involving a supplier and asking without involving a supplier and asking them to do a rebuild of something. And them to do a rebuild of something. And them to do a rebuild of something. And they can also get learnings from their they can also get learnings from their they can also get learnings from their F1 team quickly into cars since it's F1 team quickly into cars since it's F1 team quickly into cars since it's right across the street. Yep. I think right across the street. Yep. I think right across the street. Yep. I think this is like one of the interesting this is like one of the interesting this is like one of the interesting nerdy business model characteristics of nerdy business model characteristics of nerdy business model characteristics of the the the pros that come from a manufacturing pros that come from a manufacturing pros that come from a manufacturing process that sort of doesn't invest in process that sort of doesn't invest in process that sort of doesn't invest in overhead and doesn't allow for the overhead and doesn't allow for the overhead and doesn't allow for the cheapest incremental marginal car to cheapest incremental marginal car to cheapest incremental marginal car to roll off the line. It's more about how roll off the line. It's more about how roll off the line. It's more about how do we maintain sort of the most do we maintain sort of the most do we maintain sort of the most flexibility at any given point cuz we're flexibility at any given point cuz we're flexibility at any given point cuz we're selling expensive cars and we've got the selling expensive cars and we've got the selling expensive cars and we've got the margin to absorb it. Well, really this margin to absorb it. Well, really this margin to absorb it. Well, really this is how bespoke handmade craftsmanship is how bespoke handmade craftsmanship is how bespoke handmade craftsmanship applies to a modern automobile company. applies to a modern automobile company. applies to a modern automobile company. You know, it's the same dynamic as the You know, it's the same dynamic as the You know, it's the same dynamic as the other luxury companies as Hermes or you other luxury companies as Hermes or you other luxury companies as Hermes or you know, you think Hermes is investing in know, you think Hermes is investing in know, you think Hermes is investing in efficiencies in their factories like efficiencies in their factories like efficiencies in their factories like hell no. hell no. hell no. >> Right? And part of what you are buying, >> Right? And part of what you are buying, >> Right? And part of what you are buying, if you are interested in buying a if you are interested in buying a if you are interested in buying a Ferrari, especially let's say you came Ferrari, especially let's say you came Ferrari, especially let's say you came into this, you didn't want a Ferrari, into this, you didn't want a Ferrari, into this, you didn't want a Ferrari, you leave this episode, you're like you leave this episode, you're like you leave this episode, you're like actually I do kind of want a Ferrari. actually I do kind of want a Ferrari. actually I do kind of want a Ferrari. Part of what you are buying is the lore Part of what you are buying is the lore Part of what you are buying is the lore that I just shared. You kind of like the that I just shared. You kind of like the that I just shared. You kind of like the fact that this is a yeah there's robots fact that this is a yeah there's robots fact that this is a yeah there's robots but like a pseudo handmade bespoke but like a pseudo handmade bespoke but like a pseudo handmade bespoke inefficient manufacturing process to inefficient manufacturing process to inefficient manufacturing process to make it. It's wrapped up in the value make it. It's wrapped up in the value make it. It's wrapped up in the value proposition. proposition. proposition. >> There is a team of artisans and experts >> There is a team of artisans and experts >> There is a team of artisans and experts aided by technology that is making my aided by technology that is making my aided by technology that is making my Ferrari. Ferrari. Ferrari. >> Yes, that's exactly right. >> Yes, that's exactly right. >> Yes, that's exactly right. >> Yeah, it's super cool. So that's >> Yeah, it's super cool. So that's >> Yeah, it's super cool. So that's manufacturing. We've talked about Luca's manufacturing. We've talked about Luca's manufacturing. We've talked about Luca's embracing of the luxury strategy for embracing of the luxury strategy for embracing of the luxury strategy for Ferrari. Let's talk about markets and Ferrari. Let's talk about markets and Ferrari. Let's talk about markets and growth. Yes. growth. Yes. growth. Yes. >> And international. >> And international. >> And international. >> Yes. So, when we're talking about caps >> Yes. So, when we're talking about caps >> Yes. So, when we're talking about caps on the number of cars they create, it's on the number of cars they create, it's on the number of cars they create, it's not that you can't produce any more not that you can't produce any more not that you can't produce any more units without diluting your brand. It's units without diluting your brand. It's units without diluting your brand. It's that you can't sell any more units into that you can't sell any more units into that you can't sell any more units into your current market, your current market, your current market, >> correct? >> correct? >> correct? >> Without diluting your brand. New markets >> Without diluting your brand. New markets >> Without diluting your brand. New markets are perfectly allowed as long as it are perfectly allowed as long as it are perfectly allowed as long as it doesn't change the perception in the doesn't change the perception in the doesn't change the perception in the current markets that oh no, there's current markets that oh no, there's current markets that oh no, there's suddenly lots of Ferraris zooming around suddenly lots of Ferraris zooming around suddenly lots of Ferraris zooming around the streets and geographic segmentation the streets and geographic segmentation the streets and geographic segmentation can be a great luxury strategy. So he can be a great luxury strategy. So he can be a great luxury strategy. So he goes to start selling in China goes to start selling in China goes to start selling in China meaningfully for the first time and the meaningfully for the first time and the meaningfully for the first time and the timing couldn't have been better since timing couldn't have been better since timing couldn't have been better since in Europe it was becoming less in Europe it was becoming less in Europe it was becoming less fashionable to display your wealth. fashionable to display your wealth. fashionable to display your wealth. China. It was perfectly China. It was perfectly China. It was perfectly >> very fashionable, >> very fashionable, >> very fashionable, >> extremely fashionable. >> extremely fashionable. >> extremely fashionable. >> And this is a strategy that they then >> And this is a strategy that they then >> And this is a strategy that they then continued to run. Anytime a new continued to run. Anytime a new continued to run. Anytime a new geography sort of came up in global geography sort of came up in global geography sort of came up in global wealth or disposable income or was okay wealth or disposable income or was okay wealth or disposable income or was okay with becoming flashier, then suddenly with becoming flashier, then suddenly with becoming flashier, then suddenly the there's a whole new area where you the there's a whole new area where you the there's a whole new area where you can sell your Ferraris without changing can sell your Ferraris without changing can sell your Ferraris without changing perception in existing markets. perception in existing markets. perception in existing markets. >> Yes. And there's another subtle point >> Yes. And there's another subtle point >> Yes. And there's another subtle point here that applies here that applies here that applies very specifically to Ferrari. They make very specifically to Ferrari. They make very specifically to Ferrari. They make so few cars and sell so few cars to a so few cars and sell so few cars to a so few cars and sell so few cars to a given geography that it really is a given geography that it really is a given geography that it really is a special experience every time you even special experience every time you even special experience every time you even see one on the road. see one on the road. see one on the road. >> Yep. >> Yep. >> Yep. >> And it's really important not to dilute >> And it's really important not to dilute >> And it's really important not to dilute that. Owning a Ferrari is a truly rare that. Owning a Ferrari is a truly rare that. Owning a Ferrari is a truly rare and special experience. But even just and special experience. But even just and special experience. But even just seeing one, even just being next to one seeing one, even just being next to one seeing one, even just being next to one should be a rare experience. The minute should be a rare experience. The minute should be a rare experience. The minute that that stops being rare, part of the that that stops being rare, part of the that that stops being rare, part of the myth dies. myth dies. myth dies. >> The funniest thing is since a large >> The funniest thing is since a large >> The funniest thing is since a large number of Ferraris are owned by people number of Ferraris are owned by people number of Ferraris are owned by people with 10, 20, 30 Ferraris, they actually with 10, 20, 30 Ferraris, they actually with 10, 20, 30 Ferraris, they actually can soak up a lot of the units into can soak up a lot of the units into can soak up a lot of the units into garages that you never see anyway. garages that you never see anyway. garages that you never see anyway. >> Yes. Yeah. So if you're Ferrari and >> Yes. Yeah. So if you're Ferrari and >> Yes. Yeah. So if you're Ferrari and you're trying to manage scarcity, you you're trying to manage scarcity, you you're trying to manage scarcity, you sort of have an incentive to continue sort of have an incentive to continue sort of have an incentive to continue selling to the same person over and over selling to the same person over and over selling to the same person over and over and over because it is a way to generate and over because it is a way to generate and over because it is a way to generate a sale without having the problem of a a sale without having the problem of a a sale without having the problem of a Ferrari out on the streets feeling Ferrari out on the streets feeling Ferrari out on the streets feeling commonplace. commonplace. commonplace. >> Yes. Now there is one other related >> Yes. Now there is one other related >> Yes. Now there is one other related thing that Ferrari takes on during this thing that Ferrari takes on during this thing that Ferrari takes on during this time which is a lot of Ferrari clients time which is a lot of Ferrari clients time which is a lot of Ferrari clients particularly American clients particularly American clients particularly American clients really really really want a family Ferrari. They've got more want a family Ferrari. They've got more want a family Ferrari. They've got more use cases in their life for automobiles use cases in their life for automobiles use cases in their life for automobiles than Ferraris give them opportunity to than Ferraris give them opportunity to than Ferraris give them opportunity to use it for. You mean to tell me that a use it for. You mean to tell me that a use it for. You mean to tell me that a 45year-old man who really really wants 45year-old man who really really wants 45year-old man who really really wants to be out on the track or sort of to be out on the track or sort of to be out on the track or sort of envisions himself out on the track envisions himself out on the track envisions himself out on the track actually has most of his time where he actually has most of his time where he actually has most of his time where he can't be on the track but he wants to can't be on the track but he wants to can't be on the track but he wants to feel awesome and fast and risking his feel awesome and fast and risking his feel awesome and fast and risking his life and associate with a brand kind of life and associate with a brand kind of life and associate with a brand kind of like Ferrari but gosh that's actually like Ferrari but gosh that's actually like Ferrari but gosh that's actually just not the reality of his life these just not the reality of his life these just not the reality of his life these days. days. days. >> Right. Right. He might need to drive his >> Right. Right. He might need to drive his >> Right. Right. He might need to drive his kids to school or he might need to be kids to school or he might need to be kids to school or he might need to be driven by your chauffeur to an important driven by your chauffeur to an important driven by your chauffeur to an important business meeting. business meeting. business meeting. Really, you would like a four-door Really, you would like a four-door Really, you would like a four-door Ferrari for that. Ferrari for that. Ferrari for that. >> David, stop. >> David, stop. >> David, stop. >> I know. I know. Disgusting. I know. >> I know. I know. Disgusting. I know. >> I know. I know. Disgusting. I know. Well, it is disgusting. And that is why Well, it is disgusting. And that is why Well, it is disgusting. And that is why during this era, Ferrari takes on the during this era, Ferrari takes on the during this era, Ferrari takes on the Maserati brand under its wing. So, the Maserati brand under its wing. So, the Maserati brand under its wing. So, the Maserati brothers that we referenced Maserati brothers that we referenced Maserati brothers that we referenced earlier in the episode, that company earlier in the episode, that company earlier in the episode, that company after their ownership had gone through a after their ownership had gone through a after their ownership had gone through a whole series of ownership changes and whole series of ownership changes and whole series of ownership changes and the brand had had its ups and downs over the brand had had its ups and downs over the brand had had its ups and downs over the years. It ends up in the hands of the years. It ends up in the hands of the years. It ends up in the hands of Fiat. And in the late 90s, Fiat says, Fiat. And in the late 90s, Fiat says, Fiat. And in the late 90s, Fiat says, "Why don't we give Maserati management "Why don't we give Maserati management "Why don't we give Maserati management over to Ferrari?" And then we can, you over to Ferrari?" And then we can, you over to Ferrari?" And then we can, you know, have this connection between the know, have this connection between the know, have this connection between the Ferraris and the Maseratis. And we can Ferraris and the Maseratis. And we can Ferraris and the Maseratis. And we can have models that are Maseratis that are have models that are Maseratis that are have models that are Maseratis that are not Ferraris. These are not Ferraris, not Ferraris. These are not Ferraris, not Ferraris. These are not Ferraris, but there is a connection. And you know, but there is a connection. And you know, but there is a connection. And you know, we're happy to sell you a Quattroporte we're happy to sell you a Quattroporte we're happy to sell you a Quattroporte if you want it or a Gran Turismo if you if you want it or a Gran Turismo if you if you want it or a Gran Turismo if you want it. And uh that's what they do. And want it. And uh that's what they do. And want it. And uh that's what they do. And so this is when the Quattapporte, the so this is when the Quattapporte, the so this is when the Quattapporte, the Maserati Quattaporte launches in America Maserati Quattaporte launches in America Maserati Quattaporte launches in America >> and great demand. Unfortunately, in the >> and great demand. Unfortunately, in the >> and great demand. Unfortunately, in the beginning, it was not a very good car. beginning, it was not a very good car. beginning, it was not a very good car. It took him a few years to uh iron the It took him a few years to uh iron the It took him a few years to uh iron the kinks out, at least on the reliability kinks out, at least on the reliability kinks out, at least on the reliability front. But it's a brilliant brand front. But it's a brilliant brand front. But it's a brilliant brand strategy. It's almost like Rolex and strategy. It's almost like Rolex and strategy. It's almost like Rolex and Tutor. A tutor is never going to be a Tutor. A tutor is never going to be a Tutor. A tutor is never going to be a Rolex, but you can have a great use case Rolex, but you can have a great use case Rolex, but you can have a great use case for a tutor. for a tutor. for a tutor. >> I was going to make that connection. I >> I was going to make that connection. I >> I was going to make that connection. I was thinking about it, but I don't think was thinking about it, but I don't think was thinking about it, but I don't think I mean Maseratis are not made in I mean Maseratis are not made in I mean Maseratis are not made in Marinelo, right? Marinelo, right? Marinelo, right? >> No, they're not. So Ferrari gets the >> No, they're not. So Ferrari gets the >> No, they're not. So Ferrari gets the sort of market intelligence of sort of market intelligence of sort of market intelligence of what happens when we launch a Maserati what happens when we launch a Maserati what happens when we launch a Maserati in a market and kind of learnings from in a market and kind of learnings from in a market and kind of learnings from customers, but it's not like there's customers, but it's not like there's customers, but it's not like there's manufacturing synergies or onampus manufacturing synergies or onampus manufacturing synergies or onampus learnings from prototyping new things. I learnings from prototyping new things. I learnings from prototyping new things. I think they're pretty separate in their think they're pretty separate in their think they're pretty separate in their sort of R&D. Yes. So they showed great sort of R&D. Yes. So they showed great sort of R&D. Yes. So they showed great restraint in never launching a Fiat restraint in never launching a Fiat restraint in never launching a Fiat Ferrari car or standardizing on Ferrari car or standardizing on Ferrari car or standardizing on platforms the way that the Volkswagen platforms the way that the Volkswagen platforms the way that the Volkswagen Group does. Yeah. I think remarkably Group does. Yeah. I think remarkably Group does. Yeah. I think remarkably Ferrari has had the soul of a standalone Ferrari has had the soul of a standalone Ferrari has had the soul of a standalone company even though it was for a very company even though it was for a very company even though it was for a very long period of time 90% owned by Fiat. long period of time 90% owned by Fiat. long period of time 90% owned by Fiat. >> Yep. And Luca is a huge part of that as >> Yep. And Luca is a huge part of that as >> Yep. And Luca is a huge part of that as is Pierro too. Y him having the 10% is Pierro too. Y him having the 10% is Pierro too. Y him having the 10% ownership stake in place on the board ownership stake in place on the board ownership stake in place on the board keeps that continuity to Enzo and the keeps that continuity to Enzo and the keeps that continuity to Enzo and the Ferrari family even in a 10% minority Ferrari family even in a 10% minority Ferrari family even in a 10% minority ownership way in the company. ownership way in the company. ownership way in the company. >> Yep. Well, speaking of Ferrari >> Yep. Well, speaking of Ferrari >> Yep. Well, speaking of Ferrari also being part of the Fiat and Anelli also being part of the Fiat and Anelli also being part of the Fiat and Anelli empire, something pretty big is about to empire, something pretty big is about to empire, something pretty big is about to change here as we enter the early 2000s, change here as we enter the early 2000s, change here as we enter the early 2000s, which is Giani Anelli passes away. And which is Giani Anelli passes away. And which is Giani Anelli passes away. And all of a sudden, the Fiat Empire is now all of a sudden, the Fiat Empire is now all of a sudden, the Fiat Empire is now in crisis. But before we tell the story in crisis. But before we tell the story in crisis. But before we tell the story of what happens next there and how it of what happens next there and how it of what happens next there and how it incredibly ends up with the IPO of incredibly ends up with the IPO of incredibly ends up with the IPO of Ferrari. Now is a great time to tell you about Now is a great time to tell you about one of our favorite companies, Statsig. one of our favorite companies, Statsig. one of our favorite companies, Statsig. >> Yes. So listeners, as we've been talking >> Yes. So listeners, as we've been talking >> Yes. So listeners, as we've been talking about all episode, Ferrari builds cars about all episode, Ferrari builds cars about all episode, Ferrari builds cars designed for speed and precision. These designed for speed and precision. These designed for speed and precision. These are incredibly powerful machines, but are incredibly powerful machines, but are incredibly powerful machines, but every component is also engineered so every component is also engineered so every component is also engineered so the car performs predictably even when the car performs predictably even when the car performs predictably even when you're pushing it to the limit. And you you're pushing it to the limit. And you you're pushing it to the limit. And you know what? That is a great metaphor for know what? That is a great metaphor for know what? That is a great metaphor for modern software development. modern software development. modern software development. Teams today can ship faster than ever, Teams today can ship faster than ever, Teams today can ship faster than ever, especially teams building with AI coding especially teams building with AI coding especially teams building with AI coding tools. But when you're moving so tools. But when you're moving so tools. But when you're moving so quickly, the challenge becomes knowing quickly, the challenge becomes knowing quickly, the challenge becomes knowing which changes actually improved the which changes actually improved the which changes actually improved the product. Because when you go faster, you product. Because when you go faster, you product. Because when you go faster, you also increase the risk of unintended also increase the risk of unintended also increase the risk of unintended consequences. And that is especially consequences. And that is especially consequences. And that is especially true when AI is involved. LLMs of course true when AI is involved. LLMs of course true when AI is involved. LLMs of course introduce non-determinism into the introduce non-determinism into the introduce non-determinism into the product experience. So the same input product experience. So the same input product experience. So the same input doesn't always produce the same output. doesn't always produce the same output. doesn't always produce the same output. Small changes to prompts or models or Small changes to prompts or models or Small changes to prompts or models or user experience can actually have user experience can actually have user experience can actually have surprisingly large downstream effects. surprisingly large downstream effects. surprisingly large downstream effects. You can learn a bit from offline evals, You can learn a bit from offline evals, You can learn a bit from offline evals, but the real signal comes from real but the real signal comes from real but the real signal comes from real users. Yep. And that is where stats users. Yep. And that is where stats users. Yep. And that is where stats comes in. Stats gives product teams the comes in. Stats gives product teams the comes in. Stats gives product teams the control systems for fast product control systems for fast product control systems for fast product development, experimentation, feature development, experimentation, feature development, experimentation, feature flags, and product analytics all in one flags, and product analytics all in one flags, and product analytics all in one place. Teams can ship quickly, roll out place. Teams can ship quickly, roll out place. Teams can ship quickly, roll out changes safely, and measure how those changes safely, and measure how those changes safely, and measure how those changes actually impact users with a changes actually impact users with a changes actually impact users with a much tighter learning loop. Statsig lets much tighter learning loop. Statsig lets much tighter learning loop. Statsig lets you keep moving Ferrari level fast while you keep moving Ferrari level fast while you keep moving Ferrari level fast while uh making sure that what you're doing uh making sure that what you're doing uh making sure that what you're doing actually does make the product better. actually does make the product better. actually does make the product better. So, if you want to ship fast and know So, if you want to ship fast and know So, if you want to ship fast and know what's actually working, go to what's actually working, go to what's actually working, go to statsig.com/acquired statsig.com/acquired statsig.com/acquired to get started. So, in 2003, Johnny to get started. So, in 2003, Johnny to get started. So, in 2003, Johnny Anelli dies. Tragically, the logical Anelli dies. Tragically, the logical Anelli dies. Tragically, the logical heirs to the Anelli Empire in the Next heirs to the Anelli Empire in the Next heirs to the Anelli Empire in the Next Generation Generation Generation had also already died young. had also already died young. had also already died young. >> So, when Giani dies in 2003, his brother >> So, when Giani dies in 2003, his brother >> So, when Giani dies in 2003, his brother Ombberto takes over, but he only lives Ombberto takes over, but he only lives Ombberto takes over, but he only lives for another year. and then he passes for another year. and then he passes for another year. and then he passes away in 2004. When this happens, the away in 2004. When this happens, the away in 2004. When this happens, the empire is in chaos. Meanwhile, the fiat empire is in chaos. Meanwhile, the fiat empire is in chaos. Meanwhile, the fiat business is really struggling. Sales business is really struggling. Sales business is really struggling. Sales have been falling off a cliff. The have been falling off a cliff. The have been falling off a cliff. The company has a mountain of debt and the company has a mountain of debt and the company has a mountain of debt and the share price is like trending towards share price is like trending towards share price is like trending towards scraping the bottom here. M scraping the bottom here. M scraping the bottom here. M >> so the last surviving Annelli of Giani >> so the last surviving Annelli of Giani >> so the last surviving Annelli of Giani and Alberto's generation is Susanna, and Alberto's generation is Susanna, and Alberto's generation is Susanna, mother of Luca's best friend growing up. mother of Luca's best friend growing up. mother of Luca's best friend growing up. She calls Luca after Alberto dies and She calls Luca after Alberto dies and She calls Luca after Alberto dies and asks him to take over as Fiat chairman asks him to take over as Fiat chairman asks him to take over as Fiat chairman and replace Giani and Alberto in and replace Giani and Alberto in and replace Giani and Alberto in addition to Ferrari. So Luca will stay addition to Ferrari. So Luca will stay addition to Ferrari. So Luca will stay at Ferrari, but he will now come and at Ferrari, but he will now come and at Ferrari, but he will now come and serve the Anellis as sort of a steward serve the Anellis as sort of a steward serve the Anellis as sort of a steward and a bridge to the next generation. and a bridge to the next generation. and a bridge to the next generation. while they get the house in order and while they get the house in order and while they get the house in order and hopefully try to save Fiat along the hopefully try to save Fiat along the hopefully try to save Fiat along the way. way. way. >> So, he's chairman of the parent company. >> So, he's chairman of the parent company. >> So, he's chairman of the parent company. >> He's now chairman of Fiat and Ferrari, >> He's now chairman of Fiat and Ferrari, >> He's now chairman of Fiat and Ferrari, >> which they own 90% of. >> which they own 90% of. >> which they own 90% of. >> Yes. And at the same time, the chosen >> Yes. And at the same time, the chosen >> Yes. And at the same time, the chosen next heir in the generation below in the next heir in the generation below in the next heir in the generation below in the Anelli family is a man named John Elcan, Anelli family is a man named John Elcan, Anelli family is a man named John Elcan, who you might have heard of today. He's who you might have heard of today. He's who you might have heard of today. He's a celebrated investor and head of Exor, a celebrated investor and head of Exor, a celebrated investor and head of Exor, the publicly traded holding company, the publicly traded holding company, the publicly traded holding company, which is the Enelli family holding which is the Enelli family holding which is the Enelli family holding company. He's 27 years old at this point company. He's 27 years old at this point company. He's 27 years old at this point in time, though. He's a kid. He's like in time, though. He's a kid. He's like in time, though. He's a kid. He's like Luca back in the day when Enzo tapped Luca back in the day when Enzo tapped Luca back in the day when Enzo tapped him to take over Ferrari. Yep. So Luca him to take over Ferrari. Yep. So Luca him to take over Ferrari. Yep. So Luca and John Elcan have to work together to and John Elcan have to work together to and John Elcan have to work together to try to save Fiat. So the first thing try to save Fiat. So the first thing try to save Fiat. So the first thing they do is they turn to Sergio Marion they do is they turn to Sergio Marion they do is they turn to Sergio Marion who is a turnaround expert and financial who is a turnaround expert and financial who is a turnaround expert and financial engineer extraordinaire who has been CEO engineer extraordinaire who has been CEO engineer extraordinaire who has been CEO of SGS which is a Swiss consumer of SGS which is a Swiss consumer of SGS which is a Swiss consumer products testing company that is also products testing company that is also products testing company that is also part of the Annelli family investment part of the Annelli family investment part of the Annelli family investment empire and he's completely turned around empire and he's completely turned around empire and he's completely turned around SGS and saved the company there and they SGS and saved the company there and they SGS and saved the company there and they tap him to come in and help them do the tap him to come in and help them do the tap him to come in and help them do the same thing with Fiat. So he joins as CEO same thing with Fiat. So he joins as CEO same thing with Fiat. So he joins as CEO in 2004 with Luca as chairman and John in 2004 with Luca as chairman and John in 2004 with Luca as chairman and John Elen as the Anelli family Elen as the Anelli family Elen as the Anelli family representative, representative, representative, >> which it's interesting to note here, the >> which it's interesting to note here, the >> which it's interesting to note here, the Anelli family empire is larger than just Anelli family empire is larger than just Anelli family empire is larger than just Fiat. Fiat. Fiat. >> Yes. And this is how they really differ >> Yes. And this is how they really differ >> Yes. And this is how they really differ from like Ford and the Ford family. The from like Ford and the Ford family. The from like Ford and the Ford family. The Ford family was always focused on the Ford family was always focused on the Ford family was always focused on the Ford Motor Company. The Anelli family, Ford Motor Company. The Anelli family, Ford Motor Company. The Anelli family, Fiat was the crown jewel, but they Fiat was the crown jewel, but they Fiat was the crown jewel, but they invested in and built many businesses invested in and built many businesses invested in and built many businesses over the years throughout the over the years throughout the over the years throughout the generations. since they really generations. since they really generations. since they really diversified out of just one company. diversified out of just one company. diversified out of just one company. >> Yep. So, the three of them together >> Yep. So, the three of them together >> Yep. So, the three of them together miraculously miraculously miraculously turn around Fiat and save it from the turn around Fiat and save it from the turn around Fiat and save it from the Abyss through the combination of a Abyss through the combination of a Abyss through the combination of a couple things. First, they launch the couple things. First, they launch the couple things. First, they launch the smash hit new Fiat 500, the mass market smash hit new Fiat 500, the mass market smash hit new Fiat 500, the mass market platform, the city car for Europe. There platform, the city car for Europe. There platform, the city car for Europe. There was some precedent for this earlier. was some precedent for this earlier. was some precedent for this earlier. Volkswagen had relaunched the Beetle in Volkswagen had relaunched the Beetle in Volkswagen had relaunched the Beetle in 1997 and so that was some of the 1997 and so that was some of the 1997 and so that was some of the inspiration. But the Fiat 500 truly was inspiration. But the Fiat 500 truly was inspiration. But the Fiat 500 truly was an amazing success. an amazing success. an amazing success. >> Yeah. You've seen this car many times. >> Yeah. You've seen this car many times. >> Yeah. You've seen this car many times. >> Yes. And especially in Europe. Like it's >> Yes. And especially in Europe. Like it's >> Yes. And especially in Europe. Like it's it was popular in the US, but if you it was popular in the US, but if you it was popular in the US, but if you live in Europe, you saw the Fiat 500 all live in Europe, you saw the Fiat 500 all live in Europe, you saw the Fiat 500 all over cities throughout Europe. It sells over cities throughout Europe. It sells over cities throughout Europe. It sells a million units in five years. It wins a million units in five years. It wins a million units in five years. It wins the 2008 European Car of the Year award. the 2008 European Car of the Year award. the 2008 European Car of the Year award. It's truly truly a special car that It's truly truly a special car that It's truly truly a special car that saves the company. saves the company. saves the company. >> I got to say, it's so funny that we feel >> I got to say, it's so funny that we feel >> I got to say, it's so funny that we feel the need here on the Ferrari episode to the need here on the Ferrari episode to the need here on the Ferrari episode to extol the virtues of the Fiat 500. Uh, extol the virtues of the Fiat 500. Uh, extol the virtues of the Fiat 500. Uh, but it ends up becoming actually very but it ends up becoming actually very but it ends up becoming actually very important and path dependent to important and path dependent to important and path dependent to Ferrari's trajectory from here and why a Ferrari's trajectory from here and why a Ferrari's trajectory from here and why a few things happen to Ferrari. And it was few things happen to Ferrari. And it was few things happen to Ferrari. And it was designed by a man named Frank Stevenson designed by a man named Frank Stevenson designed by a man named Frank Stevenson who had been Luca's in-house design guy who had been Luca's in-house design guy who had been Luca's in-house design guy at Ferrari when Luka was just at at Ferrari when Luka was just at at Ferrari when Luka was just at Ferrari. So there's a Ferrari connection Ferrari. So there's a Ferrari connection Ferrari. So there's a Ferrari connection and lineage there that gets pushed up to and lineage there that gets pushed up to and lineage there that gets pushed up to the FIA 500. the FIA 500. the FIA 500. >> Now the other thing that happens and >> Now the other thing that happens and >> Now the other thing that happens and this is all Sergio is doing. this is all Sergio is doing. this is all Sergio is doing. >> He totally restructured the operations >> He totally restructured the operations >> He totally restructured the operations at Fiat. He was like an efficiency and at Fiat. He was like an efficiency and at Fiat. He was like an efficiency and cost cutting specialist. And at a cost cutting specialist. And at a cost cutting specialist. And at a company like Fiat, that actually is like company like Fiat, that actually is like company like Fiat, that actually is like really really important. really really important. really really important. >> The other thing he did is Fiat had a >> The other thing he did is Fiat had a >> The other thing he did is Fiat had a ill- fated partnership with GM with ill- fated partnership with GM with ill- fated partnership with GM with General Motors. Sergio gets them out of General Motors. Sergio gets them out of General Motors. Sergio gets them out of the partnership and engineers GM paying the partnership and engineers GM paying the partnership and engineers GM paying $2 billion to Fiat in order to end the $2 billion to Fiat in order to end the $2 billion to Fiat in order to end the partnership. And I think without that $2 partnership. And I think without that $2 partnership. And I think without that $2 billion, the company almost certainly billion, the company almost certainly billion, the company almost certainly would have died. would have died. would have died. >> Wow. He is a magician. >> Wow. He is a magician. >> Wow. He is a magician. >> He really is a magician. So Sergio, >> He really is a magician. So Sergio, >> He really is a magician. So Sergio, Luca, and John Elen come into Fiat in Luca, and John Elen come into Fiat in Luca, and John Elen come into Fiat in 2004. Within 2 years, they have returned 2004. Within 2 years, they have returned 2004. Within 2 years, they have returned the company to profitability. They've the company to profitability. They've the company to profitability. They've got a handle on the debt. 2007, the Fiat got a handle on the debt. 2007, the Fiat got a handle on the debt. 2007, the Fiat 500 comes out. It's a massive success. 500 comes out. It's a massive success. 500 comes out. It's a massive success. 2008 hits, the financial crisis. 2008 hits, the financial crisis. 2008 hits, the financial crisis. All of the US car companies are in All of the US car companies are in All of the US car companies are in really bad shape. Man, it's crazy that really bad shape. Man, it's crazy that really bad shape. Man, it's crazy that Fiat just barely got their house in Fiat just barely got their house in Fiat just barely got their house in order in time. order in time. order in time. >> Just barely. >> Just barely. >> Just barely. >> Otherwise, they could have been down >> Otherwise, they could have been down >> Otherwise, they could have been down with the rest of the global economy. with the rest of the global economy. with the rest of the global economy. >> Well, Sergio says, "We can play offense >> Well, Sergio says, "We can play offense >> Well, Sergio says, "We can play offense here." here." here." >> So, he engineers a partnership with >> So, he engineers a partnership with >> So, he engineers a partnership with Chrysler, which had been wise Chrysler, which had been wise Chrysler, which had been wise nationalized, taken over by the US nationalized, taken over by the US nationalized, taken over by the US government at this point in time. government at this point in time. government at this point in time. >> Right? They were in the worst of the >> Right? They were in the worst of the >> Right? They were in the worst of the positions of Ford, GM, and Chrysler, positions of Ford, GM, and Chrysler, positions of Ford, GM, and Chrysler, >> the big three automakers in the US. Yes. >> the big three automakers in the US. Yes. >> the big three automakers in the US. Yes. So, they engineer a partnership in 2008, So, they engineer a partnership in 2008, So, they engineer a partnership in 2008, Sergio does with Chrysler, and then Sergio does with Chrysler, and then Sergio does with Chrysler, and then fully acquires the company in 2014, fully acquires the company in 2014, fully acquires the company in 2014, >> and that creates FCA, Fiat Chrysler >> and that creates FCA, Fiat Chrysler >> and that creates FCA, Fiat Chrysler Automobiles, Automobiles, Automobiles, >> FCA, and basically for free. Fiat paid >> FCA, and basically for free. Fiat paid >> FCA, and basically for free. Fiat paid either zero or almost zero in sort of either zero or almost zero in sort of either zero or almost zero in sort of equity value for Chrysler. Wow. Yeah, it equity value for Chrysler. Wow. Yeah, it equity value for Chrysler. Wow. Yeah, it truly is amazing what they did and saved truly is amazing what they did and saved truly is amazing what they did and saved the company too. I mean, Chrysler and the company too. I mean, Chrysler and the company too. I mean, Chrysler and Dodge and Jeep and all of its brands are Dodge and Jeep and all of its brands are Dodge and Jeep and all of its brands are a thing today and part of Stalantis a thing today and part of Stalantis a thing today and part of Stalantis today because of what Fiat and Sergio today because of what Fiat and Sergio today because of what Fiat and Sergio did during the financial crisis. did during the financial crisis. did during the financial crisis. >> And Stellantis is the name for the >> And Stellantis is the name for the >> And Stellantis is the name for the merger between Fiat Chrysler Automobiles merger between Fiat Chrysler Automobiles merger between Fiat Chrysler Automobiles and and and >> Pujo. >> Pujo. >> Pujo. >> Pujo. Okay. >> Pujo. Okay. >> Pujo. Okay. >> The French company. >> The French company. >> The French company. >> Okay. >> Okay. >> Okay. >> Yeah. One of those French car companies >> Yeah. One of those French car companies >> Yeah. One of those French car companies that, you know, we're not going to make that, you know, we're not going to make that, you know, we're not going to make an episode about. an episode about. an episode about. So, as everything is stabilizing at Fiat So, as everything is stabilizing at Fiat So, as everything is stabilizing at Fiat and returning to success in 2010, Luca and returning to success in 2010, Luca and returning to success in 2010, Luca steps down from the Fiat chairmanship steps down from the Fiat chairmanship steps down from the Fiat chairmanship and returns solely full-time to Ferrari. and returns solely full-time to Ferrari. and returns solely full-time to Ferrari. John Elen assumes the Fiat chairmanship John Elen assumes the Fiat chairmanship John Elen assumes the Fiat chairmanship then he's now ready to, you know, be the then he's now ready to, you know, be the then he's now ready to, you know, be the stored and heir of the Enelli family and stored and heir of the Enelli family and stored and heir of the Enelli family and work with Sergio and running the Fiat work with Sergio and running the Fiat work with Sergio and running the Fiat Empire. But Empire. But Empire. But there is one cost there is one cost there is one cost to to to taking over Chrysler, which was that in taking over Chrysler, which was that in taking over Chrysler, which was that in doing so, Fiat had to assume Chrysler's doing so, Fiat had to assume Chrysler's doing so, Fiat had to assume Chrysler's debt, debt, debt, >> including about $5.5 billion that it >> including about $5.5 billion that it >> including about $5.5 billion that it owed the US and Canadian governments for owed the US and Canadian governments for owed the US and Canadian governments for the bailout. So when this happens, the the bailout. So when this happens, the the bailout. So when this happens, the combined debt load for FCA, Fiat combined debt load for FCA, Fiat combined debt load for FCA, Fiat Chrysler Automobiles, balloons up to Chrysler Automobiles, balloons up to Chrysler Automobiles, balloons up to over 11 billion. Fiat announces to Wall over 11 billion. Fiat announces to Wall over 11 billion. Fiat announces to Wall Street as part of the merger, though. Street as part of the merger, though. Street as part of the merger, though. Sergio does, hey, we've got a plan and Sergio does, hey, we've got a plan and Sergio does, hey, we've got a plan and we are going to reduce that from over 11 we are going to reduce that from over 11 we are going to reduce that from over 11 billion to 1 billion or less over the billion to 1 billion or less over the billion to 1 billion or less over the next four years by 2018. next four years by 2018. next four years by 2018. >> So they are forecasting a lot of cash >> So they are forecasting a lot of cash >> So they are forecasting a lot of cash flow that hey, this business is going to flow that hey, this business is going to flow that hey, this business is going to be great, super profitable. we're going be great, super profitable. we're going be great, super profitable. we're going to eliminate 10 billion dollars of debt. to eliminate 10 billion dollars of debt. to eliminate 10 billion dollars of debt. >> They are forecasting a lot of debt >> They are forecasting a lot of debt >> They are forecasting a lot of debt reduction. Some of that will come from reduction. Some of that will come from reduction. Some of that will come from cash flow. Okay? cash flow. Okay? cash flow. Okay? >> And some of that might come from other >> And some of that might come from other >> And some of that might come from other places. places. places. >> So Sergio needs, you know, a lot of cash >> So Sergio needs, you know, a lot of cash >> So Sergio needs, you know, a lot of cash to meet his promise to Wall Street and to meet his promise to Wall Street and to meet his promise to Wall Street and pay down the debt. Where's an easy place pay down the debt. Where's an easy place pay down the debt. Where's an easy place to find it? He's going to IPO to find it? He's going to IPO to find it? He's going to IPO Ferrari and use the proceeds to help pay Ferrari and use the proceeds to help pay Ferrari and use the proceeds to help pay down the Fiat Chrysler debt. Now, we down the Fiat Chrysler debt. Now, we down the Fiat Chrysler debt. Now, we should note through all of this, if you should note through all of this, if you should note through all of this, if you couldn't already foresee it, there was a couldn't already foresee it, there was a couldn't already foresee it, there was a huge conflict and power struggle brewing huge conflict and power struggle brewing huge conflict and power struggle brewing between Luca and Sergio. These two guys between Luca and Sergio. These two guys between Luca and Sergio. These two guys were both incredible were both incredible were both incredible auto company operators, but like cut auto company operators, but like cut auto company operators, but like cut from totally different cloths. from totally different cloths. from totally different cloths. >> Yeah. Luca is the ultimate car guy. He's >> Yeah. Luca is the ultimate car guy. He's >> Yeah. Luca is the ultimate car guy. He's a great businessman and he's a great a great businessman and he's a great a great businessman and he's a great executor of the luxury strategy for executor of the luxury strategy for executor of the luxury strategy for Ferrari, but in his mind, in his heart, Ferrari, but in his mind, in his heart, Ferrari, but in his mind, in his heart, the cars always have to come first. The the cars always have to come first. The the cars always have to come first. The great business decisions come out of the great business decisions come out of the great business decisions come out of the great car decisions. great car decisions. great car decisions. Sergio, on the other hand, is not a car Sergio, on the other hand, is not a car Sergio, on the other hand, is not a car guy. He came from a consumer products guy. He came from a consumer products guy. He came from a consumer products testing company. He is a financial testing company. He is a financial testing company. He is a financial engineer and an empire builder. And engineer and an empire builder. And engineer and an empire builder. And actually the great tragedy to this act actually the great tragedy to this act actually the great tragedy to this act of Ferrari is it could have been a of Ferrari is it could have been a of Ferrari is it could have been a beautiful partnership between the two of beautiful partnership between the two of beautiful partnership between the two of them and was truly was. They save Fiat them and was truly was. They save Fiat them and was truly was. They save Fiat together but ultimately Luca and Sergio together but ultimately Luca and Sergio together but ultimately Luca and Sergio are not going to be able to coexist and are not going to be able to coexist and are not going to be able to coexist and share power within the same structure. share power within the same structure. share power within the same structure. And for a while Luca going back to just And for a while Luca going back to just And for a while Luca going back to just Ferrari Ferrari Ferrari >> makes it work >> makes it work >> makes it work >> felt like it was it it was the solution >> felt like it was it it was the solution >> felt like it was it it was the solution that made sense. His passion was that made sense. His passion was that made sense. His passion was Ferrari. his history was there. He could Ferrari. his history was there. He could Ferrari. his history was there. He could go back to running it and be very happy go back to running it and be very happy go back to running it and be very happy and Sergio could leave it alone and and Sergio could leave it alone and and Sergio could leave it alone and continue running the Fiat Empire. But continue running the Fiat Empire. But continue running the Fiat Empire. But once Sergio needs the cash to pay down once Sergio needs the cash to pay down once Sergio needs the cash to pay down the Chrysler debt and turns to Ferrari, the Chrysler debt and turns to Ferrari, the Chrysler debt and turns to Ferrari, they're on a collision course because they're on a collision course because they're on a collision course because >> IPOing Ferrari is like completely >> IPOing Ferrari is like completely >> IPOing Ferrari is like completely anathema to Luca's way of being. anathema to Luca's way of being. anathema to Luca's way of being. Becoming a public company means you got Becoming a public company means you got Becoming a public company means you got to deliver consistent, predictable to deliver consistent, predictable to deliver consistent, predictable growth, which means hitting a drum beat growth, which means hitting a drum beat growth, which means hitting a drum beat of shipping more cars, making more of shipping more cars, making more of shipping more cars, making more models, adding more clients, raising models, adding more clients, raising models, adding more clients, raising prices. It's not like Luca doesn't want prices. It's not like Luca doesn't want prices. It's not like Luca doesn't want to do these things in a vacuum, but he to do these things in a vacuum, but he to do these things in a vacuum, but he wants to do these things very wants to do these things very wants to do these things very thoughtfully and over an extended period thoughtfully and over an extended period thoughtfully and over an extended period of time, not on a Wall Street calendar. of time, not on a Wall Street calendar. of time, not on a Wall Street calendar. >> And to have flexibility. >> And to have flexibility. >> And to have flexibility. >> Yes. not opposed to any of those things, >> Yes. not opposed to any of those things, >> Yes. not opposed to any of those things, just the way that you and I aren't just the way that you and I aren't just the way that you and I aren't opposed to doing things with Acquire, opposed to doing things with Acquire, opposed to doing things with Acquire, but we don't want to be locked in and but we don't want to be locked in and but we don't want to be locked in and committed. You want some organicness to committed. You want some organicness to committed. You want some organicness to how you run the business. You want the how you run the business. You want the how you run the business. You want the products to be these living, breathing products to be these living, breathing products to be these living, breathing things. You want to be able to rapidly things. You want to be able to rapidly things. You want to be able to rapidly change your mind in the face of new change your mind in the face of new change your mind in the face of new market conditions. market conditions. market conditions. >> Yep. I mean, hell, one of Luca's very >> Yep. I mean, hell, one of Luca's very >> Yep. I mean, hell, one of Luca's very first actions when he came back to first actions when he came back to first actions when he came back to Ferrari after Enzo's death was to cut Ferrari after Enzo's death was to cut Ferrari after Enzo's death was to cut production by half. production by half. production by half. >> Right. Right. Can you imagine doing that >> Right. Right. Can you imagine doing that >> Right. Right. Can you imagine doing that as a publicly traded company? as a publicly traded company? as a publicly traded company? >> Yeah. Making announce to Wall Street >> Yeah. Making announce to Wall Street >> Yeah. Making announce to Wall Street like, "Oh, hey, we think the right thing like, "Oh, hey, we think the right thing like, "Oh, hey, we think the right thing to do next year is to cut our production to do next year is to cut our production to do next year is to cut our production by half. Hope you're with us." by half. Hope you're with us." by half. Hope you're with us." >> Now, interestingly, at first, yes, >> Now, interestingly, at first, yes, >> Now, interestingly, at first, yes, they're publicly traded, but don't they they're publicly traded, but don't they they're publicly traded, but don't they only float 10% of Fiat's 90%. only float 10% of Fiat's 90%. only float 10% of Fiat's 90%. >> Yeah. Well, so here's what happens. >> Yeah. Well, so here's what happens. >> Yeah. Well, so here's what happens. Thanks to the Chrysler acquisition, it's Thanks to the Chrysler acquisition, it's Thanks to the Chrysler acquisition, it's not an option not to pay down the debt. not an option not to pay down the debt. not an option not to pay down the debt. The company, Fiat, the Empire, has to The company, Fiat, the Empire, has to The company, Fiat, the Empire, has to get the money. So the choice is kind of get the money. So the choice is kind of get the money. So the choice is kind of made for them. They have to side with made for them. They have to side with made for them. They have to side with Sergio Sergio Sergio >> because they have to go public and he's >> because they have to go public and he's >> because they have to go public and he's kind of the guy to run it as a public kind of the guy to run it as a public kind of the guy to run it as a public company. company. company. >> I mean taking Ferrari public is part of >> I mean taking Ferrari public is part of >> I mean taking Ferrari public is part of the plan of how this whole thing is the plan of how this whole thing is the plan of how this whole thing is going to work. going to work. going to work. >> Yeah. Do you think Luca was not a public >> Yeah. Do you think Luca was not a public >> Yeah. Do you think Luca was not a public company CEO? I think Luca probably had company CEO? I think Luca probably had company CEO? I think Luca probably had zero interest in taking Ferrari public zero interest in taking Ferrari public zero interest in taking Ferrari public and I think he had even less than zero and I think he had even less than zero and I think he had even less than zero interest in using proceeds from the interest in using proceeds from the interest in using proceeds from the Ferrari IPO and the other financial Ferrari IPO and the other financial Ferrari IPO and the other financial engineering that we're about to talk engineering that we're about to talk engineering that we're about to talk about to save Chrysler and Fiat. Luca about to save Chrysler and Fiat. Luca about to save Chrysler and Fiat. Luca did not care about any of that. Whereas did not care about any of that. Whereas did not care about any of that. Whereas in the other side, Sergio is kind of in the other side, Sergio is kind of in the other side, Sergio is kind of exactly the guy you would want to manage exactly the guy you would want to manage exactly the guy you would want to manage the street, to look for all the ways the street, to look for all the ways the street, to look for all the ways that the Ferrari business is quote that the Ferrari business is quote that the Ferrari business is quote unquote unoptimized to realize the full unquote unoptimized to realize the full unquote unoptimized to realize the full value of the asset. He's like the sort value of the asset. He's like the sort value of the asset. He's like the sort of leader that investors salivate over. of leader that investors salivate over. of leader that investors salivate over. >> Yes. Yes. So, in September 2014, Sergio >> Yes. Yes. So, in September 2014, Sergio >> Yes. Yes. So, in September 2014, Sergio unceremoniously fires Luca as chairman unceremoniously fires Luca as chairman unceremoniously fires Luca as chairman of Ferrari. The pretext is that the of Ferrari. The pretext is that the of Ferrari. The pretext is that the Ferrari F1 team has performed poorly in Ferrari F1 team has performed poorly in Ferrari F1 team has performed poorly in recent years, but recent years, but recent years, but >> which was true. >> which was true. >> which was true. >> I mean, was true, but like for God's >> I mean, was true, but like for God's >> I mean, was true, but like for God's sakes, just a few years earlier, Luca sakes, just a few years earlier, Luca sakes, just a few years earlier, Luca had engineered, you know, the greatest had engineered, you know, the greatest had engineered, you know, the greatest dynasty in Formula 1 history with dynasty in Formula 1 history with dynasty in Formula 1 history with Schumacher and Braun and Todd and like, Schumacher and Braun and Todd and like, Schumacher and Braun and Todd and like, you know, everybody knows what's really you know, everybody knows what's really you know, everybody knows what's really going on here. Also, part of the reason going on here. Also, part of the reason going on here. Also, part of the reason that the Ferrari Formula 1 team wasn't that the Ferrari Formula 1 team wasn't that the Ferrari Formula 1 team wasn't performing well at this point in time performing well at this point in time performing well at this point in time was that Formula 1 had switched to was that Formula 1 had switched to was that Formula 1 had switched to hybrid powertrains and Fiat never hybrid powertrains and Fiat never hybrid powertrains and Fiat never developed hybrid technology. So, Ferrari developed hybrid technology. So, Ferrari developed hybrid technology. So, Ferrari didn't have anywhere to turn to to get a didn't have anywhere to turn to to get a didn't have anywhere to turn to to get a head start like some of the other head start like some of the other head start like some of the other manufacturers that could turn to hybrid manufacturers that could turn to hybrid manufacturers that could turn to hybrid technology. So, it was going to take a technology. So, it was going to take a technology. So, it was going to take a while for Ferrari no matter what. At the while for Ferrari no matter what. At the while for Ferrari no matter what. At the end of the day though, it's it's sad end of the day though, it's it's sad end of the day though, it's it's sad like this is not how Luca's time at like this is not how Luca's time at like this is not how Luca's time at Ferrari should have ended. So Bernie Ferrari should have ended. So Bernie Ferrari should have ended. So Bernie Eckleston, you know, the Eckleston, you know, the Eckleston, you know, the >> Bernie F1 empressario, who Luca did very >> Bernie F1 empressario, who Luca did very >> Bernie F1 empressario, who Luca did very much not always see eye to eye with, much not always see eye to eye with, much not always see eye to eye with, gives a quote to the press when Luca is gives a quote to the press when Luca is gives a quote to the press when Luca is fired that sums it up better than I can. fired that sums it up better than I can. fired that sums it up better than I can. Bernie says, "Luca leaving is for me the Bernie says, "Luca leaving is for me the Bernie says, "Luca leaving is for me the same as Mr. Enzo dying. He has become same as Mr. Enzo dying. He has become same as Mr. Enzo dying. He has become Ferrari. You see him, Luca. You see Ferrari. You see him, Luca. You see Ferrari. You see him, Luca. You see Ferrari. You don't see anything else. Ferrari. You don't see anything else. Ferrari. You don't see anything else. You don't see Luca. M You don't see Luca. M You don't see Luca. M >> the context that you need to know for >> the context that you need to know for >> the context that you need to know for this quote that makes it even more this quote that makes it even more this quote that makes it even more impactful is if you listen to our F1 impactful is if you listen to our F1 impactful is if you listen to our F1 episode, you know that there was the FOD episode, you know that there was the FOD episode, you know that there was the FOD breakaway attempt of the group of teams breakaway attempt of the group of teams breakaway attempt of the group of teams that just a few years before this had that just a few years before this had that just a few years before this had tried to bust Bernie's hold on F1 and tried to bust Bernie's hold on F1 and tried to bust Bernie's hold on F1 and break away and start a rival formula break away and start a rival formula break away and start a rival formula racing league. That was led by Luca. racing league. That was led by Luca. racing league. That was led by Luca. >> Oh wow. Luca was like Bernie's arch >> Oh wow. Luca was like Bernie's arch >> Oh wow. Luca was like Bernie's arch adversary just a few years earlier. adversary just a few years earlier. adversary just a few years earlier. >> And so for Bernie to be this cordial >> And so for Bernie to be this cordial >> And so for Bernie to be this cordial >> and here's Bernie paying tribute to him >> and here's Bernie paying tribute to him >> and here's Bernie paying tribute to him like this. like this. like this. >> Yeah. >> Yeah. >> Yeah. >> Yeah. >> Yeah. >> Yeah. >> So with Luca gone the path is cleared to >> So with Luca gone the path is cleared to >> So with Luca gone the path is cleared to IPO Ferrari. And in 2015, Fiat and IPO Ferrari. And in 2015, Fiat and IPO Ferrari. And in 2015, Fiat and Sergio float, as you said, Ben, 10% of Sergio float, as you said, Ben, 10% of Sergio float, as you said, Ben, 10% of their 90% ownership stake in Ferrari on their 90% ownership stake in Ferrari on their 90% ownership stake in Ferrari on the New York Stock Exchange for an the New York Stock Exchange for an the New York Stock Exchange for an initial total market cap of Ferrari of initial total market cap of Ferrari of initial total market cap of Ferrari of 9.8 billion, which raises just under a 9.8 billion, which raises just under a 9.8 billion, which raises just under a billion dollars in cash that Fiat uses billion dollars in cash that Fiat uses billion dollars in cash that Fiat uses to pay down the debt. So 2015, Ferrari to pay down the debt. So 2015, Ferrari to pay down the debt. So 2015, Ferrari publicly traded worth $10 billion. That publicly traded worth $10 billion. That publicly traded worth $10 billion. That is up from the 192 million figure that is up from the 192 million figure that is up from the 192 million figure that we had talked about back in 1988. we had talked about back in 1988. we had talked about back in 1988. >> Right. >> Right. >> Right. But still nowhere near the heights that But still nowhere near the heights that But still nowhere near the heights that it would reach in the years to come. it would reach in the years to come. it would reach in the years to come. >> But that is Luca's legacy. That delta >> But that is Luca's legacy. That delta >> But that is Luca's legacy. That delta >> that totally that is turning Ferrari >> that totally that is turning Ferrari >> that totally that is turning Ferrari into a real business there. into a real business there. into a real business there. >> Yep. >> Yep. >> Yep. >> So a billion dollars in cash proceeds >> So a billion dollars in cash proceeds >> So a billion dollars in cash proceeds from the equity sale in the IPO. from the equity sale in the IPO. from the equity sale in the IPO. >> That that helps that that contributes to >> That that helps that that contributes to >> That that helps that that contributes to the total 10 billion that you need to the total 10 billion that you need to the total 10 billion that you need to reduce your debt by. Yeah. To go from 11 reduce your debt by. Yeah. To go from 11 reduce your debt by. Yeah. To go from 11 down to one. down to one. down to one. >> Yeah. >> Yeah. >> Yeah. >> You know, it helps, but it's not a lot. >> You know, it helps, but it's not a lot. >> You know, it helps, but it's not a lot. Well, Sergio had another uh Well, Sergio had another uh Well, Sergio had another uh >> this one is ridiculous. >> this one is ridiculous. >> this one is ridiculous. >> Financial engineering coup up his sleeve >> Financial engineering coup up his sleeve >> Financial engineering coup up his sleeve as part of the spin-off of Ferrari and as part of the spin-off of Ferrari and as part of the spin-off of Ferrari and the whole transaction. They effectively the whole transaction. They effectively the whole transaction. They effectively transfer transfer transfer another $3.2 billion in Fiat Chrysler another $3.2 billion in Fiat Chrysler another $3.2 billion in Fiat Chrysler debt to Ferrari. So in total, Fiat debt to Ferrari. So in total, Fiat debt to Ferrari. So in total, Fiat Chrysler out of this transaction gets Chrysler out of this transaction gets Chrysler out of this transaction gets almost $4 billion in debt reduction. almost $4 billion in debt reduction. almost $4 billion in debt reduction. That'll make a dent. That'll make a dent. That'll make a dent. >> That'll make a dent. >> That'll make a dent. >> That'll make a dent. >> That'll make a real dent. >> That'll make a real dent. >> That'll make a real dent. >> The interesting thing is it was >> The interesting thing is it was >> The interesting thing is it was perfectly fine to do this because perfectly fine to do this because perfectly fine to do this because Ferrari turns into a great great Ferrari turns into a great great Ferrari turns into a great great business that is perfectly capable of business that is perfectly capable of business that is perfectly capable of paying down all that debt that was just paying down all that debt that was just paying down all that debt that was just transferred to them. transferred to them. transferred to them. >> Yes. Yes. Absolutely. You know, we're >> Yes. Yes. Absolutely. You know, we're >> Yes. Yes. Absolutely. You know, we're sort of telling the story from Luca's sort of telling the story from Luca's sort of telling the story from Luca's side here. From Sergio's side, this all side here. From Sergio's side, this all side here. From Sergio's side, this all makes total sense, right? There was very makes total sense, right? There was very makes total sense, right? There was very little risk involved in this little risk involved in this little risk involved in this transaction, transaction, transaction, >> right? It's actually quite genius, >> right? It's actually quite genius, >> right? It's actually quite genius, >> right? It helped Fiat Chrysler become a >> right? It helped Fiat Chrysler become a >> right? It helped Fiat Chrysler become a real going concern, successful company, real going concern, successful company, real going concern, successful company, one that exists today. And Ferrari is a one that exists today. And Ferrari is a one that exists today. And Ferrari is a great little engine to pay down debt. great little engine to pay down debt. great little engine to pay down debt. >> Yeah. And not just a little engine like >> Yeah. And not just a little engine like >> Yeah. And not just a little engine like the value unlock that happens at Ferrari the value unlock that happens at Ferrari the value unlock that happens at Ferrari here to use investor speak is here to use investor speak is here to use investor speak is unprecedented. unprecedented. unprecedented. The company IPOs at a $9.8 billion The company IPOs at a $9.8 billion The company IPOs at a $9.8 billion market cap in 2015. Within a few years market cap in 2015. Within a few years market cap in 2015. Within a few years it's trading at you know what 90 billion it's trading at you know what 90 billion it's trading at you know what 90 billion flirting with 100 billion market cap. flirting with 100 billion market cap. flirting with 100 billion market cap. >> Yeah. As of a few years ago they hit 90 >> Yeah. As of a few years ago they hit 90 >> Yeah. As of a few years ago they hit 90 billion. billion. billion. >> Yeah. Way way way higher than Stalantis >> Yeah. Way way way higher than Stalantis >> Yeah. Way way way higher than Stalantis market cap. Yes. If you're the Annelli market cap. Yes. If you're the Annelli market cap. Yes. If you're the Annelli family, this was a great financial family, this was a great financial family, this was a great financial transaction for you. transaction for you. transaction for you. >> It is interesting when you you often >> It is interesting when you you often >> It is interesting when you you often hear investors talk about unlocking hear investors talk about unlocking hear investors talk about unlocking value by spinning something off and value by spinning something off and value by spinning something off and getting rid of the conglomerate discount getting rid of the conglomerate discount getting rid of the conglomerate discount and isolating centers of value. That and isolating centers of value. That and isolating centers of value. That totally happened here. Ferrari was not totally happened here. Ferrari was not totally happened here. Ferrari was not appreciated by investors when it was appreciated by investors when it was appreciated by investors when it was nestled inside of Fiat for the real gem nestled inside of Fiat for the real gem nestled inside of Fiat for the real gem that it was. And as a publicly traded that it was. And as a publicly traded that it was. And as a publicly traded company on its own reporting its own company on its own reporting its own company on its own reporting its own financials, people piled in. sure financials, people piled in. sure financials, people piled in. sure attracted a lot of investor demand and attracted a lot of investor demand and attracted a lot of investor demand and still does. still does. still does. >> Yep. >> Yep. >> Yep. >> So, man, like so much about this story, >> So, man, like so much about this story, >> So, man, like so much about this story, you can't script what happens next. you can't script what happens next. you can't script what happens next. >> All is going according to plan. The Fiat >> All is going according to plan. The Fiat >> All is going according to plan. The Fiat Empire has never been better. Fiat is Empire has never been better. Fiat is Empire has never been better. Fiat is saved. Chrysler is saved. Value is saved. Chrysler is saved. Value is saved. Chrysler is saved. Value is unlocked at Ferrari. unlocked at Ferrari. unlocked at Ferrari. And then in 2018, just three years And then in 2018, just three years And then in 2018, just three years later, just three years later, the same later, just three years later, the same later, just three years later, the same year that Sergio had promised to Wall year that Sergio had promised to Wall year that Sergio had promised to Wall Street that he would pay down all of the Street that he would pay down all of the Street that he would pay down all of the debt at Via Chrysler, he dies debt at Via Chrysler, he dies debt at Via Chrysler, he dies suddenly and unexpectedly. suddenly and unexpectedly. suddenly and unexpectedly. >> This story, oh my god, again and again >> This story, oh my god, again and again >> This story, oh my god, again and again and again, those closest to Enzo and again, those closest to Enzo and again, those closest to Enzo himself, Ferrari the company, tragedy. himself, Ferrari the company, tragedy. himself, Ferrari the company, tragedy. >> Tragedy. Sergio unexpectedly dies of >> Tragedy. Sergio unexpectedly dies of >> Tragedy. Sergio unexpectedly dies of cardiac arrest following complications cardiac arrest following complications cardiac arrest following complications from shoulder surgery. Nobody expected from shoulder surgery. Nobody expected from shoulder surgery. Nobody expected that he was going to die. that he was going to die. that he was going to die. >> No. >> No. >> No. >> So once again, the whole empire is >> So once again, the whole empire is >> So once again, the whole empire is thrown into chaos. It's in a much better thrown into chaos. It's in a much better thrown into chaos. It's in a much better and more stable place than when Giani and more stable place than when Giani and more stable place than when Giani died. But still within Ferrari, there died. But still within Ferrari, there died. But still within Ferrari, there ends up being kind of a parade of CEOs ends up being kind of a parade of CEOs ends up being kind of a parade of CEOs over the next couple years. over the next couple years. over the next couple years. >> Caretaker CEOs. >> Caretaker CEOs. >> Caretaker CEOs. >> Yes. culminating in 2021 when the >> Yes. culminating in 2021 when the >> Yes. culminating in 2021 when the current CEO of Ferrari, Benedetto current CEO of Ferrari, Benedetto current CEO of Ferrari, Benedetto Vignia, is hired. And he's a new choice Vignia, is hired. And he's a new choice Vignia, is hired. And he's a new choice for the company, complete outsider, a for the company, complete outsider, a for the company, complete outsider, a tech guy, a former, I believe physicist tech guy, a former, I believe physicist tech guy, a former, I believe physicist or at least physics undergrad who ended or at least physics undergrad who ended or at least physics undergrad who ended up going into semiconductors. And if my up going into semiconductors. And if my up going into semiconductors. And if my memory serves, he holds the patent for memory serves, he holds the patent for memory serves, he holds the patent for the accelerometer. Or at least one of the accelerometer. Or at least one of the accelerometer. Or at least one of the patents for the accelerometer in the the patents for the accelerometer in the the patents for the accelerometer in the original iPhone. original iPhone. original iPhone. >> Yes. In the iPhone and you know, >> Yes. In the iPhone and you know, >> Yes. In the iPhone and you know, basically all mobile phones today, the basically all mobile phones today, the basically all mobile phones today, the accelerometers that are used there. accelerometers that are used there. accelerometers that are used there. That's that's Benadetto, That's that's Benadetto, That's that's Benadetto, >> a semiconductor guy, which actually >> a semiconductor guy, which actually >> a semiconductor guy, which actually makes a lot of sense for the direction makes a lot of sense for the direction makes a lot of sense for the direction that Ferrari and technology is heading. that Ferrari and technology is heading. that Ferrari and technology is heading. >> Yep. So the question is what happens at >> Yep. So the question is what happens at >> Yep. So the question is what happens at the company after the IPO? Well, on the the company after the IPO? Well, on the the company after the IPO? Well, on the one hand, a lot of the things that you one hand, a lot of the things that you one hand, a lot of the things that you would expect, Ferrari does increase would expect, Ferrari does increase would expect, Ferrari does increase production. They go even further into production. They go even further into production. They go even further into the luxury retail goods market. And in the luxury retail goods market. And in the luxury retail goods market. And in particular on this luxury retail goods particular on this luxury retail goods particular on this luxury retail goods market, it's interesting. They sort of market, it's interesting. They sort of market, it's interesting. They sort of bifurcate the strategy. The first thing bifurcate the strategy. The first thing bifurcate the strategy. The first thing they do is they they clean up all the they do is they they clean up all the they do is they they clean up all the old crappy merchandising and they kind old crappy merchandising and they kind old crappy merchandising and they kind of narrow it to this brand licensing in of narrow it to this brand licensing in of narrow it to this brand licensing in very specific categories with very very specific categories with very very specific categories with very specific partners. So Luxodica for specific partners. So Luxodica for specific partners. So Luxodica for glasses, Mont Blanc for pens, Rashard glasses, Mont Blanc for pens, Rashard glasses, Mont Blanc for pens, Rashard meal for watches, and Puma for shoes. So meal for watches, and Puma for shoes. So meal for watches, and Puma for shoes. So there's this like sort of cohesive, there's this like sort of cohesive, there's this like sort of cohesive, yeah, we're going to make stuff for the yeah, we're going to make stuff for the yeah, we're going to make stuff for the Tosi, but like there's a luxury Tosi, but like there's a luxury Tosi, but like there's a luxury associated with our brand that, you associated with our brand that, you associated with our brand that, you know, we have to stay true to. Then they know, we have to stay true to. Then they know, we have to stay true to. Then they go into a lifestyle category of their go into a lifestyle category of their go into a lifestyle category of their own of first party products. own of first party products. own of first party products. >> Yes, >> Yes, >> Yes, >> David, what is this? >> David, what is this? >> David, what is this? >> This is essentially Ferrari runway >> This is essentially Ferrari runway >> This is essentially Ferrari runway fashion. fashion. fashion. >> That's one pillar of it anyway. But >> That's one pillar of it anyway. But >> That's one pillar of it anyway. But yeah, it's this acknowledgement of, hey, yeah, it's this acknowledgement of, hey, yeah, it's this acknowledgement of, hey, there's a lot of people that want to there's a lot of people that want to there's a lot of people that want to participate in the Ferrari brand who are participate in the Ferrari brand who are participate in the Ferrari brand who are very affluent and they don't want to go very affluent and they don't want to go very affluent and they don't want to go buy any of these things from our buy any of these things from our buy any of these things from our partners. They want products from us partners. They want products from us partners. They want products from us that aren't cars. And traditionally, that aren't cars. And traditionally, that aren't cars. And traditionally, most of our customers, I don't know, 90% most of our customers, I don't know, 90% most of our customers, I don't know, 90% are men and men in their 50s. I think are men and men in their 50s. I think are men and men in their 50s. I think the average age is 52 of a Ferrari the average age is 52 of a Ferrari the average age is 52 of a Ferrari buyer. I believe 35% of people who are buyer. I believe 35% of people who are buyer. I believe 35% of people who are buying the lifestyle merchandise they're buying the lifestyle merchandise they're buying the lifestyle merchandise they're creating are women. They're really creating are women. They're really creating are women. They're really opening up the aperture of Ferrari opening up the aperture of Ferrari opening up the aperture of Ferrari represents something and can we give represents something and can we give represents something and can we give people more tokens to sort of adorn people more tokens to sort of adorn people more tokens to sort of adorn themselves in Ferrari and not just cars? themselves in Ferrari and not just cars? themselves in Ferrari and not just cars? >> Yep. It's an interesting strategy. I'm >> Yep. It's an interesting strategy. I'm >> Yep. It's an interesting strategy. I'm not sure I would do it. I get why not sure I would do it. I get why not sure I would do it. I get why they're doing it. I'm not sure I would they're doing it. I'm not sure I would they're doing it. I'm not sure I would do it. do it. do it. >> Yes. All that to say, certainly there >> Yes. All that to say, certainly there >> Yes. All that to say, certainly there are initiatives that come about as a are initiatives that come about as a are initiatives that come about as a result of Ferrari now being a public result of Ferrari now being a public result of Ferrari now being a public company and needing to show predictable company and needing to show predictable company and needing to show predictable growth and new avenues of growth to Wall growth and new avenues of growth to Wall growth and new avenues of growth to Wall Street, Street, Street, >> including theme parks. >> including theme parks. >> including theme parks. >> Including theme parks. Yes. >> Including theme parks. Yes. >> Including theme parks. Yes. >> They've opened two very different style >> They've opened two very different style >> They've opened two very different style theme parks. one in Spain and one in Abu theme parks. one in Spain and one in Abu theme parks. one in Spain and one in Abu Dhabi right next to the F1 racetrack Dhabi right next to the F1 racetrack Dhabi right next to the F1 racetrack there. From what I can tell, it's going there. From what I can tell, it's going there. From what I can tell, it's going well. I I think they're totally well. I I think they're totally well. I I think they're totally outsourced to third party partners the outsourced to third party partners the outsourced to third party partners the same way that you would treat a same way that you would treat a same way that you would treat a licensing deal, but I'd like to go to licensing deal, but I'd like to go to licensing deal, but I'd like to go to one at some point. Yeah, when I first one at some point. Yeah, when I first one at some point. Yeah, when I first read that this is what they had done in read that this is what they had done in read that this is what they had done in the last 10 years, I was a little bit of the last 10 years, I was a little bit of the last 10 years, I was a little bit of a head scratcher. But I get it that a head scratcher. But I get it that a head scratcher. But I get it that people want to experience the brand in a people want to experience the brand in a people want to experience the brand in a more visceral way. These products are so more visceral way. These products are so more visceral way. These products are so full of emotion and passion that merely full of emotion and passion that merely full of emotion and passion that merely seeing one drive by you once every few seeing one drive by you once every few seeing one drive by you once every few months on the street is not exactly the months on the street is not exactly the months on the street is not exactly the way to to cultivate fandom. Yep. So way to to cultivate fandom. Yep. So way to to cultivate fandom. Yep. So that's sort of one side of the ledger. that's sort of one side of the ledger. that's sort of one side of the ledger. On the other hand, a lot less than you'd On the other hand, a lot less than you'd On the other hand, a lot less than you'd expect actually changes. In fact, expect actually changes. In fact, expect actually changes. In fact, Ferrari becomes even more independent. Ferrari becomes even more independent. Ferrari becomes even more independent. You know, if you take as an axiom that You know, if you take as an axiom that You know, if you take as an axiom that the most important part of the soul of the most important part of the soul of the most important part of the soul of Ferrari is a Ferrari being a Ferrari and Ferrari is a Ferrari being a Ferrari and Ferrari is a Ferrari being a Ferrari and not being a rebadged Fiat 500 or not being a rebadged Fiat 500 or not being a rebadged Fiat 500 or Volkswagen Tore. Volkswagen Tore. Volkswagen Tore. Ferrari today is even farther away from Ferrari today is even farther away from Ferrari today is even farther away from Fiat than it was before the IPO. It Fiat than it was before the IPO. It Fiat than it was before the IPO. It really kind of reestablished Ferrari as really kind of reestablished Ferrari as really kind of reestablished Ferrari as its own separate entity. its own separate entity. its own separate entity. >> Yeah. So today it's still 10% owned by >> Yeah. So today it's still 10% owned by >> Yeah. So today it's still 10% owned by Pier Ferrari. A little over 20% is owned Pier Ferrari. A little over 20% is owned Pier Ferrari. A little over 20% is owned by the Enelli family with their holding by the Enelli family with their holding by the Enelli family with their holding company Exor. But that 20% was 90% company Exor. But that 20% was 90% company Exor. But that 20% was 90% before the IPO and what 81% right after before the IPO and what 81% right after before the IPO and what 81% right after the IPO. So they have really sold down the IPO. So they have really sold down the IPO. So they have really sold down that stake over time. 68% of it is now that stake over time. 68% of it is now that stake over time. 68% of it is now owned by public shareholders. owned by public shareholders. owned by public shareholders. I mean that that is an independent I mean that that is an independent I mean that that is an independent company. However, the voting shares are company. However, the voting shares are company. However, the voting shares are a different story. So together, Exor and a different story. So together, Exor and a different story. So together, Exor and Pierro have the right to vote about 49% Pierro have the right to vote about 49% Pierro have the right to vote about 49% of the voting shares. So it doesn't take of the voting shares. So it doesn't take of the voting shares. So it doesn't take much for them to control the vote on any much for them to control the vote on any much for them to control the vote on any given decision as long as they vote given decision as long as they vote given decision as long as they vote together. They just need to go sway one together. They just need to go sway one together. They just need to go sway one or 2% of the public float to vote with or 2% of the public float to vote with or 2% of the public float to vote with them as a block. them as a block. them as a block. >> Yes, that's true. I think the really >> Yes, that's true. I think the really >> Yes, that's true. I think the really interesting thing to look at is how the interesting thing to look at is how the interesting thing to look at is how the Ferrari model range has evolved. Ferrari model range has evolved. Ferrari model range has evolved. >> Yes. >> Yes. >> Yes. >> In the years since the IPO. >> In the years since the IPO. >> In the years since the IPO. >> Yes. Oh, I'm so glad you took it here. >> Yes. Oh, I'm so glad you took it here. >> Yes. Oh, I'm so glad you took it here. So, Ferrari effectively makes four types So, Ferrari effectively makes four types So, Ferrari effectively makes four types of cars that consumers can buy. 85% of of cars that consumers can buy. 85% of of cars that consumers can buy. 85% of units shipped fall into what they call units shipped fall into what they call units shipped fall into what they call the range. These cars are a few the range. These cars are a few the range. These cars are a few hundred,000 each. of course before any hundred,000 each. of course before any hundred,000 each. of course before any personalization or customization. personalization or customization. personalization or customization. >> So this is the collection of sports cars >> So this is the collection of sports cars >> So this is the collection of sports cars and GT Grand touring cars that have and GT Grand touring cars that have and GT Grand touring cars that have always been the core of Ferrari. always been the core of Ferrari. always been the core of Ferrari. >> Y >> Y >> Y >> you've got your mid-enine V8s and V6s. >> you've got your mid-enine V8s and V6s. >> you've got your mid-enine V8s and V6s. You've got your front engine V12s and You've got your front engine V12s and You've got your front engine V12s and you've got your hybrids that have been a you've got your hybrids that have been a you've got your hybrids that have been a relatively new addition. relatively new addition. relatively new addition. >> Yep. This is your Amalfi, your Roma, >> Yep. This is your Amalfi, your Roma, >> Yep. This is your Amalfi, your Roma, your Tesserosa, your 12 cylindry, these your Tesserosa, your 12 cylindry, these your Tesserosa, your 12 cylindry, these sorts of models. So that's 85% and sorts of models. So that's 85% and sorts of models. So that's 85% and actually sometimes it flexes up even actually sometimes it flexes up even actually sometimes it flexes up even higher if they are not shipping a higher if they are not shipping a higher if they are not shipping a supercar at the moment because the supercar at the moment because the supercar at the moment because the supercar that we had talked about the supercar that we had talked about the supercar that we had talked about the F40, the F-50, the Enzo, the Laaf F40, the F-50, the Enzo, the Laaf F40, the F-50, the Enzo, the Laaf Ferrari, and now the F80, these are not Ferrari, and now the F80, these are not Ferrari, and now the F80, these are not being made all the time. They just make being made all the time. They just make being made all the time. They just make them for, I don't know, 24 months, once them for, I don't know, 24 months, once them for, I don't know, 24 months, once a decade. Special occasions. a decade. Special occasions. a decade. Special occasions. >> Yeah, shall we say? So at the end of the >> Yeah, shall we say? So at the end of the >> Yeah, shall we say? So at the end of the Luca era, that was the product lineup. Luca era, that was the product lineup. Luca era, that was the product lineup. It was the core range and the occasional It was the core range and the occasional It was the core range and the occasional Halo supercar. That was it. Halo supercar. That was it. Halo supercar. That was it. >> Now 10% are what they call the special >> Now 10% are what they call the special >> Now 10% are what they call the special series. These will run you between series. These will run you between series. These will run you between 500,000 and a million again before 500,000 and a million again before 500,000 and a million again before customization. David, what are these? customization. David, what are these? customization. David, what are these? >> These are like the special versions of >> These are like the special versions of >> These are like the special versions of the range cars, the high performance. the range cars, the high performance. the range cars, the high performance. You know, if you take like BMW, you You know, if you take like BMW, you You know, if you take like BMW, you know, you've got your regular BMWs and know, you've got your regular BMWs and know, you've got your regular BMWs and then you've got your M series or then you've got your M series or then you've got your M series or Mercedes, you've got the regular Mercedes, you've got the regular Mercedes, you've got the regular Mercedes, then you've got the AMG people Mercedes, then you've got the AMG people Mercedes, then you've got the AMG people would scoff at you for making that would scoff at you for making that would scoff at you for making that comparison. comparison. comparison. >> Part of me is dying by making this >> Part of me is dying by making this >> Part of me is dying by making this analogy for Ferrari. But it's telling, analogy for Ferrari. But it's telling, analogy for Ferrari. But it's telling, right, that this was added, this never right, that this was added, this never right, that this was added, this never existed before and now there's, you existed before and now there's, you existed before and now there's, you know, essentially the M series or the know, essentially the M series or the know, essentially the M series or the AMG series of the Ferrari range. AMG series of the Ferrari range. AMG series of the Ferrari range. >> Yeah. And they're a little more racy >> Yeah. And they're a little more racy >> Yeah. And they're a little more racy than the typical models. They're not than the typical models. They're not than the typical models. They're not track only. I mean, this isn't like the track only. I mean, this isn't like the track only. I mean, this isn't like the XX program or the Ferrari Challenge or XX program or the Ferrari Challenge or XX program or the Ferrari Challenge or any of these like cars that they make any of these like cars that they make any of these like cars that they make for racing in very specific for racing in very specific for racing in very specific competitions, but these are racier competitions, but these are racier competitions, but these are racier versions, higherend versions in more versions, higherend versions in more versions, higherend versions in more limited production of the range cars, limited production of the range cars, limited production of the range cars, more or less. more or less. more or less. >> Yep. And there's a lot of demand for >> Yep. And there's a lot of demand for >> Yep. And there's a lot of demand for them. them. them. >> Yes. And the way I just described that, >> Yes. And the way I just described that, >> Yes. And the way I just described that, someone at Ferrari is very mad. Fans of someone at Ferrari is very mad. Fans of someone at Ferrari is very mad. Fans of the brand are going to jump all over me the brand are going to jump all over me the brand are going to jump all over me for all the nuance that I missed there. for all the nuance that I missed there. for all the nuance that I missed there. But anyway, that's the special series. But anyway, that's the special series. But anyway, that's the special series. Then the remainder are the Icona series. Then the remainder are the Icona series. Then the remainder are the Icona series. That'll run you about $2.3 million for That'll run you about $2.3 million for That'll run you about $2.3 million for the current one, this V12 Daytona SP3. the current one, this V12 Daytona SP3. the current one, this V12 Daytona SP3. And of course, the supercar, which And of course, the supercar, which And of course, the supercar, which depending on the year is only 1 to 5% of depending on the year is only 1 to 5% of depending on the year is only 1 to 5% of the units that they ship, but it's the units that they ship, but it's the units that they ship, but it's extremely important to their profits extremely important to their profits extremely important to their profits given those supercars run three half given those supercars run three half given those supercars run three half to$5 million. And and we'll come back to to$5 million. And and we'll come back to to$5 million. And and we'll come back to just how important it is to their just how important it is to their just how important it is to their profits. Yes. Yes. So, basically what profits. Yes. Yes. So, basically what profits. Yes. Yes. So, basically what they've done is they've added a second they've done is they've added a second they've done is they've added a second series to each aspect of the core lineup series to each aspect of the core lineup series to each aspect of the core lineup before the IPO. They've kind of doubled before the IPO. They've kind of doubled before the IPO. They've kind of doubled the model range. the model range. the model range. >> The Icona exists for a very particular >> The Icona exists for a very particular >> The Icona exists for a very particular reason, and I will explain that in a reason, and I will explain that in a reason, and I will explain that in a minute when we get to financials. minute when we get to financials. minute when we get to financials. >> Okay. >> Okay. >> Okay. >> I think they kind of backed into it. The >> I think they kind of backed into it. The >> I think they kind of backed into it. The stated reason is that they pay homage to stated reason is that they pay homage to stated reason is that they pay homage to Ferraris from history. You know, the Ferraris from history. You know, the Ferraris from history. You know, the Daytona was this very famous one Daytona was this very famous one Daytona was this very famous one >> or the Monza, etc. But I'll hold my >> or the Monza, etc. But I'll hold my >> or the Monza, etc. But I'll hold my tongue for now on exactly how they they tongue for now on exactly how they they tongue for now on exactly how they they backed into it. backed into it. backed into it. >> Great. I think I know where you're >> Great. I think I know where you're >> Great. I think I know where you're going, but we'll save. going, but we'll save. going, but we'll save. >> It is also worth noting clients who were >> It is also worth noting clients who were >> It is also worth noting clients who were invited to the supercar or the Icona invited to the supercar or the Icona invited to the supercar or the Icona class. These people own at least 10 new class. These people own at least 10 new class. These people own at least 10 new Ferraris, maybe 20 plus Ferraris in a Ferraris, maybe 20 plus Ferraris in a Ferraris, maybe 20 plus Ferraris in a garage. These people are tens of garage. These people are tens of garage. These people are tens of millions of dollars deep into buying millions of dollars deep into buying millions of dollars deep into buying Ferraris. Ferraris. Ferraris. >> Yes, these are the Birkens and the >> Yes, these are the Birkens and the >> Yes, these are the Birkens and the Kelly's. You don't just walk in off the Kelly's. You don't just walk in off the Kelly's. You don't just walk in off the street and buy one. You need to buy a street and buy one. You need to buy a street and buy one. You need to buy a lot of scarves, etc. before you get lot of scarves, etc. before you get lot of scarves, etc. before you get invited to buy an Icona or a supercar. invited to buy an Icona or a supercar. invited to buy an Icona or a supercar. >> Yes, I mentioned earlier that every car >> Yes, I mentioned earlier that every car >> Yes, I mentioned earlier that every car that they make is unique as a part of that they make is unique as a part of that they make is unique as a part of their manufacturing process. They do their manufacturing process. They do their manufacturing process. They do take that to the most extreme. There are take that to the most extreme. There are take that to the most extreme. There are models that are literally called oneoff. models that are literally called oneoff. models that are literally called oneoff. >> Yes. So, they will make you and not just >> Yes. So, they will make you and not just >> Yes. So, they will make you and not just like you change the seat color. They like you change the seat color. They like you change the seat color. They will make you a custom car with a custom will make you a custom car with a custom will make you a custom car with a custom body style for very very very special body style for very very very special body style for very very very special VIP customers and they never disclose VIP customers and they never disclose VIP customers and they never disclose them. them. them. >> Yep. Okay. Ben, one model that you >> Yep. Okay. Ben, one model that you >> Yep. Okay. Ben, one model that you didn't talk about is didn't talk about is didn't talk about is the FUV. the FUV. the FUV. >> Yes. And you are not speaking with a >> Yes. And you are not speaking with a >> Yes. And you are not speaking with a lisp there. That is it is the Ferrari lisp there. That is it is the Ferrari lisp there. That is it is the Ferrari utility vehicle. utility vehicle. utility vehicle. >> The puros sangu the pureblooded. >> The puros sangu the pureblooded. >> The puros sangu the pureblooded. >> Yes. So this is a delicious tidbit of >> Yes. So this is a delicious tidbit of >> Yes. So this is a delicious tidbit of Ferrariism. The market really wants an Ferrariism. The market really wants an Ferrariism. The market really wants an SUV. 60% of Porsches sold at this point SUV. 60% of Porsches sold at this point SUV. 60% of Porsches sold at this point are SUVs. They're expensive and are SUVs. They're expensive and are SUVs. They're expensive and beautiful soccer mom and soccer dad beautiful soccer mom and soccer dad beautiful soccer mom and soccer dad cars. Yep. cars. Yep. cars. Yep. >> And when you go up market from Porsche, >> And when you go up market from Porsche, >> And when you go up market from Porsche, even to Lamborghini, which looks a lot even to Lamborghini, which looks a lot even to Lamborghini, which looks a lot like Ferrari from a production volume like Ferrari from a production volume like Ferrari from a production volume standpoint, they only make 11,000 cars a standpoint, they only make 11,000 cars a standpoint, they only make 11,000 cars a year. Also, year. Also, year. Also, >> and importantly is part of the VW >> and importantly is part of the VW >> and importantly is part of the VW Volkswagen group along with Audi. Volkswagen group along with Audi. Volkswagen group along with Audi. >> Yes. Astonishingly, over 60% of >> Yes. Astonishingly, over 60% of >> Yes. Astonishingly, over 60% of Lamborghinis now sold are their SUV. Lamborghinis now sold are their SUV. Lamborghinis now sold are their SUV. >> Yes. >> Yes. >> Yes. >> I mean, the classic idea of like guy >> I mean, the classic idea of like guy >> I mean, the classic idea of like guy driving a Lambo around the street, 60% driving a Lambo around the street, 60% driving a Lambo around the street, 60% of that brand's cars are soccer mom and of that brand's cars are soccer mom and of that brand's cars are soccer mom and soccer dad mobiles. soccer dad mobiles. soccer dad mobiles. >> It's the exact same thing that happened >> It's the exact same thing that happened >> It's the exact same thing that happened with Porsche. Porsche was the 911 with Porsche. Porsche was the 911 with Porsche. Porsche was the 911 company, and now they're the Cayenne and company, and now they're the Cayenne and company, and now they're the Cayenne and Macan company. Macan company. Macan company. >> If I ever get a distastefully large >> If I ever get a distastefully large >> If I ever get a distastefully large amount of crypto winnings, I'm going to amount of crypto winnings, I'm going to amount of crypto winnings, I'm going to go buy a Lambo, but it's going to be an go buy a Lambo, but it's going to be an go buy a Lambo, but it's going to be an Urus. Just uh Urus. Just uh Urus. Just uh >> Oh, no. >> Oh, no. >> Oh, no. >> Just for the irony. >> Just for the irony. >> Just for the irony. >> I hope in bright green. >> I hope in bright green. >> I hope in bright green. >> Yes. Yes. Okay. So, people really want >> Yes. Yes. Okay. So, people really want >> Yes. Yes. Okay. So, people really want one from Ferrari. So, what does Ferrari one from Ferrari. So, what does Ferrari one from Ferrari. So, what does Ferrari do? They don't call it an SUV, they call do? They don't call it an SUV, they call do? They don't call it an SUV, they call it an FUV. They debut a low top it an FUV. They debut a low top it an FUV. They debut a low top four-door almost SUV called the Piro four-door almost SUV called the Piro four-door almost SUV called the Piro Sangway. And as you mentioned, it Sangway. And as you mentioned, it Sangway. And as you mentioned, it translates to pure blood or translates to pure blood or translates to pure blood or thoroughbred. And it's almost as if thoroughbred. And it's almost as if thoroughbred. And it's almost as if they're saying yes, this is still a they're saying yes, this is still a they're saying yes, this is still a Ferrari. In fact, we're we're almost Ferrari. In fact, we're we're almost Ferrari. In fact, we're we're almost even overcompensating with the name and even overcompensating with the name and even overcompensating with the name and saying we really insist it is as saying we really insist it is as saying we really insist it is as thoroughbred of a Ferrari as you could thoroughbred of a Ferrari as you could thoroughbred of a Ferrari as you could possibly own by naming it that possibly own by naming it that possibly own by naming it that >> and it has a naturally aspirated V12 as >> and it has a naturally aspirated V12 as >> and it has a naturally aspirated V12 as its engine. its engine. its engine. >> Yeah. I mean, it is it's a it's a real >> Yeah. I mean, it is it's a it's a real >> Yeah. I mean, it is it's a it's a real Ferrari under the hood. Ferrari under the hood. Ferrari under the hood. >> Yes. >> Yes. >> Yes. >> The really disciplined thing that they >> The really disciplined thing that they >> The really disciplined thing that they did though, they capped total production did though, they capped total production did though, they capped total production at 20%. This ensures that when you see a at 20%. This ensures that when you see a at 20%. This ensures that when you see a Ferrari on the road, it will stay your Ferrari on the road, it will stay your Ferrari on the road, it will stay your classic idea of what a Ferrari is. It classic idea of what a Ferrari is. It classic idea of what a Ferrari is. It really protects the brand and it really protects the brand and it really protects the brand and it sacrifices a lot of short-term profits. sacrifices a lot of short-term profits. sacrifices a lot of short-term profits. And I got to say, I have immense And I got to say, I have immense And I got to say, I have immense reverence for the company for this sort reverence for the company for this sort reverence for the company for this sort of discipline. of discipline. of discipline. >> And it keeps this core pillar of Ferrari >> And it keeps this core pillar of Ferrari >> And it keeps this core pillar of Ferrari that just seeing one should be a special that just seeing one should be a special that just seeing one should be a special event. They are not going to go sell event. They are not going to go sell event. They are not going to go sell 60,000 piro Sangu. They're selling about 60,000 piro Sangu. They're selling about 60,000 piro Sangu. They're selling about 2500 to 3,000 of them per year globally. 2500 to 3,000 of them per year globally. 2500 to 3,000 of them per year globally. You are not going to see one on the You are not going to see one on the You are not going to see one on the streets tomorrow or the day after that streets tomorrow or the day after that streets tomorrow or the day after that or the day after that. or the day after that. or the day after that. >> Yes. I saw one this week, David, at an >> Yes. I saw one this week, David, at an >> Yes. I saw one this week, David, at an event that we were at valet parked event that we were at valet parked event that we were at valet parked outside and I thought, "Oh, I've outside and I thought, "Oh, I've outside and I thought, "Oh, I've actually never seen one of those actually never seen one of those actually never seen one of those before." Which is exactly how it should before." Which is exactly how it should before." Which is exactly how it should be every time you see a Ferrari. be every time you see a Ferrari. be every time you see a Ferrari. >> Yes. >> Yes. >> Yes. >> So, the other thing about their model >> So, the other thing about their model >> So, the other thing about their model range is they have become very diligent range is they have become very diligent range is they have become very diligent about their weight list, too. They are about their weight list, too. They are about their weight list, too. They are essentially sold out these days for the essentially sold out these days for the essentially sold out these days for the next 2 years. Most car companies could next 2 years. Most car companies could next 2 years. Most car companies could not tell you what their sales will look not tell you what their sales will look not tell you what their sales will look like next quarter, but as of today, like next quarter, but as of today, like next quarter, but as of today, Ferrari knows exactly what their sales Ferrari knows exactly what their sales Ferrari knows exactly what their sales will be and to who through the end of will be and to who through the end of will be and to who through the end of 2027 at least, maybe into early 28. And 2027 at least, maybe into early 28. And 2027 at least, maybe into early 28. And if you want one sooner, you're going to if you want one sooner, you're going to if you want one sooner, you're going to have to buy a used one. have to buy a used one. have to buy a used one. >> Yep. All right, Ben. So, how much do >> Yep. All right, Ben. So, how much do >> Yep. All right, Ben. So, how much do these models cost? And what were you these models cost? And what were you these models cost? And what were you teasing earlier with the uh the Icona teasing earlier with the uh the Icona teasing earlier with the uh the Icona >> thoughts on the Icona series? Okay, so >> thoughts on the Icona series? Okay, so >> thoughts on the Icona series? Okay, so the average selling price of a Ferrari the average selling price of a Ferrari the average selling price of a Ferrari is about $500,000, up from $350,000 is about $500,000, up from $350,000 is about $500,000, up from $350,000 in 2022. Wow. So, they have taken price in 2022. Wow. So, they have taken price in 2022. Wow. So, they have taken price a lot in the last few years. Now, the a lot in the last few years. Now, the a lot in the last few years. Now, the models technically start at $280,000, models technically start at $280,000, models technically start at $280,000, such as the Roma Spider, but A, that's such as the Roma Spider, but A, that's such as the Roma Spider, but A, that's on a 2-year weight list, and B, that's on a 2-year weight list, and B, that's on a 2-year weight list, and B, that's before you do any customization, and before you do any customization, and before you do any customization, and customization adds anywhere from 20% to customization adds anywhere from 20% to customization adds anywhere from 20% to 100% of the price of the car. Even more 100% of the price of the car. Even more 100% of the price of the car. Even more importantly in explaining that $500,000 importantly in explaining that $500,000 importantly in explaining that $500,000 number that is an average and averages number that is an average and averages number that is an average and averages hide the most interesting data. You know hide the most interesting data. You know hide the most interesting data. You know you have to pull it apart and look at you have to pull it apart and look at you have to pull it apart and look at the distribution. So as we consider the the distribution. So as we consider the the distribution. So as we consider the range the special series the Icona and range the special series the Icona and range the special series the Icona and then finally the supercar then finally the supercar then finally the supercar let's look at the distribution. Ferrari let's look at the distribution. Ferrari let's look at the distribution. Ferrari is incredibly topheavy as a business and is incredibly topheavy as a business and is incredibly topheavy as a business and I mean this in two ways. One is the I mean this in two ways. One is the I mean this in two ways. One is the obvious way. The most engaged customers obvious way. The most engaged customers obvious way. The most engaged customers obviously contribute an outsized amount obviously contribute an outsized amount obviously contribute an outsized amount to Ferrari's revenues. If you're a guy to Ferrari's revenues. If you're a guy to Ferrari's revenues. If you're a guy buying 20, you're a hugely hugely buying 20, you're a hugely hugely buying 20, you're a hugely hugely important part of Ferrari's business. important part of Ferrari's business. important part of Ferrari's business. But two, more interestingly, the most But two, more interestingly, the most But two, more interestingly, the most expensive models provide a huge amount expensive models provide a huge amount expensive models provide a huge amount of the profits for the entire company. of the profits for the entire company. of the profits for the entire company. >> So, let's look at just the F80, their >> So, let's look at just the F80, their >> So, let's look at just the F80, their current supercar. And by the way, all of current supercar. And by the way, all of current supercar. And by the way, all of these were sold out before the car was these were sold out before the car was these were sold out before the car was even announced to the public. Yes, even announced to the public. Yes, even announced to the public. Yes, >> that is how sold out it is. >> that is how sold out it is. >> that is how sold out it is. There are reasonable estimates that the There are reasonable estimates that the There are reasonable estimates that the F80 average selling price is about $4 F80 average selling price is about $4 F80 average selling price is about $4 million. They're making $799. million. They're making $799. million. They're making $799. So that is $3.2 billion of Ferraris just So that is $3.2 billion of Ferraris just So that is $3.2 billion of Ferraris just in that car. in that car. in that car. >> Wow. $3.2 billion of Ferraris in 799 >> Wow. $3.2 billion of Ferraris in 799 >> Wow. $3.2 billion of Ferraris in 799 examples. examples. examples. >> Yes. Now that's retail. So let's assume >> Yes. Now that's retail. So let's assume >> Yes. Now that's retail. So let's assume a 10% retail margin that goes to the a 10% retail margin that goes to the a 10% retail margin that goes to the dealership. So, $2.9 billion of F80 dealership. So, $2.9 billion of F80 dealership. So, $2.9 billion of F80 revenue to Ferrari. Let's assume those revenue to Ferrari. Let's assume those revenue to Ferrari. Let's assume those deliveries happen about over the course deliveries happen about over the course deliveries happen about over the course of 2.5 years, which means that give or of 2.5 years, which means that give or of 2.5 years, which means that give or take 1 and a4 billion of revenue in the take 1 and a4 billion of revenue in the take 1 and a4 billion of revenue in the first 12 months is going to Ferrari from first 12 months is going to Ferrari from first 12 months is going to Ferrari from that supercar. That's 15% of revenues that supercar. That's 15% of revenues that supercar. That's 15% of revenues for the year, just from that one car for the year, just from that one car for the year, just from that one car model. But that is not the whole story. model. But that is not the whole story. model. But that is not the whole story. Ferrari has disclosed that the Icona and Ferrari has disclosed that the Icona and Ferrari has disclosed that the Icona and the supercar models have higher margins the supercar models have higher margins the supercar models have higher margins than the rest of the line. Of course than the rest of the line. Of course than the rest of the line. Of course they do. they do. they do. >> And I've seen lots of very credible >> And I've seen lots of very credible >> And I've seen lots of very credible estimates. They're way higher. Like I've estimates. They're way higher. Like I've estimates. They're way higher. Like I've seen 80% I've seen 90% gross margins for seen 80% I've seen 90% gross margins for seen 80% I've seen 90% gross margins for the supercar. the supercar. the supercar. >> Wow. >> Wow. >> Wow. >> And this is intuitive. You can imagine >> And this is intuitive. You can imagine >> And this is intuitive. You can imagine when Ferrari throws an extra $10,000 of when Ferrari throws an extra $10,000 of when Ferrari throws an extra $10,000 of something nice in the supercar, they something nice in the supercar, they something nice in the supercar, they mark it up a lot more since the buyers mark it up a lot more since the buyers mark it up a lot more since the buyers are wildly price insensitive. So, I are wildly price insensitive. So, I are wildly price insensitive. So, I think that it's not crazy to assume that think that it's not crazy to assume that think that it's not crazy to assume that while that car will contribute 15% to while that car will contribute 15% to while that car will contribute 15% to revenues in the first 12 months, it's revenues in the first 12 months, it's revenues in the first 12 months, it's more like 30% of Ferrari's annual more like 30% of Ferrari's annual more like 30% of Ferrari's annual profits just from that one supercar in profits just from that one supercar in profits just from that one supercar in its first year. It could be even higher its first year. It could be even higher its first year. It could be even higher than 30%. than 30%. than 30%. >> Wow. Yeah. So, it's critically important >> Wow. Yeah. So, it's critically important >> Wow. Yeah. So, it's critically important to the business. to the business. to the business. >> The business is in the supercars. >> The business is in the supercars. >> The business is in the supercars. >> Yeah. >> Yeah. >> Yeah. >> I mean, this isn't quite true, but it is >> I mean, this isn't quite true, but it is >> I mean, this isn't quite true, but it is funny to think about this framing. The funny to think about this framing. The funny to think about this framing. The Ferraris you see driving around Ferraris you see driving around Ferraris you see driving around occasionally, those are just peanuts for occasionally, those are just peanuts for occasionally, those are just peanuts for their business. And it's really all their business. And it's really all their business. And it's really all about the ones that are locked away in about the ones that are locked away in about the ones that are locked away in the garages that you don't see that the garages that you don't see that the garages that you don't see that actually make the money. actually make the money. actually make the money. >> If you think about the F40 and where >> If you think about the F40 and where >> If you think about the F40 and where Enzo was in his life and where the Enzo was in his life and where the Enzo was in his life and where the company was when they released that, I company was when they released that, I company was when they released that, I think they had no idea the business think they had no idea the business think they had no idea the business model they unlocked with this limited model they unlocked with this limited model they unlocked with this limited run supercar. run supercar. run supercar. >> Yeah, that's totally true. And where I >> Yeah, that's totally true. And where I >> Yeah, that's totally true. And where I imagine you were going with the Icona imagine you were going with the Icona imagine you were going with the Icona series is like, boy, wouldn't it be nice series is like, boy, wouldn't it be nice series is like, boy, wouldn't it be nice if we had a whole another series with if we had a whole another series with if we had a whole another series with maybe not quite as good dynamics as maybe not quite as good dynamics as maybe not quite as good dynamics as that, but like pretty good dynamics. that, but like pretty good dynamics. that, but like pretty good dynamics. >> And gosh, it's a real shame we only have >> And gosh, it's a real shame we only have >> And gosh, it's a real shame we only have supercars once a decade. supercars once a decade. supercars once a decade. >> Wish we had something that was still >> Wish we had something that was still >> Wish we had something that was still pretty expensive and still pretty pretty expensive and still pretty pretty expensive and still pretty desirable and still close to as good of desirable and still close to as good of desirable and still close to as good of margins to smooth out that pesky margins to smooth out that pesky margins to smooth out that pesky seasonality, seasonality, seasonality, >> those down years when we don't have the >> those down years when we don't have the >> those down years when we don't have the supercars. Yeah, that's exactly right. supercars. Yeah, that's exactly right. supercars. Yeah, that's exactly right. So, that is what you were looking at So, that is what you were looking at So, that is what you were looking at with the Icona. with the Icona. with the Icona. >> Yeah. Yeah, that makes sense to me. >> Yeah. Yeah, that makes sense to me. >> Yeah. Yeah, that makes sense to me. >> The other thing that you should know, >> The other thing that you should know, >> The other thing that you should know, listeners, when you're sort of thinking listeners, when you're sort of thinking listeners, when you're sort of thinking about Ferrari, because we've said a lot about Ferrari, because we've said a lot about Ferrari, because we've said a lot of model names here, and that is odd, of model names here, and that is odd, of model names here, and that is odd, right? Most car companies have over the right? Most car companies have over the right? Most car companies have over the course of 30 years, very few car models. course of 30 years, very few car models. course of 30 years, very few car models. They've run them for a long time. When They've run them for a long time. When They've run them for a long time. When we did our Rolex episode, you you heard we did our Rolex episode, you you heard we did our Rolex episode, you you heard us talk about the Submariner from, I us talk about the Submariner from, I us talk about the Submariner from, I don't know, 1965 and the Submariner from don't know, 1965 and the Submariner from don't know, 1965 and the Submariner from today. one sort of continuous evolving today. one sort of continuous evolving today. one sort of continuous evolving line that maybe your grandpa had and line that maybe your grandpa had and line that maybe your grandpa had and your dad had one and you have one. your dad had one and you have one. your dad had one and you have one. Ferrari is the exact opposite. Over the Ferrari is the exact opposite. Over the Ferrari is the exact opposite. Over the next 5 years, they intend to launch four next 5 years, they intend to launch four next 5 years, they intend to launch four new models per year on average. That's new models per year on average. That's new models per year on average. That's 20 new model names in the next four 20 new model names in the next four 20 new model names in the next four years. And they discontinue models very years. And they discontinue models very years. And they discontinue models very quickly after launching them. So every quickly after launching them. So every quickly after launching them. So every four to 5 years or so. to really enforce four to 5 years or so. to really enforce four to 5 years or so. to really enforce each one of these things is very unique, each one of these things is very unique, each one of these things is very unique, very exclusive. Now, why doesn't very exclusive. Now, why doesn't very exclusive. Now, why doesn't everyone do that? Well, most people have everyone do that? Well, most people have everyone do that? Well, most people have to invest a huge amount upfront in to invest a huge amount upfront in to invest a huge amount upfront in tooling. But Ferrari doesn't. They can tooling. But Ferrari doesn't. They can tooling. But Ferrari doesn't. They can bespokely spin up a brand new car that bespokely spin up a brand new car that bespokely spin up a brand new car that never existed because they can do their never existed because they can do their never existed because they can do their own really nimble manufacturing process, own really nimble manufacturing process, own really nimble manufacturing process, >> right? They have such a different >> right? They have such a different >> right? They have such a different manufacturing process than any other manufacturing process than any other manufacturing process than any other major or boutique auto manufacturer. And major or boutique auto manufacturer. And major or boutique auto manufacturer. And this is the thing that the super this is the thing that the super this is the thing that the super boutique hypercar companies like the boutique hypercar companies like the boutique hypercar companies like the Paganis or the Koig Sigs etc. Paganis or the Koig Sigs etc. Paganis or the Koig Sigs etc. >> But those are like way way I don't know >> But those are like way way I don't know >> But those are like way way I don't know Pagani is probably 150th the Pagani is probably 150th the Pagani is probably 150th the manufacturer of Ferrari or something manufacturer of Ferrari or something manufacturer of Ferrari or something like that. like that. like that. >> Well, right. And those companies don't >> Well, right. And those companies don't >> Well, right. And those companies don't have all the tooling and manufacturing have all the tooling and manufacturing have all the tooling and manufacturing prowess that Ferrari does. So they can prowess that Ferrari does. So they can prowess that Ferrari does. So they can only make their models once a decade or only make their models once a decade or only make their models once a decade or maybe not quite that long, but they maybe not quite that long, but they maybe not quite that long, but they can't turn around and make new models can't turn around and make new models can't turn around and make new models and keep the momentum going year after and keep the momentum going year after and keep the momentum going year after year in the same way that Ferrari can. year in the same way that Ferrari can. year in the same way that Ferrari can. Four new models every year. And the Four new models every year. And the Four new models every year. And the really impressive thing about Ferrari is really impressive thing about Ferrari is really impressive thing about Ferrari is the cars are just different enough where the cars are just different enough where the cars are just different enough where they deserve different names, but a lot they deserve different names, but a lot they deserve different names, but a lot of the R&D and the components are of the R&D and the components are of the R&D and the components are carried over. When you look at the carried over. When you look at the carried over. When you look at the internals from some of these cars to the internals from some of these cars to the internals from some of these cars to the next generation that carry a different next generation that carry a different next generation that carry a different name, that have a different body style, name, that have a different body style, name, that have a different body style, they are different, but you can see the they are different, but you can see the they are different, but you can see the manufacturing learnings. I don't want to manufacturing learnings. I don't want to manufacturing learnings. I don't want to say they reuse components, but they're say they reuse components, but they're say they reuse components, but they're they're heavily inspired by a lot of the they're heavily inspired by a lot of the they're heavily inspired by a lot of the fixed cost work that was done before. fixed cost work that was done before. fixed cost work that was done before. >> Yep. Very interesting. Okay. So, you >> Yep. Very interesting. Okay. So, you >> Yep. Very interesting. Okay. So, you mentioned dealerships a minute ago and mentioned dealerships a minute ago and mentioned dealerships a minute ago and their margin. How did dealerships work their margin. How did dealerships work their margin. How did dealerships work in Ferrari? in Ferrari? in Ferrari? >> Yeah. So in the past, dealerships worked >> Yeah. So in the past, dealerships worked >> Yeah. So in the past, dealerships worked a lot more like the traditional model a lot more like the traditional model a lot more like the traditional model where dealers would have clients and where dealers would have clients and where dealers would have clients and they would get to allocate cars. Now the they would get to allocate cars. Now the they would get to allocate cars. Now the allocation is done centrally by Ferrari. allocation is done centrally by Ferrari. allocation is done centrally by Ferrari. And the dealerships really serve more as And the dealerships really serve more as And the dealerships really serve more as distribution, operations, and service. distribution, operations, and service. distribution, operations, and service. And I've been thinking about it less as And I've been thinking about it less as And I've been thinking about it less as a dealer network and more as a a dealer network and more as a a dealer network and more as a franchised service and delivery franchised service and delivery franchised service and delivery infrastructure with Ferrari owning the infrastructure with Ferrari owning the infrastructure with Ferrari owning the actual customer relationship. It's like actual customer relationship. It's like actual customer relationship. It's like you get to own the the local franchise you get to own the the local franchise you get to own the the local franchise in your city that takes care of this in your city that takes care of this in your city that takes care of this stuff, but they're Ferrari customers. stuff, but they're Ferrari customers. stuff, but they're Ferrari customers. They're not really your customers. They're not really your customers. They're not really your customers. >> And Ferrari now centrally controls the >> And Ferrari now centrally controls the >> And Ferrari now centrally controls the weight list. weight list. weight list. >> Yes. Dealers do, however, play a huge >> Yes. Dealers do, however, play a huge >> Yes. Dealers do, however, play a huge role in the secondary market. And role in the secondary market. And role in the secondary market. And Ferrari knows it's in their interest to Ferrari knows it's in their interest to Ferrari knows it's in their interest to have a thriving secondary market since have a thriving secondary market since have a thriving secondary market since given how few new cars there are, the given how few new cars there are, the given how few new cars there are, the entry- level Ferrari is really a used entry- level Ferrari is really a used entry- level Ferrari is really a used Ferrari. And so, it's the way to sort of Ferrari. And so, it's the way to sort of Ferrari. And so, it's the way to sort of cultivate the next generation of owners. cultivate the next generation of owners. cultivate the next generation of owners. So they incentivize dealers to buy and So they incentivize dealers to buy and So they incentivize dealers to buy and sell by giving them a 100% of the sell by giving them a 100% of the sell by giving them a 100% of the economics on a secondary market economics on a secondary market economics on a secondary market transaction rather than being involved transaction rather than being involved transaction rather than being involved in that in any way. So dealers often in that in any way. So dealers often in that in any way. So dealers often exist as a way to source used Ferraris exist as a way to source used Ferraris exist as a way to source used Ferraris for buyers. for buyers. for buyers. >> And the secondary market for Ferraris is >> And the secondary market for Ferraris is >> And the secondary market for Ferraris is enormous. There's a crazy stat out enormous. There's a crazy stat out enormous. There's a crazy stat out there. Over 90% of all Ferraris ever there. Over 90% of all Ferraris ever there. Over 90% of all Ferraris ever made going all the way back to 1947 and made going all the way back to 1947 and made going all the way back to 1947 and the 166 Baretta are still on the road. the 166 Baretta are still on the road. the 166 Baretta are still on the road. That's right. Nobody scraps a Ferrari. That's right. Nobody scraps a Ferrari. That's right. Nobody scraps a Ferrari. Like an ordinary car, it depreciates Like an ordinary car, it depreciates Like an ordinary car, it depreciates down to zero because it will eventually down to zero because it will eventually down to zero because it will eventually be scrapped. be scrapped. be scrapped. >> Ferraris only go off the road if they're >> Ferraris only go off the road if they're >> Ferraris only go off the road if they're involved in a terrible crash and, you involved in a terrible crash and, you involved in a terrible crash and, you know, can't be restored. There have been know, can't be restored. There have been know, can't be restored. There have been 330,000 Ferraris ever made and almost 330,000 Ferraris ever made and almost 330,000 Ferraris ever made and almost 300,000 of them are drivable, 300,000 of them are drivable, 300,000 of them are drivable, >> still on the road, still owned, still >> still on the road, still owned, still >> still on the road, still owned, still operated. It's truly incredible. operated. It's truly incredible. operated. It's truly incredible. >> It is incredible. Now, if you're >> It is incredible. Now, if you're >> It is incredible. Now, if you're Ferrari, it would be nice to participate Ferrari, it would be nice to participate Ferrari, it would be nice to participate in this whole secondary market somehow in this whole secondary market somehow in this whole secondary market somehow in sort of a tertiary way. in sort of a tertiary way. in sort of a tertiary way. >> Yeah. Tell us about Ferrari Classic K. >> Yeah. Tell us about Ferrari Classic K. >> Yeah. Tell us about Ferrari Classic K. So, let's say you buy a used Ferrari or So, let's say you buy a used Ferrari or So, let's say you buy a used Ferrari or you're getting yours ready for sale. It you're getting yours ready for sale. It you're getting yours ready for sale. It sure would be nice if there was a sure would be nice if there was a sure would be nice if there was a certificate from Ferrari saying that certificate from Ferrari saying that certificate from Ferrari saying that they looked it over and they looked at they looked it over and they looked at they looked it over and they looked at every part and it's genuine. Well, good every part and it's genuine. Well, good every part and it's genuine. Well, good news. There's a program for you called news. There's a program for you called news. There's a program for you called Ferrari Classic A. And for just $6 to Ferrari Classic A. And for just $6 to Ferrari Classic A. And for just $6 to $10,000, you can get it looked over and $10,000, you can get it looked over and $10,000, you can get it looked over and get just such a certificate. get just such a certificate. get just such a certificate. >> Now, it's interesting here. Ferrari is >> Now, it's interesting here. Ferrari is >> Now, it's interesting here. Ferrari is militant about what meets the bar for militant about what meets the bar for militant about what meets the bar for Ferrari Classic K certification. Ferrari Classic K certification. Ferrari Classic K certification. >> Yep. It has to all truly be original >> Yep. It has to all truly be original >> Yep. It has to all truly be original with official Ferrari parts and with official Ferrari parts and with official Ferrari parts and specifications. specifications. specifications. Which also means, you know, a lot of Which also means, you know, a lot of Which also means, you know, a lot of these cars have been out there for a these cars have been out there for a these cars have been out there for a long time, things happen, right? Means long time, things happen, right? Means long time, things happen, right? Means if you want to get it certified and you if you want to get it certified and you if you want to get it certified and you want to have it be officially blessed by want to have it be officially blessed by want to have it be officially blessed by Ferrari, you're going to have to pay Ferrari, you're going to have to pay Ferrari, you're going to have to pay Ferrari or your local dealer to restore Ferrari or your local dealer to restore Ferrari or your local dealer to restore it and return all the parts to official it and return all the parts to official it and return all the parts to official Ferrari parts. And you really only ever Ferrari parts. And you really only ever Ferrari parts. And you really only ever get it serviced at a Ferrari authorized get it serviced at a Ferrari authorized get it serviced at a Ferrari authorized service center. I mean, you're not service center. I mean, you're not service center. I mean, you're not getting your oil changes at your local getting your oil changes at your local getting your oil changes at your local oil change place. If you're a Ferrari oil change place. If you're a Ferrari oil change place. If you're a Ferrari owner, you definitely intend to sell it owner, you definitely intend to sell it owner, you definitely intend to sell it at some point. Like either you're going at some point. Like either you're going at some point. Like either you're going to trade it for another Ferrari, you're to trade it for another Ferrari, you're to trade it for another Ferrari, you're going to sell it so you can buy another going to sell it so you can buy another going to sell it so you can buy another one, you can add to your collection. one, you can add to your collection. one, you can add to your collection. Even if you're going to die with it and Even if you're going to die with it and Even if you're going to die with it and pass it on, you still want it to be this pass it on, you still want it to be this pass it on, you still want it to be this appreciating asset or asset that holds appreciating asset or asset that holds appreciating asset or asset that holds its value. So you are going to get it its value. So you are going to get it its value. So you are going to get it maintained with meticulous records from maintained with meticulous records from maintained with meticulous records from Ferrari and from Ferrari service Ferrari and from Ferrari service Ferrari and from Ferrari service centers. So it's a nice little closed centers. So it's a nice little closed centers. So it's a nice little closed ecosystem that they have created. ecosystem that they have created. ecosystem that they have created. >> Yes indeed. >> Yes indeed. >> Yes indeed. >> Okay. So why do they do all of this and >> Okay. So why do they do all of this and >> Okay. So why do they do all of this and why do they launch four new models every why do they launch four new models every why do they launch four new models every year and rapidly discontinue models and year and rapidly discontinue models and year and rapidly discontinue models and have all these clubs and events and have all these clubs and events and have all these clubs and events and track days and Classic K and a robustly track days and Classic K and a robustly track days and Classic K and a robustly tracked secondary market and there's all tracked secondary market and there's all tracked secondary market and there's all this infrastructure. Well, friend of the this infrastructure. Well, friend of the this infrastructure. Well, friend of the show, Brian Lum from Bailey Gford had a show, Brian Lum from Bailey Gford had a show, Brian Lum from Bailey Gford had a great insight on this. This is a great great insight on this. This is a great great insight on this. This is a great mental model. If you're going to create mental model. If you're going to create mental model. If you're going to create a brand that the whole world lusts after a brand that the whole world lusts after a brand that the whole world lusts after durably, you need to create a lot of durably, you need to create a lot of durably, you need to create a lot of infrastructure for fans to engage with infrastructure for fans to engage with infrastructure for fans to engage with to sort of hang their Ferrari fandom on. to sort of hang their Ferrari fandom on. to sort of hang their Ferrari fandom on. And so, you need to have ever more rare And so, you need to have ever more rare And so, you need to have ever more rare models so that every member of the models so that every member of the models so that every member of the Ferrari owners and future owners has a Ferrari owners and future owners has a Ferrari owners and future owners has a place to go. In luxury, you never want a place to go. In luxury, you never want a place to go. In luxury, you never want a customer to feel like they've done it customer to feel like they've done it customer to feel like they've done it all. You want a place for them to all. You want a place for them to all. You want a place for them to graduate to. Maybe that second Ferrari graduate to. Maybe that second Ferrari graduate to. Maybe that second Ferrari or going from your first used Ferrari to or going from your first used Ferrari to or going from your first used Ferrari to your first new Ferrari or getting your first new Ferrari or getting your first new Ferrari or getting invited to buy an Icona or participate invited to buy an Icona or participate invited to buy an Icona or participate in a race or buy the car that just came in a race or buy the car that just came in a race or buy the car that just came out with that brand new name that honors out with that brand new name that honors out with that brand new name that honors the model from 30 years ago. A lot of the model from 30 years ago. A lot of the model from 30 years ago. A lot of brands who want to be like Ferrari don't brands who want to be like Ferrari don't brands who want to be like Ferrari don't make the investments to have that amount make the investments to have that amount make the investments to have that amount of infrastructure and models and of infrastructure and models and of infrastructure and models and programs. The illusion is, oh well, programs. The illusion is, oh well, programs. The illusion is, oh well, we'll just ship very few units and we'll we'll just ship very few units and we'll we'll just ship very few units and we'll have simplicity. But in fact, the have simplicity. But in fact, the have simplicity. But in fact, the opposite is true. You need to have all opposite is true. You need to have all opposite is true. You need to have all this uniqueness and mobility for every this uniqueness and mobility for every this uniqueness and mobility for every client to build a brand like this. client to build a brand like this. client to build a brand like this. >> Yes. And this ultimately creates the >> Yes. And this ultimately creates the >> Yes. And this ultimately creates the Ferrari pyramid. Ferrari pyramid. Ferrari pyramid. >> Yes. There always needs to be a place >> Yes. There always needs to be a place >> Yes. There always needs to be a place for you to sort of graduate up to in for you to sort of graduate up to in for you to sort of graduate up to in your Ferrari fandom. And there's all your Ferrari fandom. And there's all your Ferrari fandom. And there's all this stuff around it, too. There's like this stuff around it, too. There's like this stuff around it, too. There's like a whole forest around the pyramid of a whole forest around the pyramid of a whole forest around the pyramid of different events that you interact with different events that you interact with different events that you interact with and community elements and it is just and community elements and it is just and community elements and it is just very very impressive and very high cost very very impressive and very high cost very very impressive and very high cost to just operate Ferrari day-to-day. to just operate Ferrari day-to-day. to just operate Ferrari day-to-day. Whereas I think a lot of product Whereas I think a lot of product Whereas I think a lot of product companies they make a product they ship companies they make a product they ship companies they make a product they ship it and then yeah there's some servicing it and then yeah there's some servicing it and then yeah there's some servicing but then there's maybe a lightweight but then there's maybe a lightweight but then there's maybe a lightweight customer touch point but operating the customer touch point but operating the customer touch point but operating the forest and pyramid and ecosystem that is forest and pyramid and ecosystem that is forest and pyramid and ecosystem that is the Ferrari universe is like a highcost the Ferrari universe is like a highcost the Ferrari universe is like a highcost everyday thing. Yep. And pyramid is such everyday thing. Yep. And pyramid is such everyday thing. Yep. And pyramid is such a great analogy, right? Because if you a great analogy, right? Because if you a great analogy, right? Because if you want to grow the pyramid, grow the want to grow the pyramid, grow the want to grow the pyramid, grow the business. And you want to do so business. And you want to do so business. And you want to do so sustainably or as sustainably as sustainably or as sustainably as sustainably or as sustainably as possible as it is to grow a luxury possible as it is to grow a luxury possible as it is to grow a luxury brand, you need to grow in all brand, you need to grow in all brand, you need to grow in all dimensions. You need to grow the base. dimensions. You need to grow the base. dimensions. You need to grow the base. You need to widen out the base and you You need to widen out the base and you You need to widen out the base and you need to grow the height, the vertical. need to grow the height, the vertical. need to grow the height, the vertical. So you need to be adding the Icona So you need to be adding the Icona So you need to be adding the Icona series and the special series, etc., series and the special series, etc., series and the special series, etc., etc. If you also want to be expanding etc. If you also want to be expanding etc. If you also want to be expanding out the base, everybody needs to have out the base, everybody needs to have out the base, everybody needs to have their place in the pyramid. their place in the pyramid. their place in the pyramid. >> That's right. And adding layers beneath. >> That's right. And adding layers beneath. >> That's right. And adding layers beneath. I mean, you could argue the entire I mean, you could argue the entire I mean, you could argue the entire tofosce, all absolutely 400 million tofosce, all absolutely 400 million tofosce, all absolutely 400 million Ferrari sports fans are sort of the base Ferrari sports fans are sort of the base Ferrari sports fans are sort of the base that you sort of enter and then graduate that you sort of enter and then graduate that you sort of enter and then graduate up from. I mean, here here's an example up from. I mean, here here's an example up from. I mean, here here's an example of the most absolutely insane top of of the most absolutely insane top of of the most absolutely insane top of pyramid experience. The most extreme pyramid experience. The most extreme pyramid experience. The most extreme clients can buy a former F1 car. clients can buy a former F1 car. clients can buy a former F1 car. >> Yes. like an actual F1 car that was >> Yes. like an actual F1 car that was >> Yes. like an actual F1 car that was raced in prior seasons. raced in prior seasons. raced in prior seasons. >> I was wondering if you were going to >> I was wondering if you were going to >> I was wondering if you were going to bring this up. bring this up. bring this up. >> But of course, you can't just go drive >> But of course, you can't just go drive >> But of course, you can't just go drive an F1 car and let's say you even store an F1 car and let's say you even store an F1 car and let's say you even store it in your garage. What? How you going it in your garage. What? How you going it in your garage. What? How you going to drive it out of your garage? So, what to drive it out of your garage? So, what to drive it out of your garage? So, what they do is they store it for you in they do is they store it for you in they do is they store it for you in Marinelo. Marinelo. Marinelo. >> It's like a library wine. >> It's like a library wine. >> It's like a library wine. >> And they staff it with an engineering >> And they staff it with an engineering >> And they staff it with an engineering team and a set of mechanics and a whole team and a set of mechanics and a whole team and a set of mechanics and a whole events team. And then they build events team. And then they build events team. And then they build programs and say, "Hey, do you want to programs and say, "Hey, do you want to programs and say, "Hey, do you want to come race at our private racetrack on come race at our private racetrack on come race at our private racetrack on this day? Do you want to come race your this day? Do you want to come race your this day? Do you want to come race your car? We'll get your team ready to drive car? We'll get your team ready to drive car? We'll get your team ready to drive it around." And maybe if you want to it around." And maybe if you want to it around." And maybe if you want to race it somewhere else, we'll fly the race it somewhere else, we'll fly the race it somewhere else, we'll fly the whole team in the car there. So, you whole team in the car there. So, you whole team in the car there. So, you just roll up and then you can drive your just roll up and then you can drive your just roll up and then you can drive your F1 car around that special track. I F1 car around that special track. I F1 car around that special track. I mean, the cost, the investment that I mean, the cost, the investment that I mean, the cost, the investment that I think most people don't realize to staff think most people don't realize to staff think most people don't realize to staff the full infrastructure is crazy. the full infrastructure is crazy. the full infrastructure is crazy. >> It's astounding. And that has always >> It's astounding. And that has always >> It's astounding. And that has always been the core of what Ferrari is and why been the core of what Ferrari is and why been the core of what Ferrari is and why it is unique. Going all the way back to it is unique. Going all the way back to it is unique. Going all the way back to 1947 and Enzo, like we've been talking 1947 and Enzo, like we've been talking 1947 and Enzo, like we've been talking about all episode, it is the combination about all episode, it is the combination about all episode, it is the combination of three things under one roof. a of three things under one roof. a of three things under one roof. a world-class racing team, a world-class world-class racing team, a world-class world-class racing team, a world-class racing car and racing car heritage racing car and racing car heritage racing car and racing car heritage construction company, and the suite of construction company, and the suite of construction company, and the suite of services and people needed to operate services and people needed to operate services and people needed to operate that available for hire to private that available for hire to private that available for hire to private clients. No other car company has that. clients. No other car company has that. clients. No other car company has that. >> Yep, that's exactly right. And most >> Yep, that's exactly right. And most >> Yep, that's exactly right. And most traditional car companies actually can't traditional car companies actually can't traditional car companies actually can't do stuff like this. Their scale prevents do stuff like this. Their scale prevents do stuff like this. Their scale prevents them. So they can't have only limited them. So they can't have only limited them. So they can't have only limited edition cars and they can't have a super edition cars and they can't have a super edition cars and they can't have a super wide range that gets completely rebooted wide range that gets completely rebooted wide range that gets completely rebooted every couple years. So they're missing every couple years. So they're missing every couple years. So they're missing an important piece of the pyramid. It's an important piece of the pyramid. It's an important piece of the pyramid. It's very easy to own all of the cars from a very easy to own all of the cars from a very easy to own all of the cars from a big company cuz most big companies make big company cuz most big companies make big company cuz most big companies make very few cars. The thing that makes you very few cars. The thing that makes you very few cars. The thing that makes you successful at scale prevents you from successful at scale prevents you from successful at scale prevents you from being able to execute Ferrari strategy. being able to execute Ferrari strategy. being able to execute Ferrari strategy. Okay, so there is one car we have not Okay, so there is one car we have not Okay, so there is one car we have not talked about yet before we catch up to talked about yet before we catch up to talked about yet before we catch up to present day. Well, it doesn't exist yet present day. Well, it doesn't exist yet present day. Well, it doesn't exist yet as of recording. as of recording. as of recording. >> Well, it's true. It's true. We are six >> Well, it's true. It's true. We are six >> Well, it's true. It's true. We are six weeks away from the unveil of the weeks away from the unveil of the weeks away from the unveil of the Ferrari Luche. Ferrari Luche. Ferrari Luche. >> Yes. >> Yes. >> Yes. >> What is the Luch, David? >> What is the Luch, David? >> What is the Luch, David? >> Ferrari's first electric vehicle >> Ferrari's first electric vehicle >> Ferrari's first electric vehicle designed designed designed in collaboration with Love from Johnny in collaboration with Love from Johnny in collaboration with Love from Johnny IV and Mark Newsome in San Francisco. IV and Mark Newsome in San Francisco. IV and Mark Newsome in San Francisco. >> And they unveiled this thing in a very >> And they unveiled this thing in a very >> And they unveiled this thing in a very unique way for Ferrari. Clearly unique way for Ferrari. Clearly unique way for Ferrari. Clearly targeting a different demographic. They targeting a different demographic. They targeting a different demographic. They unveiled just the internals, like just unveiled just the internals, like just unveiled just the internals, like just the buttons and dials and tactile feel the buttons and dials and tactile feel the buttons and dials and tactile feel of everything and the steering wheel at of everything and the steering wheel at of everything and the steering wheel at the top of the Transame pyramid in San the top of the Transame pyramid in San the top of the Transame pyramid in San Francisco. They have not revealed the Francisco. They have not revealed the Francisco. They have not revealed the outside of the car yet. Nope. They outside of the car yet. Nope. They outside of the car yet. Nope. They wanted the tip of the spear of wanted the tip of the spear of wanted the tip of the spear of excitement to be look at what Sir Johnny excitement to be look at what Sir Johnny excitement to be look at what Sir Johnny IV would make with his hands in a IV would make with his hands in a IV would make with his hands in a workshop 20 years after he designed the workshop 20 years after he designed the workshop 20 years after he designed the iPhone. what would he do today with all iPhone. what would he do today with all iPhone. what would he do today with all that learning and what would he do if it that learning and what would he do if it that learning and what would he do if it were a Ferrari and it's the exact were a Ferrari and it's the exact were a Ferrari and it's the exact opposite of the previous universe that opposite of the previous universe that opposite of the previous universe that they lived in which is let's show the they lived in which is let's show the they lived in which is let's show the body let's show the shape of the car body let's show the shape of the car body let's show the shape of the car let's appeal to the motorheads let's let's appeal to the motorheads let's let's appeal to the motorheads let's talk about the internal the the I mean talk about the internal the the I mean talk about the internal the the I mean the engine what we are talking about the engine what we are talking about the engine what we are talking about here is the buttons and the clickiness here is the buttons and the clickiness here is the buttons and the clickiness of the buttons of the buttons of the buttons >> I am so fascinated to watch what the >> I am so fascinated to watch what the >> I am so fascinated to watch what the rest of this car will look like in 6 rest of this car will look like in 6 rest of this car will look like in 6 weeks when they unveil weeks when they unveil weeks when they unveil Yeah, this was incredibly daring because Yeah, this was incredibly daring because Yeah, this was incredibly daring because so many of the longtime Ferrari clients, so many of the longtime Ferrari clients, so many of the longtime Ferrari clients, the hardcore collectors, the petrol the hardcore collectors, the petrol the hardcore collectors, the petrol heads, the people who love the old heads, the people who love the old heads, the people who love the old school small displacement V12s and school small displacement V12s and school small displacement V12s and worship at the altar of Enzo. worship at the altar of Enzo. worship at the altar of Enzo. This is anathema to them. Okay, so let's This is anathema to them. Okay, so let's This is anathema to them. Okay, so let's do a bull bear analysis just on what the do a bull bear analysis just on what the do a bull bear analysis just on what the luch could be. And I want to start with luch could be. And I want to start with luch could be. And I want to start with is the job to be done by an electric is the job to be done by an electric is the job to be done by an electric vehicle compatible in any way with why vehicle compatible in any way with why vehicle compatible in any way with why people buy Ferraris? people buy Ferraris? people buy Ferraris? >> So there's essentially zero interest in >> So there's essentially zero interest in >> So there's essentially zero interest in electric supercars. I mean truly you electric supercars. I mean truly you electric supercars. I mean truly you look around the industry. When Ferrari look around the industry. When Ferrari look around the industry. When Ferrari and others started preparing for it 10 and others started preparing for it 10 and others started preparing for it 10 years ago, everyone sort of thought that years ago, everyone sort of thought that years ago, everyone sort of thought that new internal combustion cars would be new internal combustion cars would be new internal combustion cars would be banned soon, at least in Europe, banned soon, at least in Europe, banned soon, at least in Europe, >> there were EU regulations saying that IC >> there were EU regulations saying that IC >> there were EU regulations saying that IC cars would have to be phased out by cars would have to be phased out by cars would have to be phased out by 2030, 2035, you know, at some point in 2030, 2035, you know, at some point in 2030, 2035, you know, at some point in time. time. time. >> But Ferrari has put all this work into >> But Ferrari has put all this work into >> But Ferrari has put all this work into building this car. building this car. building this car. >> They built a whole new factory, the E >> They built a whole new factory, the E >> They built a whole new factory, the E building. building. building. >> That's right. And they're going to go >> That's right. And they're going to go >> That's right. And they're going to go ahead with the launch. Lamborghini ahead with the launch. Lamborghini ahead with the launch. Lamborghini actually cancelled theirs and has actually cancelled theirs and has actually cancelled theirs and has switched it to a plug-in hybrid electric switched it to a plug-in hybrid electric switched it to a plug-in hybrid electric vehicle instead. And I think the point I vehicle instead. And I think the point I vehicle instead. And I think the point I keep kicking around is much like the keep kicking around is much like the keep kicking around is much like the quartz crisis in the world of watches, quartz crisis in the world of watches, quartz crisis in the world of watches, speed is no longer relevant. Yep. I speed is no longer relevant. Yep. I speed is no longer relevant. Yep. I mean, the F80 goes 0 to 60 in 2.2 mean, the F80 goes 0 to 60 in 2.2 mean, the F80 goes 0 to 60 in 2.2 seconds. This is the supercar. This is seconds. This is the supercar. This is seconds. This is the supercar. This is the 3 to5 million car. The Tesla Model S the 3 to5 million car. The Tesla Model S the 3 to5 million car. The Tesla Model S Plaid does it in 1.99 seconds. So the Plaid does it in 1.99 seconds. So the Plaid does it in 1.99 seconds. So the reason that people buy Ferraris, just reason that people buy Ferraris, just reason that people buy Ferraris, just like watches, has shifted to be about like watches, has shifted to be about like watches, has shifted to be about expressing yourself and having a unique expressing yourself and having a unique expressing yourself and having a unique driving experience. In a sense, electric driving experience. In a sense, electric driving experience. In a sense, electric cars are inongruent with the reason that cars are inongruent with the reason that cars are inongruent with the reason that you buy a Ferrari unless Ferrari can do you buy a Ferrari unless Ferrari can do you buy a Ferrari unless Ferrari can do something really cool and unique. something really cool and unique. something really cool and unique. >> Yep. Yep. And that is clearly what >> Yep. Yep. And that is clearly what >> Yep. Yep. And that is clearly what they're trying to do. they're trying to do. they're trying to do. >> Yes. So the the bull cases, we haven't >> Yes. So the the bull cases, we haven't >> Yes. So the the bull cases, we haven't seen this outside yet, but I mean the seen this outside yet, but I mean the seen this outside yet, but I mean the internal components have been absolutely internal components have been absolutely internal components have been absolutely awesome. I looked over at my wife and awesome. I looked over at my wife and awesome. I looked over at my wife and you know I thought I just want to touch you know I thought I just want to touch you know I thought I just want to touch every one of those tactile buttons and every one of those tactile buttons and every one of those tactile buttons and dials and and play with it. Ferrari dials and and play with it. Ferrari dials and and play with it. Ferrari could be expanding their audience here. could be expanding their audience here. could be expanding their audience here. I don't think it's a layer in the I don't think it's a layer in the I don't think it's a layer in the pyramid. I think it's a new pyramid. pyramid. I think it's a new pyramid. pyramid. I think it's a new pyramid. It's like a whole different It's like a whole different It's like a whole different >> they're going to appeal to a set of >> they're going to appeal to a set of >> they're going to appeal to a set of people that would have no interest in people that would have no interest in people that would have no interest in owning a traditional Ferrari. I mean owning a traditional Ferrari. I mean owning a traditional Ferrari. I mean like me. I I I have no interest in like me. I I I have no interest in like me. I I I have no interest in owning a traditional Ferrari. owning a traditional Ferrari. owning a traditional Ferrari. >> But gosh, I was like, "Oh, could I ever >> But gosh, I was like, "Oh, could I ever >> But gosh, I was like, "Oh, could I ever Well, would they ever take me as a Well, would they ever take me as a Well, would they ever take me as a client?" But depending what this car client?" But depending what this car client?" But depending what this car looks like, I could be very interested. looks like, I could be very interested. looks like, I could be very interested. >> Yes. And I think that is the daring >> Yes. And I think that is the daring >> Yes. And I think that is the daring element of it. They're creating element of it. They're creating element of it. They're creating something that kind of by nature has to something that kind of by nature has to something that kind of by nature has to exist in a parallel universe to their exist in a parallel universe to their exist in a parallel universe to their core client base. core client base. core client base. >> Yeah, they have always appealed to the >> Yeah, they have always appealed to the >> Yeah, they have always appealed to the gear heads. I mean, the engineering gear heads. I mean, the engineering gear heads. I mean, the engineering innovations have always appealed to a innovations have always appealed to a innovations have always appealed to a set of people, but this is a whole set of people, but this is a whole set of people, but this is a whole different universe of engineering. different universe of engineering. different universe of engineering. Here's one that I think is really cool. Here's one that I think is really cool. Here's one that I think is really cool. It's quad motor, one on each wheel, plus It's quad motor, one on each wheel, plus It's quad motor, one on each wheel, plus additional motors on each wheel that additional motors on each wheel that additional motors on each wheel that independently do steering and independently do steering and independently do steering and suspension. And the effect that it has, suspension. And the effect that it has, suspension. And the effect that it has, apparently, I haven't driven one, is apparently, I haven't driven one, is apparently, I haven't driven one, is that it takes a super heavy that it takes a super heavy that it takes a super heavy batterypowered car and it makes it feel batterypowered car and it makes it feel batterypowered car and it makes it feel really lightweight and balanced. really lightweight and balanced. really lightweight and balanced. >> And so there's all these almost like >> And so there's all these almost like >> And so there's all these almost like illusions that they can do with illusions that they can do with illusions that they can do with technology technology technology to make the car just different than to make the car just different than to make the car just different than every other electric car that you've every other electric car that you've every other electric car that you've driven. And for Ferrari being a company driven. And for Ferrari being a company driven. And for Ferrari being a company that stimulates emotion, that stimulates that stimulates emotion, that stimulates that stimulates emotion, that stimulates passion, that provides a unique passion, that provides a unique passion, that provides a unique experience, they may have figured out experience, they may have figured out experience, they may have figured out how to do that in an electric car. And how to do that in an electric car. And how to do that in an electric car. And we may look at all the other electric we may look at all the other electric we may look at all the other electric cars and say, "Yeah, they're fast, but cars and say, "Yeah, they're fast, but cars and say, "Yeah, they're fast, but gosh, they just don't they just don't gosh, they just don't they just don't gosh, they just don't they just don't feel the way that this car feels." And feel the way that this car feels." And feel the way that this car feels." And we'll have to see. we'll have to see. we'll have to see. >> Yep. Yep. All right. Well, while we wait >> Yep. Yep. All right. Well, while we wait >> Yep. Yep. All right. Well, while we wait here for the Luch to come out in 6 weeks here for the Luch to come out in 6 weeks here for the Luch to come out in 6 weeks or so, give us Ferrari by the numbers or so, give us Ferrari by the numbers or so, give us Ferrari by the numbers today. today. today. >> All right. So last year they delivered >> All right. So last year they delivered >> All right. So last year they delivered 13,640 13,640 13,640 cars. As we mentioned, 330,000 cars have cars. As we mentioned, 330,000 cars have cars. As we mentioned, 330,000 cars have ever been produced. Here's another way ever been produced. Here's another way ever been produced. Here's another way to frame that stat that is my favorite. to frame that stat that is my favorite. to frame that stat that is my favorite. This has been true all the way up until This has been true all the way up until This has been true all the way up until this year. This quote, Porsche delivers this year. This quote, Porsche delivers this year. This quote, Porsche delivers more cars each year than Ferrari has more cars each year than Ferrari has more cars each year than Ferrari has ever. ever. ever. So for all the hand ringing out there So for all the hand ringing out there So for all the hand ringing out there about increased production, etc., etc., about increased production, etc., etc., about increased production, etc., etc., Ferrari still is in a class of its own. Ferrari still is in a class of its own. Ferrari still is in a class of its own. >> Small batch. Last year, approximately >> Small batch. Last year, approximately >> Small batch. Last year, approximately 81% of new Ferraris were sold to 81% of new Ferraris were sold to 81% of new Ferraris were sold to existing clients and 48% were purchased existing clients and 48% were purchased existing clients and 48% were purchased by customers who already owned multiple by customers who already owned multiple by customers who already owned multiple Ferraris, Ferraris, Ferraris, >> adding to the collections. >> adding to the collections. >> adding to the collections. >> Yes, you should have the picture by now. >> Yes, you should have the picture by now. >> Yes, you should have the picture by now. Most Ferraris sit in garages because Most Ferraris sit in garages because Most Ferraris sit in garages because they sit among many other Ferraris and they sit among many other Ferraris and they sit among many other Ferraris and occasionally some are driven on occasionally some are driven on occasionally some are driven on racetracks. So largely, this is going to racetracks. So largely, this is going to racetracks. So largely, this is going to sound hilarious, but for a company that sound hilarious, but for a company that sound hilarious, but for a company that is all about the driving experience, is all about the driving experience, is all about the driving experience, Ferraris mostly are not driven. Ferraris mostly are not driven. Ferraris mostly are not driven. >> Yes. Yes. There's a deep irony here. >> Yes. Yes. There's a deep irony here. >> Yes. Yes. There's a deep irony here. >> I would bet they have the lowest hours >> I would bet they have the lowest hours >> I would bet they have the lowest hours of use per car of any manufacturer in of use per car of any manufacturer in of use per car of any manufacturer in the world who produces at least, I don't the world who produces at least, I don't the world who produces at least, I don't know, draw a hard cut off, 5,000 cars a know, draw a hard cut off, 5,000 cars a know, draw a hard cut off, 5,000 cars a year. year. year. >> Yep. >> Yep. >> Yep. >> Which makes for an interesting luxury >> Which makes for an interesting luxury >> Which makes for an interesting luxury good because there is zero way to subtly good because there is zero way to subtly good because there is zero way to subtly show off that you have a Ferrari. It's show off that you have a Ferrari. It's show off that you have a Ferrari. It's either silent because you have one in either silent because you have one in either silent because you have one in your garage and you're sitting there your garage and you're sitting there your garage and you're sitting there thinking, "How can I bring up that I thinking, "How can I bring up that I thinking, "How can I bring up that I have a Ferrari or if you show up in it, have a Ferrari or if you show up in it, have a Ferrari or if you show up in it, it is really loud. It is I have a it is really loud. It is I have a it is really loud. It is I have a Ferrari." There is no quiet luxury in Ferrari." There is no quiet luxury in Ferrari." There is no quiet luxury in the universe of Ferrari. I actually the universe of Ferrari. I actually the universe of Ferrari. I actually think there's more nuance to that than think there's more nuance to that than think there's more nuance to that than it would appear on the surface. Okay? it would appear on the surface. Okay? it would appear on the surface. Okay? >> And this is a good time to bring up a >> And this is a good time to bring up a >> And this is a good time to bring up a couple points. The first is couple points. The first is couple points. The first is car collector and Ferrari collector car collector and Ferrari collector car collector and Ferrari collector culture. By and large, at least with the culture. By and large, at least with the culture. By and large, at least with the current slash older generation, current slash older generation, current slash older generation, car guys are very different than like, car guys are very different than like, car guys are very different than like, you know, Hermes collectors or, you you know, Hermes collectors or, you you know, Hermes collectors or, you know, LV fans or something like there's know, LV fans or something like there's know, LV fans or something like there's a nerdiness. a nerdiness. a nerdiness. >> There's a real nerdiness and there's a >> There's a real nerdiness and there's a >> There's a real nerdiness and there's a real like community to it. Cars and real like community to it. Cars and real like community to it. Cars and coffee meetups are like a real thing and coffee meetups are like a real thing and coffee meetups are like a real thing and you just go to them and you connect with you just go to them and you connect with you just go to them and you connect with other people there and they accept other people there and they accept other people there and they accept anybody. It's a way for adult males to anybody. It's a way for adult males to anybody. It's a way for adult males to make friends. make friends. make friends. >> Yes. Yes. Yes. So, there sort of is this >> Yes. Yes. Yes. So, there sort of is this >> Yes. Yes. Yes. So, there sort of is this other way to show off your Ferraris as other way to show off your Ferraris as other way to show off your Ferraris as part of a community where you can part of a community where you can part of a community where you can celebrate and appreciate them together celebrate and appreciate them together celebrate and appreciate them together with the community. And it's very like with the community. And it's very like with the community. And it's very like opening and welcoming this this culture. opening and welcoming this this culture. opening and welcoming this this culture. If you're interested, even if you don't If you're interested, even if you don't If you're interested, even if you don't own any of these cars or have the means own any of these cars or have the means own any of these cars or have the means to, like it's okay. You're still welcome to, like it's okay. You're still welcome to, like it's okay. You're still welcome in this community. It is different like in this community. It is different like in this community. It is different like the watch world when someone says like, the watch world when someone says like, the watch world when someone says like, "Oh, what watch are you wearing?" "Oh, what watch are you wearing?" "Oh, what watch are you wearing?" There's a little bit more ick to it. There's a little bit more ick to it. There's a little bit more ick to it. Like I ask people all the time because Like I ask people all the time because Like I ask people all the time because after the Rolex episode, I'm just after the Rolex episode, I'm just after the Rolex episode, I'm just infinitely fascinated by what's on your infinitely fascinated by what's on your infinitely fascinated by what's on your wrist and I like hearing the stories and wrist and I like hearing the stories and wrist and I like hearing the stories and but if you're not careful, it can sound but if you're not careful, it can sound but if you're not careful, it can sound like how expensive is your watch and I like how expensive is your watch and I like how expensive is your watch and I car culture doesn't feel like that in car culture doesn't feel like that in car culture doesn't feel like that in the way that watch culture does or the way that watch culture does or the way that watch culture does or luxury handbags. luxury handbags. luxury handbags. >> It's paradoxical in that these are the >> It's paradoxical in that these are the >> It's paradoxical in that these are the most expensive luxury objects out there. most expensive luxury objects out there. most expensive luxury objects out there. like way way way more expensive than a like way way way more expensive than a like way way way more expensive than a watch and way rarer watch and way rarer watch and way rarer >> and way rarer >> and way rarer >> and way rarer >> and yet it's somehow sort of less >> and yet it's somehow sort of less >> and yet it's somehow sort of less exclusive at least in the community exclusive at least in the community exclusive at least in the community aspect of it. So that's sort of one aspect of it. So that's sort of one aspect of it. So that's sort of one point. The other point is that yes, point. The other point is that yes, point. The other point is that yes, Ferraris are loud and yes, Ferraris are Ferraris are loud and yes, Ferraris are Ferraris are loud and yes, Ferraris are designed to convey passion and an designed to convey passion and an designed to convey passion and an experience of being maximally alive and experience of being maximally alive and experience of being maximally alive and you know battling against death if you you know battling against death if you you know battling against death if you so choose. so choose. so choose. >> But they're not flashy or at least >> But they're not flashy or at least >> But they're not flashy or at least traditionally they weren't flashy in the traditionally they weren't flashy in the traditionally they weren't flashy in the same way as say a Lamborghini. If you same way as say a Lamborghini. If you same way as say a Lamborghini. If you want to be a crypto bro, you buy a want to be a crypto bro, you buy a want to be a crypto bro, you buy a Lamborghini. Lamborghini. Lamborghini. >> Yeah. Well, Lamborghinis are the most >> Yeah. Well, Lamborghinis are the most >> Yeah. Well, Lamborghinis are the most garish side of Ferrari minus the racing garish side of Ferrari minus the racing garish side of Ferrari minus the racing heritage. heritage. heritage. >> Yes. Yes, that's a good way to put it. >> Yes. Yes, that's a good way to put it. >> Yes. Yes, that's a good way to put it. Yeah. It's not like certainly plenty of Yeah. It's not like certainly plenty of Yeah. It's not like certainly plenty of Ferraris can be garish, but there is Ferraris can be garish, but there is Ferraris can be garish, but there is like both a legitimate history and like both a legitimate history and like both a legitimate history and culture that you're buying into, right? culture that you're buying into, right? culture that you're buying into, right? >> And many of the models are actually >> And many of the models are actually >> And many of the models are actually quite restraint at least in styling. quite restraint at least in styling. quite restraint at least in styling. >> Okay. Relatively. Yes. The last point on >> Okay. Relatively. Yes. The last point on >> Okay. Relatively. Yes. The last point on this is furry has taken price up a lot this is furry has taken price up a lot this is furry has taken price up a lot in recent years. And so if you were, you in recent years. And so if you were, you in recent years. And so if you were, you know, let's say you're a 70-year-old know, let's say you're a 70-year-old know, let's say you're a 70-year-old dude and you have a couple of old dude and you have a couple of old dude and you have a couple of old Ferraris that you collect and you like Ferraris that you collect and you like Ferraris that you collect and you like bringing to shows, they weren't that bringing to shows, they weren't that bringing to shows, they weren't that expensive expensive expensive >> until recently. I mean, they were always >> until recently. I mean, they were always >> until recently. I mean, they were always more expensive than other luxury cars. more expensive than other luxury cars. more expensive than other luxury cars. They were definitely ultra luxury cars, They were definitely ultra luxury cars, They were definitely ultra luxury cars, but if you just look at how much the but if you just look at how much the but if you just look at how much the price has gone up in recent years, and price has gone up in recent years, and price has gone up in recent years, and it stimulated the second market, too. it stimulated the second market, too. it stimulated the second market, too. So, I was talking to someone who bought So, I was talking to someone who bought So, I was talking to someone who bought a car in the mid '90s just from the sort a car in the mid '90s just from the sort a car in the mid '90s just from the sort of bottom of the range and he was of bottom of the range and he was of bottom of the range and he was lamenting the fact that he sold it 3 lamenting the fact that he sold it 3 lamenting the fact that he sold it 3 years ago, four years ago, and it's years ago, four years ago, and it's years ago, four years ago, and it's doubled in price since then. That sort doubled in price since then. That sort doubled in price since then. That sort of phenomena has happened all over the of phenomena has happened all over the of phenomena has happened all over the Ferrer universe, which adds to the mild Ferrer universe, which adds to the mild Ferrer universe, which adds to the mild ick of seeing one ick of seeing one ick of seeing one >> that I don't think you used to >> that I don't think you used to >> that I don't think you used to experience as much. experience as much. experience as much. >> Mhm. Yep. It's a great point. >> Mhm. Yep. It's a great point. >> Mhm. Yep. It's a great point. >> Okay, so back to the numbers. They did >> Okay, so back to the numbers. They did >> Okay, so back to the numbers. They did $8.2 billion in revenue in 2025. In $8.2 billion in revenue in 2025. In $8.2 billion in revenue in 2025. In terms of profits, they did 3.2 billion terms of profits, they did 3.2 billion terms of profits, they did 3.2 billion in IBDA. So, they've got a 38.8% in IBDA. So, they've got a 38.8% in IBDA. So, they've got a 38.8% EBIDA margin. Pretty good business. EBIDA margin. Pretty good business. EBIDA margin. Pretty good business. >> Pretty good for a car company. >> Pretty good for a car company. >> Pretty good for a car company. >> It's not a car company. That is the >> It's not a car company. That is the >> It's not a car company. That is the answer here. answer here. answer here. >> Of course. >> Of course. >> Of course. >> So, how are they so profitable? This is >> So, how are they so profitable? This is >> So, how are they so profitable? This is the exact comparison I was going to. the exact comparison I was going to. the exact comparison I was going to. Well, let's look at their cost to make Well, let's look at their cost to make Well, let's look at their cost to make each car versus how much they can sell each car versus how much they can sell each car versus how much they can sell each car for. And we'll start by looking each car for. And we'll start by looking each car for. And we'll start by looking at other car companies to kind of get a at other car companies to kind of get a at other car companies to kind of get a sense of what their gross margins are. sense of what their gross margins are. sense of what their gross margins are. Ford 7%. Ford 7%. Ford 7%. >> That is 7% gross margin. Not IBIDA, not >> That is 7% gross margin. Not IBIDA, not >> That is 7% gross margin. Not IBIDA, not net income, not cash flow margin. That net income, not cash flow margin. That net income, not cash flow margin. That is their is their is their >> gross margin when they create one unit >> gross margin when they create one unit >> gross margin when they create one unit of a car. of a car. of a car. >> A new F-150, you know, etc., etc. >> A new F-150, you know, etc., etc. >> A new F-150, you know, etc., etc. >> Yeah. They make 7% before having to pay >> Yeah. They make 7% before having to pay >> Yeah. They make 7% before having to pay their overhead and their R&D and their their overhead and their R&D and their their overhead and their R&D and their GNA and GNA and GNA and >> any of their fixed cost. >> any of their fixed cost. >> any of their fixed cost. >> Yeah. GM 10%. >> Yeah. GM 10%. >> Yeah. GM 10%. BMW BMW BMW 14%. 14%. 14%. >> Wow. >> Wow. >> Wow. >> Volkswagen 14%. MercedesBenz 16 to 22%. >> Volkswagen 14%. MercedesBenz 16 to 22%. >> Volkswagen 14%. MercedesBenz 16 to 22%. Porsche. Porsche. Porsche. Freaking Porsche 15 to 25%. Freaking Porsche 15 to 25%. Freaking Porsche 15 to 25%. Toyota that same kind of range 18 to Toyota that same kind of range 18 to Toyota that same kind of range 18 to 21%. Toyota is exceptionally well-run. 21%. Toyota is exceptionally well-run. 21%. Toyota is exceptionally well-run. Isn't that amazing that Toyota generates Isn't that amazing that Toyota generates Isn't that amazing that Toyota generates on the order of three times as much on the order of three times as much on the order of three times as much gross margin per car that rolls off the gross margin per car that rolls off the gross margin per car that rolls off the line compared to Ford? line compared to Ford? line compared to Ford? >> Yeah, that is incredible. >> Yeah, that is incredible. >> Yeah, that is incredible. >> Ferrari is 50% gross margins. That is a >> Ferrari is 50% gross margins. That is a >> Ferrari is 50% gross margins. That is a luxury brand. luxury brand. luxury brand. >> And as you were pointing out earlier, >> And as you were pointing out earlier, >> And as you were pointing out earlier, that's average. that's average. that's average. >> Yes, >> Yes, >> Yes, >> the supercars and the Icona cars are way >> the supercars and the Icona cars are way >> the supercars and the Icona cars are way above 50% gross margins. I get the sense above 50% gross margins. I get the sense above 50% gross margins. I get the sense the range is like 30ish% maybe 35% and the range is like 30ish% maybe 35% and the range is like 30ish% maybe 35% and then the supercars are in the 80 to 90% then the supercars are in the 80 to 90% then the supercars are in the 80 to 90% gross margin range. gross margin range. gross margin range. >> So it is worth pointing out here this >> So it is worth pointing out here this >> So it is worth pointing out here this average 50% gross margin you might say average 50% gross margin you might say average 50% gross margin you might say oh it's a luxury brand which is the oh it's a luxury brand which is the oh it's a luxury brand which is the assertion I'm making. They do have to assertion I'm making. They do have to assertion I'm making. They do have to make a bunch of complex expensive giant make a bunch of complex expensive giant make a bunch of complex expensive giant hunks of metal and safety and engineer hunks of metal and safety and engineer hunks of metal and safety and engineer the absolute crap out of them and truly the absolute crap out of them and truly the absolute crap out of them and truly innovate. So when you look at companies innovate. So when you look at companies innovate. So when you look at companies that don't have to do that, LVMH is 66% that don't have to do that, LVMH is 66% that don't have to do that, LVMH is 66% and Hermes is 71%. So I mean there and Hermes is 71%. So I mean there and Hermes is 71%. So I mean there exists a category when you don't have to exists a category when you don't have to exists a category when you don't have to do all of that hard engineering work do all of that hard engineering work do all of that hard engineering work where you know it's a it's a good where you know it's a it's a good where you know it's a it's a good business just selling handbags. business just selling handbags. business just selling handbags. >> Yep. Yep. And this is where the >> Yep. Yep. And this is where the >> Yep. Yep. And this is where the technology element of Ferrari comes in technology element of Ferrari comes in technology element of Ferrari comes in that doesn't apply to many of the other that doesn't apply to many of the other that doesn't apply to many of the other luxury companies. luxury companies. luxury companies. >> Yep. But still, Ferrari is able to sell >> Yep. But still, Ferrari is able to sell >> Yep. But still, Ferrari is able to sell their cars for twice what it costs them their cars for twice what it costs them their cars for twice what it costs them to make. Whereas, if BMW spent a hundred to make. Whereas, if BMW spent a hundred to make. Whereas, if BMW spent a hundred bucks to make a car, they only get to bucks to make a car, they only get to bucks to make a car, they only get to sell it for $115. So, perhaps more sell it for $115. So, perhaps more sell it for $115. So, perhaps more interesting though than all of this than interesting though than all of this than interesting though than all of this than the gross profit percent is the gross the gross profit percent is the gross the gross profit percent is the gross profit absolute dollars. The profit per profit absolute dollars. The profit per profit absolute dollars. The profit per car average exceeded $170,000. That is more than the entire retail That is more than the entire retail price of your average luxury sedan. And price of your average luxury sedan. And price of your average luxury sedan. And even Porsche would need to sell six cars even Porsche would need to sell six cars even Porsche would need to sell six cars to equal the profit dollars that come to equal the profit dollars that come to equal the profit dollars that come from a single average Ferrari. Wow. That from a single average Ferrari. Wow. That from a single average Ferrari. Wow. That is truly astonishing. is truly astonishing. is truly astonishing. >> There's so many different ways to slice >> There's so many different ways to slice >> There's so many different ways to slice this. It's fun. this. It's fun. this. It's fun. >> God. I mean, what other company or >> God. I mean, what other company or >> God. I mean, what other company or products can you think of that has a per products can you think of that has a per products can you think of that has a per unit gross margin contribution of unit gross margin contribution of unit gross margin contribution of $170,000? $170,000? $170,000? >> Well, this gets into how we open the >> Well, this gets into how we open the >> Well, this gets into how we open the episode that in terms of how people episode that in terms of how people episode that in terms of how people spend money in life, it's housing, food, spend money in life, it's housing, food, spend money in life, it's housing, food, and transportation. And if you are and transportation. And if you are and transportation. And if you are selling them something in the selling them something in the selling them something in the transportation category, like one of transportation category, like one of transportation category, like one of their largest possible spends, and their largest possible spends, and their largest possible spends, and you're selling them the most expensive you're selling them the most expensive you're selling them the most expensive version of it, you've sort of spiked. version of it, you've sort of spiked. version of it, you've sort of spiked. Like you you kind of have to it's like Like you you kind of have to it's like Like you you kind of have to it's like real estate is the only other thing you real estate is the only other thing you real estate is the only other thing you could really meaningfully start to could really meaningfully start to could really meaningfully start to compare this to. compare this to. compare this to. >> Yep. >> Yep. >> Yep. >> All right. A little segment breakdown >> All right. A little segment breakdown >> All right. A little segment breakdown time. They've got three segments that time. They've got three segments that time. They've got three segments that they report. There's cars and spare they report. There's cars and spare they report. There's cars and spare parts. That's 84% of their revenue. 11 parts. That's 84% of their revenue. 11 parts. That's 84% of their revenue. 11 12% though is sponsorship, commercial, 12% though is sponsorship, commercial, 12% though is sponsorship, commercial, and brand. and brand. and brand. >> The Formula 1 team. >> The Formula 1 team. >> The Formula 1 team. >> Yeah, I was going to say the the >> Yeah, I was going to say the the >> Yeah, I was going to say the the commercial and brand. This is sort of commercial and brand. This is sort of commercial and brand. This is sort of where their their lifestyle stuff is, where their their lifestyle stuff is, where their their lifestyle stuff is, the the fashion. But really the the the fashion. But really the the the fashion. But really the interesting bit here is sponsorship. interesting bit here is sponsorship. interesting bit here is sponsorship. Formula 1 for them is a profit Formula 1 for them is a profit Formula 1 for them is a profit generating center that is also the generating center that is also the generating center that is also the single best marketing dollars they could single best marketing dollars they could single best marketing dollars they could ever spend. ever spend. ever spend. >> Yes. Thank you Liberty Media and their >> Yes. Thank you Liberty Media and their >> Yes. Thank you Liberty Media and their stewardship of Formula 1. Like overnight stewardship of Formula 1. Like overnight stewardship of Formula 1. Like overnight in the last 10 years, Formula 1 went in the last 10 years, Formula 1 went in the last 10 years, Formula 1 went from just a marketing spend for Ferrari from just a marketing spend for Ferrari from just a marketing spend for Ferrari to the best marketing activity they do to the best marketing activity they do to the best marketing activity they do and a real meaningful profit center. and a real meaningful profit center. and a real meaningful profit center. >> Yep. I mean, the HP deal alone, the >> Yep. I mean, the HP deal alone, the >> Yep. I mean, the HP deal alone, the title sponsor of the team is rumored to title sponsor of the team is rumored to title sponsor of the team is rumored to be a hund00 million a year. be a hund00 million a year. be a hund00 million a year. >> And the latest Forbes valuations of F1 >> And the latest Forbes valuations of F1 >> And the latest Forbes valuations of F1 teams, I think Ferrari, they have the teams, I think Ferrari, they have the teams, I think Ferrari, they have the value of the team at 6.5 billion. Is value of the team at 6.5 billion. Is value of the team at 6.5 billion. Is that right? that right? that right? >> Sounds right. >> Sounds right. >> Sounds right. >> Yeah, >> Yeah, >> Yeah, >> sounds right. Yeah. They don't produce >> sounds right. Yeah. They don't produce >> sounds right. Yeah. They don't produce the most profit, but they are the most the most profit, but they are the most the most profit, but they are the most valuable team because they're Ferrari valuable team because they're Ferrari valuable team because they're Ferrari and everyone pays a little extra premium and everyone pays a little extra premium and everyone pays a little extra premium for Ferrari and everything, for Ferrari and everything, for Ferrari and everything, >> right? So, you know, of the current >> right? So, you know, of the current >> right? So, you know, of the current market cap, that's what, probably close market cap, that's what, probably close market cap, that's what, probably close to 10% of the current market cap is just to 10% of the current market cap is just to 10% of the current market cap is just the value of the team. the value of the team. the value of the team. >> Oh, that's crazy. You're right. >> Oh, that's crazy. You're right. >> Oh, that's crazy. You're right. >> Yep. And again, you can't really >> Yep. And again, you can't really >> Yep. And again, you can't really extricate one from the other. extricate one from the other. extricate one from the other. >> No, these are one thing. >> No, these are one thing. >> No, these are one thing. >> Ferrari is Formula 1. Formula 1 is >> Ferrari is Formula 1. Formula 1 is >> Ferrari is Formula 1. Formula 1 is Ferrari, but it's now a meaningful value Ferrari, but it's now a meaningful value Ferrari, but it's now a meaningful value and profit driver. and profit driver. and profit driver. >> Yep. Then lastly, 4 and a half% of their >> Yep. Then lastly, 4 and a half% of their >> Yep. Then lastly, 4 and a half% of their revenue is financial services and some revenue is financial services and some revenue is financial services and some other random stuff, including selling other random stuff, including selling other random stuff, including selling engines to other Formula 1 teams. So, engines to other Formula 1 teams. So, engines to other Formula 1 teams. So, this is the money that the Cadillac team this is the money that the Cadillac team this is the money that the Cadillac team is paying to Ferrari to put an engine in is paying to Ferrari to put an engine in is paying to Ferrari to put an engine in their car. their car. their car. >> Yep. >> Yep. >> Yep. >> All right. multiples. For anyone who is >> All right. multiples. For anyone who is >> All right. multiples. For anyone who is not an investor, this is when you look not an investor, this is when you look not an investor, this is when you look at the current business, how many years at the current business, how many years at the current business, how many years of the current business would you have of the current business would you have of the current business would you have to pay them to buy the whole company to pay them to buy the whole company to pay them to buy the whole company from them? And there's a bunch of from them? And there's a bunch of from them? And there's a bunch of different ways to slice it. We're going different ways to slice it. We're going different ways to slice it. We're going to look at the price toearnings ratio or to look at the price toearnings ratio or to look at the price toearnings ratio or PE. Ferrari trades at about 35 times PE. Ferrari trades at about 35 times PE. Ferrari trades at about 35 times their earnings. And until the luxury their earnings. And until the luxury their earnings. And until the luxury slump where LVMH and Hermes and all slump where LVMH and Hermes and all slump where LVMH and Hermes and all these other companies got hit too in the these other companies got hit too in the these other companies got hit too in the last couple years, it was trading around last couple years, it was trading around last couple years, it was trading around 50x for their last few years. 50x for their last few years. 50x for their last few years. >> Now for reference, most automakers trade >> Now for reference, most automakers trade >> Now for reference, most automakers trade at 8 to 10x and Hermes trades at 35 to at 8 to 10x and Hermes trades at 35 to at 8 to 10x and Hermes trades at 35 to 60x again big swing the last few years 60x again big swing the last few years 60x again big swing the last few years and LVMH sort of around 25x. So and LVMH sort of around 25x. So and LVMH sort of around 25x. So essentially the market agrees with essentially the market agrees with essentially the market agrees with management that this is a luxury management that this is a luxury management that this is a luxury company, not a car company. and one of company, not a car company. and one of company, not a car company. and one of the very very best luxury companies. Not the very very best luxury companies. Not the very very best luxury companies. Not just a luxury company, but an apex just a luxury company, but an apex just a luxury company, but an apex luxury company like valued on a multiple luxury company like valued on a multiple luxury company like valued on a multiple on par with the two very best luxury on par with the two very best luxury on par with the two very best luxury brands in the entire world. brands in the entire world. brands in the entire world. >> Yes. The implication here with a very >> Yes. The implication here with a very >> Yes. The implication here with a very high price to earnings multiple is that high price to earnings multiple is that high price to earnings multiple is that investors believe that the profit investors believe that the profit investors believe that the profit streams are a lot more durable and streams are a lot more durable and streams are a lot more durable and certain compared to traditional certain compared to traditional certain compared to traditional automakers. Effectively, there's a high automakers. Effectively, there's a high automakers. Effectively, there's a high degree of certainty that all these degree of certainty that all these degree of certainty that all these profits will continue. The only other profits will continue. The only other profits will continue. The only other option when you're looking at why is a option when you're looking at why is a option when you're looking at why is a PE ratio so high is if you expect it's PE ratio so high is if you expect it's PE ratio so high is if you expect it's going to grow, going to grow, going to grow, >> right? But that is super duper not what >> right? But that is super duper not what >> right? But that is super duper not what is happening here. I mean, that's like is happening here. I mean, that's like is happening here. I mean, that's like when you would have a high PE multiple when you would have a high PE multiple when you would have a high PE multiple for a startup that's growing 300% for a startup that's growing 300% for a startup that's growing 300% year-over-year. Revenue growth is year-over-year. Revenue growth is year-over-year. Revenue growth is actually experiencing a massive slowdown actually experiencing a massive slowdown actually experiencing a massive slowdown at Ferrari. If there's a bare case at at Ferrari. If there's a bare case at at Ferrari. If there's a bare case at all for Ferrari investors, which you all for Ferrari investors, which you all for Ferrari investors, which you know, we've quite painted quite the know, we've quite painted quite the know, we've quite painted quite the bullcase this whole episode, it's that bullcase this whole episode, it's that bullcase this whole episode, it's that Ferrari has reached the edge of their Ferrari has reached the edge of their Ferrari has reached the edge of their extreme pricing power and their ability extreme pricing power and their ability extreme pricing power and their ability to sort of keep ratcheting that up at to sort of keep ratcheting that up at to sort of keep ratcheting that up at the number of units that they're the number of units that they're the number of units that they're selling. Management said in their selling. Management said in their selling. Management said in their October 2025 investor day that the era October 2025 investor day that the era October 2025 investor day that the era of double-digit revenue growth is over of double-digit revenue growth is over of double-digit revenue growth is over and over the next five years, they and over the next five years, they and over the next five years, they expect revenue to grow just 5% each expect revenue to grow just 5% each expect revenue to grow just 5% each year. year. year. >> Yep. which actually for the long term is >> Yep. which actually for the long term is >> Yep. which actually for the long term is probably healthy for the company and the probably healthy for the company and the probably healthy for the company and the brand. Like they've expanded the pyramid brand. Like they've expanded the pyramid brand. Like they've expanded the pyramid so much in recent years that a period of so much in recent years that a period of so much in recent years that a period of slower growth probably is the right slower growth probably is the right slower growth probably is the right thing to do in terms of luxury strategy thing to do in terms of luxury strategy thing to do in terms of luxury strategy management here. But yeah, the stock management here. But yeah, the stock management here. But yeah, the stock really took a hit after that investor really took a hit after that investor really took a hit after that investor day last fall. It's funny, it took a hit day last fall. It's funny, it took a hit day last fall. It's funny, it took a hit and people still think Ferrari's and people still think Ferrari's and people still think Ferrari's current revenue streams are so durable current revenue streams are so durable current revenue streams are so durable that they're willing to pay the next 35 that they're willing to pay the next 35 that they're willing to pay the next 35 years worth of profits to buy the years worth of profits to buy the years worth of profits to buy the business today. And that is after business today. And that is after business today. And that is after getting crushed. I mean, the market cap getting crushed. I mean, the market cap getting crushed. I mean, the market cap went from 90 billion to 55 billion and went from 90 billion to 55 billion and went from 90 billion to 55 billion and investors probably got a little bit investors probably got a little bit investors probably got a little bit excited about that 11% and 17% growth excited about that 11% and 17% growth excited about that 11% and 17% growth rates and now they're hearing 5%. That's rates and now they're hearing 5%. That's rates and now they're hearing 5%. That's sort of why you're seeing this sort of why you're seeing this sort of why you're seeing this contraction, but a contraction to 35x contraction, but a contraction to 35x contraction, but a contraction to 35x price to earnings. price to earnings. price to earnings. >> Yep. Well, one more thing before we get >> Yep. Well, one more thing before we get >> Yep. Well, one more thing before we get to analysis and powers and quintessence. to analysis and powers and quintessence. to analysis and powers and quintessence. China. China. China. >> Yes. >> Yes. >> Yes. >> You mentioned it earlier, but uh what's >> You mentioned it earlier, but uh what's >> You mentioned it earlier, but uh what's going on for Ferrari in China? going on for Ferrari in China? going on for Ferrari in China? >> So, what's going on in the auto industry >> So, what's going on in the auto industry >> So, what's going on in the auto industry in China? It's probably the place to in China? It's probably the place to in China? It's probably the place to start. China's car market is being start. China's car market is being start. China's car market is being completely upended by inexpensive completely upended by inexpensive completely upended by inexpensive highquality electric cars highquality electric cars highquality electric cars >> domestic EVs. >> domestic EVs. >> domestic EVs. >> Yes. Domestically from BYD, Xiaomi and >> Yes. Domestically from BYD, Xiaomi and >> Yes. Domestically from BYD, Xiaomi and others. This is having a huge impact on others. This is having a huge impact on others. This is having a huge impact on brands that expanded into China in the brands that expanded into China in the brands that expanded into China in the last decade like we talked a lot about last decade like we talked a lot about last decade like we talked a lot about on our our Porsche episode. But China is on our our Porsche episode. But China is on our our Porsche episode. But China is only 7% of Ferrari's sales, down from only 7% of Ferrari's sales, down from only 7% of Ferrari's sales, down from 10% at its peak. Now Porsche on the 10% at its peak. Now Porsche on the 10% at its peak. Now Porsche on the other hand, China was 33% of their other hand, China was 33% of their other hand, China was 33% of their deliveries a few years ago, which has deliveries a few years ago, which has deliveries a few years ago, which has collapsed all the way to 15% and collapsed all the way to 15% and collapsed all the way to 15% and continues to fall. continues to fall. continues to fall. So the question then is, is Ferrari any So the question then is, is Ferrari any So the question then is, is Ferrari any less desirable today in China than it less desirable today in China than it less desirable today in China than it was 5 years ago? And does it fill a was 5 years ago? And does it fill a was 5 years ago? And does it fill a different enough job to be done than the different enough job to be done than the different enough job to be done than the domestic supercars for them to sort of domestic supercars for them to sort of domestic supercars for them to sort of weather that storm? weather that storm? weather that storm? >> Interesting. I don't know enough to say, >> Interesting. I don't know enough to say, >> Interesting. I don't know enough to say, but I would suspect but I would suspect but I would suspect it's probably about as healthy as you it's probably about as healthy as you it's probably about as healthy as you can be. can be. can be. >> Yeah, I think my answers on this are >> Yeah, I think my answers on this are >> Yeah, I think my answers on this are there are domestic supercars in China. there are domestic supercars in China. there are domestic supercars in China. They're still not Ferrari level in terms They're still not Ferrari level in terms They're still not Ferrari level in terms of desiraability. Certainly not brand of desiraability. Certainly not brand of desiraability. Certainly not brand heritage. heritage. heritage. >> Yeah, they don't have the myth. >> Yeah, they don't have the myth. >> Yeah, they don't have the myth. >> Unless there's a sentiment change where >> Unless there's a sentiment change where >> Unless there's a sentiment change where people in China only want to buy people in China only want to buy people in China only want to buy domestic supercars. I mean, that's sort domestic supercars. I mean, that's sort domestic supercars. I mean, that's sort of a risk to them. But I think the thing of a risk to them. But I think the thing of a risk to them. But I think the thing that you're buying, the signal you're that you're buying, the signal you're that you're buying, the signal you're trying to send when you buy a Ferrari is trying to send when you buy a Ferrari is trying to send when you buy a Ferrari is not really at risk. The job to be done not really at risk. The job to be done not really at risk. The job to be done by an EV, I kind of keep coming back to by an EV, I kind of keep coming back to by an EV, I kind of keep coming back to this is completely different than the this is completely different than the this is completely different than the job to be done by owning a Ferrari. job to be done by owning a Ferrari. job to be done by owning a Ferrari. >> Y that's it. I'm I'm glad we brought >> Y that's it. I'm I'm glad we brought >> Y that's it. I'm I'm glad we brought this up again here because I think this this up again here because I think this this up again here because I think this also is an important point of also is an important point of also is an important point of perspective to add to the luch and why I perspective to add to the luch and why I perspective to add to the luch and why I really think it is kind of bold and really think it is kind of bold and really think it is kind of bold and daring and important that they're doing daring and important that they're doing daring and important that they're doing it. It's easy for us sitting here in the it. It's easy for us sitting here in the it. It's easy for us sitting here in the US to have a perspective of like h why US to have a perspective of like h why US to have a perspective of like h why are they continuing this EV thing? are they continuing this EV thing? are they continuing this EV thing? Clearly, they should just stay with Clearly, they should just stay with Clearly, they should just stay with combustion engines. combustion engines. combustion engines. >> I'm not. It's the only one I want to >> I'm not. It's the only one I want to >> I'm not. It's the only one I want to buy. buy. buy. >> Well, yes, a good point. Okay. Easy for >> Well, yes, a good point. Okay. Easy for >> Well, yes, a good point. Okay. Easy for US-based uh collectors to and petrol US-based uh collectors to and petrol US-based uh collectors to and petrol heads to, you know, maybe be upset about heads to, you know, maybe be upset about heads to, you know, maybe be upset about this and not understand it. If you look, this and not understand it. If you look, this and not understand it. If you look, you know, certainly at China, but also you know, certainly at China, but also you know, certainly at China, but also in Europe where Chinese EVs are, you in Europe where Chinese EVs are, you in Europe where Chinese EVs are, you know, invading everywhere. In America, know, invading everywhere. In America, know, invading everywhere. In America, EVs are in a bit of a slump, but in much EVs are in a bit of a slump, but in much EVs are in a bit of a slump, but in much of the rest of the world, Chinese EVs of the rest of the world, Chinese EVs of the rest of the world, Chinese EVs are dominating y and like clearly are dominating y and like clearly are dominating y and like clearly showing what the future should be. So, showing what the future should be. So, showing what the future should be. So, is Ferrari going to say, "Yeah, we're is Ferrari going to say, "Yeah, we're is Ferrari going to say, "Yeah, we're just going to abdicate all of that and just going to abdicate all of that and just going to abdicate all of that and let the next supercar brands be built let the next supercar brands be built let the next supercar brands be built around EVs and probably be built in around EVs and probably be built in around EVs and probably be built in China." or are they gonna step up and China." or are they gonna step up and China." or are they gonna step up and take their own swing? take their own swing? take their own swing? >> Yeah, it's a swing. All right, should we >> Yeah, it's a swing. All right, should we >> Yeah, it's a swing. All right, should we move into analysis? move into analysis? move into analysis? >> Yes. And let's start with our >> Yes. And let's start with our >> Yes. And let's start with our traditional segment, seven powers. traditional segment, seven powers. traditional segment, seven powers. >> Yes. >> Yes. >> Yes. >> Borrowed from Hamilton Helmer's great >> Borrowed from Hamilton Helmer's great >> Borrowed from Hamilton Helmer's great book and framework of what power does a book and framework of what power does a book and framework of what power does a company have? What are the things that company have? What are the things that company have? What are the things that give it a durable, sustainable, give it a durable, sustainable, give it a durable, sustainable, comparative profit advantage over its comparative profit advantage over its comparative profit advantage over its nearest competitors? And the seven nearest competitors? And the seven nearest competitors? And the seven powers are scale economies, network powers are scale economies, network powers are scale economies, network economies, counterpositioning, switching economies, counterpositioning, switching economies, counterpositioning, switching cost, branding, quartered resource, and cost, branding, quartered resource, and cost, branding, quartered resource, and process power. process power. process power. >> Yes. >> Yes. >> Yes. >> What you got for Ferrari? >> What you got for Ferrari? >> What you got for Ferrari? >> All right. Well, should we just start >> All right. Well, should we just start >> All right. Well, should we just start with brand? with brand? with brand? >> Well, it's funny. Okay, I'm glad you >> Well, it's funny. Okay, I'm glad you >> Well, it's funny. Okay, I'm glad you started there because I think it's started there because I think it's started there because I think it's actually an interesting discussion. Go actually an interesting discussion. Go actually an interesting discussion. Go for it. for it. for it. >> How much would you pay for a Ferrari >> How much would you pay for a Ferrari >> How much would you pay for a Ferrari that was badged as a Ford? Uh, well, there's probably a pretty good Uh, well, there's probably a pretty good data point on this, which is the Ford data point on this, which is the Ford data point on this, which is the Ford GT. GT. GT. >> Yes. >> Yes. >> Yes. >> And I don't know what they sold it for, >> And I don't know what they sold it for, >> And I don't know what they sold it for, MSRP, but I suspect it was less than a MSRP, but I suspect it was less than a MSRP, but I suspect it was less than a Ferrari. Ferrari. Ferrari. >> Yeah. I mean, this is so hard because a >> Yeah. I mean, this is so hard because a >> Yeah. I mean, this is so hard because a Roma is not that much more expensive as Roma is not that much more expensive as Roma is not that much more expensive as the highestend Corvette that you could the highestend Corvette that you could the highestend Corvette that you could buy, buy, buy, >> but an F80 is $5 million. And there are >> but an F80 is $5 million. And there are >> but an F80 is $5 million. And there are not cars from normal car companies that not cars from normal car companies that not cars from normal car companies that anywhere near approach that. So the the anywhere near approach that. So the the anywhere near approach that. So the the question is kind of who is their direct question is kind of who is their direct question is kind of who is their direct competitor? Their direct competitor competitor? Their direct competitor competitor? Their direct competitor is probably Lamborghini. is probably Lamborghini. is probably Lamborghini. >> Yeah, that's that's the closest. Yeah. >> Yeah, that's that's the closest. Yeah. >> Yeah, that's that's the closest. Yeah. >> If you really want to go as apples to >> If you really want to go as apples to >> If you really want to go as apples to apples as possible. apples as possible. apples as possible. >> Yep. >> Yep. >> Yep. >> So Lamborghini, as we mentioned, makes >> So Lamborghini, as we mentioned, makes >> So Lamborghini, as we mentioned, makes about 11,000 cars a year compared to about 11,000 cars a year compared to about 11,000 cars a year compared to Ferrari's 14,000. Ferrari's 14,000. Ferrari's 14,000. Lamborghini has meaningfully increased Lamborghini has meaningfully increased Lamborghini has meaningfully increased volume. If you look back at the Ferrari volume. If you look back at the Ferrari volume. If you look back at the Ferrari IPO year, back then, the average selling IPO year, back then, the average selling IPO year, back then, the average selling price was about even. It was about price was about even. It was about price was about even. It was about $300,000, $300,000, $300,000, whether you're buying a Lamborghini or a whether you're buying a Lamborghini or a whether you're buying a Lamborghini or a Ferrari. Today, Ferrari's average Ferrari. Today, Ferrari's average Ferrari. Today, Ferrari's average selling price, as we mentioned, is selling price, as we mentioned, is selling price, as we mentioned, is 500,000, whereas Lamborghini is about 500,000, whereas Lamborghini is about 500,000, whereas Lamborghini is about 340,000. 340,000. 340,000. Mhm. Mhm. Mhm. >> So Ferrari has really flexed their sort >> So Ferrari has really flexed their sort >> So Ferrari has really flexed their sort of pricing power over Lamborghini, of pricing power over Lamborghini, of pricing power over Lamborghini, especially as Lamborghini has made more especially as Lamborghini has made more especially as Lamborghini has made more and more and more to kind of catch up to and more and more to kind of catch up to and more and more to kind of catch up to their volume. their volume. their volume. >> And 60% of Lamborghinis are Uruses SUVs. >> And 60% of Lamborghinis are Uruses SUVs. >> And 60% of Lamborghinis are Uruses SUVs. >> Yes, there's that, too. But the point >> Yes, there's that, too. But the point >> Yes, there's that, too. But the point that is useful for our powers exercise that is useful for our powers exercise that is useful for our powers exercise here is how much more would you pay for here is how much more would you pay for here is how much more would you pay for a Ferrari than a Lamborghini? a Ferrari than a Lamborghini? a Ferrari than a Lamborghini? >> Well, it's right there in the data, >> Well, it's right there in the data, >> Well, it's right there in the data, >> right? It's about a third more. >> right? It's about a third more. >> right? It's about a third more. >> Yep. I was going to take the >> Yep. I was going to take the >> Yep. I was going to take the counterpoint. On the one hand, yeah, counterpoint. On the one hand, yeah, counterpoint. On the one hand, yeah, brand is of course the strongest power brand is of course the strongest power brand is of course the strongest power that Ferrari has as with any luxury that Ferrari has as with any luxury that Ferrari has as with any luxury company. On the other hand, company. On the other hand, company. On the other hand, I think it's not quite as powerful in I think it's not quite as powerful in I think it's not quite as powerful in terms of driving profit margins for terms of driving profit margins for terms of driving profit margins for Ferrari as it is for say a LVMH or an Ferrari as it is for say a LVMH or an Ferrari as it is for say a LVMH or an Hermes. Yeah. Hermes. Yeah. Hermes. Yeah. >> Because >> Because >> Because >> a Ferrari product, a Ferrari car >> a Ferrari product, a Ferrari car >> a Ferrari product, a Ferrari car >> is really differentiated. >> is really differentiated. >> is really differentiated. >> Still has to be a Ferrari. >> Still has to be a Ferrari. >> Still has to be a Ferrari. >> Yes. Ferrari can't just stamp the >> Yes. Ferrari can't just stamp the >> Yes. Ferrari can't just stamp the prancing horse on a car and call it a prancing horse on a car and call it a prancing horse on a car and call it a Ferrari. A Ferrari has to elicit emotion Ferrari. A Ferrari has to elicit emotion Ferrari. A Ferrari has to elicit emotion from you. Yes. from you. Yes. from you. Yes. >> And it has to be cutting edge and it has >> And it has to be cutting edge and it has >> And it has to be cutting edge and it has to be incredibly powerful. So it's sort to be incredibly powerful. So it's sort to be incredibly powerful. So it's sort of like there's more cost that has to go of like there's more cost that has to go of like there's more cost that has to go into it. into it. into it. >> Yes. There's a phrase they use called >> Yes. There's a phrase they use called >> Yes. There's a phrase they use called racing thrills and it's engineered over racing thrills and it's engineered over racing thrills and it's engineered over decades to provide a very specific decades to provide a very specific decades to provide a very specific racing thrill when you drive it which is racing thrill when you drive it which is racing thrill when you drive it which is not something that you can throw another not something that you can throw another not something that you can throw another badge on. So I think if you were asking badge on. So I think if you were asking badge on. So I think if you were asking management, they would insist this is a management, they would insist this is a management, they would insist this is a fruitless discussion because there is no fruitless discussion because there is no fruitless discussion because there is no way to rebadge something and call it a way to rebadge something and call it a way to rebadge something and call it a Ferrari. That's not it. It's Ferrari. That's not it. It's Ferrari. That's not it. It's intellectually impossible. intellectually impossible. intellectually impossible. >> It's total logical a Ferrari is a >> It's total logical a Ferrari is a >> It's total logical a Ferrari is a Ferrari. Ferrari. Ferrari. >> Yes. Yes. But in reality, when they >> Yes. Yes. But in reality, when they >> Yes. Yes. But in reality, when they raise prices, people are willing to pay raise prices, people are willing to pay raise prices, people are willing to pay those higher prices because there is a those higher prices because there is a those higher prices because there is a shared myth that we all have, a belief shared myth that we all have, a belief shared myth that we all have, a belief in what the brand represents and means in what the brand represents and means in what the brand represents and means to us and the emotions that it gives us to us and the emotions that it gives us to us and the emotions that it gives us by owning and driving it that are are by owning and driving it that are are by owning and driving it that are are quantifiable and worth something. quantifiable and worth something. quantifiable and worth something. >> Yep. Yep. How does this compare to how >> Yep. Yep. How does this compare to how >> Yep. Yep. How does this compare to how you felt about watches at the end of the you felt about watches at the end of the you felt about watches at the end of the Rolex episode? Rolex episode? Rolex episode? >> Um, watches don't provide racing >> Um, watches don't provide racing >> Um, watches don't provide racing emotions. emotions. emotions. >> So, what matters because all the >> So, what matters because all the >> So, what matters because all the performance is effectively identical at performance is effectively identical at performance is effectively identical at the high end. What matters is who you the high end. What matters is who you the high end. What matters is who you are saying that you are to the world are saying that you are to the world are saying that you are to the world when you look down at your wrist. when you look down at your wrist. when you look down at your wrist. >> Yes. >> Yes. >> Yes. >> And when someone else sees your wrist. >> And when someone else sees your wrist. >> And when someone else sees your wrist. >> A watch says something about you, but it >> A watch says something about you, but it >> A watch says something about you, but it doesn't provide an experience for you. doesn't provide an experience for you. doesn't provide an experience for you. >> That's correct. And there's this like >> That's correct. And there's this like >> That's correct. And there's this like interesting perfect comparison here. interesting perfect comparison here. interesting perfect comparison here. Porsche is Rolex. Porsche is Rolex. Porsche is Rolex. >> Mhm. >> Mhm. >> Mhm. >> I mean, they make an absolute crap ton >> I mean, they make an absolute crap ton >> I mean, they make an absolute crap ton of them. Rolex is a million a year and of them. Rolex is a million a year and of them. Rolex is a million a year and Porsche, I don't have the numbers in Porsche, I don't have the numbers in Porsche, I don't have the numbers in front of me, but it's 30 front of me, but it's 30 front of me, but it's 30 >> 320,000 or so a year. >> 320,000 or so a year. >> 320,000 or so a year. >> Exactly. and is an incredible brand. >> Exactly. and is an incredible brand. >> Exactly. and is an incredible brand. Yes, just like Rolex is an incredible Yes, just like Rolex is an incredible Yes, just like Rolex is an incredible brand. brand. brand. >> And I see them driving around my >> And I see them driving around my >> And I see them driving around my neighborhood all the time and I think neighborhood all the time and I think neighborhood all the time and I think they are amazing polished pieces of they are amazing polished pieces of they are amazing polished pieces of engineering and I respect them for the engineering and I respect them for the engineering and I respect them for the engineering and the same way that I'm engineering and the same way that I'm engineering and the same way that I'm wearing a Rolex Explorer on my wrist. I wearing a Rolex Explorer on my wrist. I wearing a Rolex Explorer on my wrist. I could easily see buying a Porsche. It it could easily see buying a Porsche. It it could easily see buying a Porsche. It it feels reasonably me. Could I see going feels reasonably me. Could I see going feels reasonably me. Could I see going out and buying a PC Philippe? out and buying a PC Philippe? out and buying a PC Philippe? Not really. The same way that I say not Not really. The same way that I say not Not really. The same way that I say not really about Ferrari. If you're going to really about Ferrari. If you're going to really about Ferrari. If you're going to make the analogy, the crude one that make the analogy, the crude one that make the analogy, the crude one that Porsche is Rolex, I think you can make Porsche is Rolex, I think you can make Porsche is Rolex, I think you can make the analogy that Ferrari is PC Philippe. the analogy that Ferrari is PC Philippe. the analogy that Ferrari is PC Philippe. Y it's much smaller production. It's an Y it's much smaller production. It's an Y it's much smaller production. It's an order of magnitude more expensive. The order of magnitude more expensive. The order of magnitude more expensive. The big difference here being that Ferrari big difference here being that Ferrari big difference here being that Ferrari is much sort of flashier than Pek is as is much sort of flashier than Pek is as is much sort of flashier than Pek is as a brand and they also have the TFosce a brand and they also have the TFosce a brand and they also have the TFosce which adds this whole different element which adds this whole different element which adds this whole different element to it. So to directly answer your to it. So to directly answer your to it. So to directly answer your question, I think branding shows up more question, I think branding shows up more question, I think branding shows up more in luxury watches than it does in luxury in luxury watches than it does in luxury in luxury watches than it does in luxury cars for the almost like the lack of cars for the almost like the lack of cars for the almost like the lack of experiencable intrinsic product experiencable intrinsic product experiencable intrinsic product characteristics that it's just hard to characteristics that it's just hard to characteristics that it's just hard to experience the product in a watch, but experience the product in a watch, but experience the product in a watch, but it's easy to experience the product it's easy to experience the product it's easy to experience the product differences in a car. differences in a car. differences in a car. >> Yep. Totally agree. >> Yep. Totally agree. >> Yep. Totally agree. >> So you rely more on brand in in watches. >> So you rely more on brand in in watches. >> So you rely more on brand in in watches. >> Yep. Okay, let's step through some of >> Yep. Okay, let's step through some of >> Yep. Okay, let's step through some of these others because I think some of these others because I think some of these others because I think some of them are quite interesting. Keeping with them are quite interesting. Keeping with them are quite interesting. Keeping with the pot Ferrari comparison, I do think the pot Ferrari comparison, I do think the pot Ferrari comparison, I do think Ferrari has this really interesting Ferrari has this really interesting Ferrari has this really interesting sweet spot of scale economies that I sweet spot of scale economies that I sweet spot of scale economies that I don't think we've ever seen before where don't think we've ever seen before where don't think we've ever seen before where like they like they like they >> they can do things Pagani can't, but >> they can do things Pagani can't, but >> they can do things Pagani can't, but they can also do things that Toyota they can also do things that Toyota they can also do things that Toyota can't. can't. can't. >> Yes. Exactly. Exactly. They have power >> Yes. Exactly. Exactly. They have power >> Yes. Exactly. Exactly. They have power because of their scale economies and because of their scale economies and because of their scale economies and because they're like Goldilocks. They're because they're like Goldilocks. They're because they're like Goldilocks. They're like just right. They're big enough but like just right. They're big enough but like just right. They're big enough but not too big and they're small enough but not too big and they're small enough but not too big and they're small enough but not too small. not too small. not too small. >> Yes. If they were any bigger, they would >> Yes. If they were any bigger, they would >> Yes. If they were any bigger, they would be sort of handcuffed by their overhead. be sort of handcuffed by their overhead. be sort of handcuffed by their overhead. And if they were any smaller, then they And if they were any smaller, then they And if they were any smaller, then they couldn't do some of the innovations that couldn't do some of the innovations that couldn't do some of the innovations that they do and and design all the programs they do and and design all the programs they do and and design all the programs they design and all that sort of thing. they design and all that sort of thing. they design and all that sort of thing. >> Exactly. >> Exactly. >> Exactly. >> There's absolutely a scale economy to >> There's absolutely a scale economy to >> There's absolutely a scale economy to the community. I mean, the fact that the community. I mean, the fact that the community. I mean, the fact that they have all these racing programs and they have all these racing programs and they have all these racing programs and car meetups and factory tours, you need car meetups and factory tours, you need car meetups and factory tours, you need to be a certain scale to to support all to be a certain scale to to support all to be a certain scale to to support all of those operations. of those operations. of those operations. >> Yep. I I totally agree with part of >> Yep. I I totally agree with part of >> Yep. I I totally agree with part of being the the minimum. I thought you being the the minimum. I thought you being the the minimum. I thought you were going to go to network economies. were going to go to network economies. were going to go to network economies. Ferrari absolutely has network economies Ferrari absolutely has network economies Ferrari absolutely has network economies 100%. With the toosce and the community 100%. With the toosce and the community 100%. With the toosce and the community and the nature of the community and and the nature of the community and and the nature of the community and being so open and uh as you perfectly being so open and uh as you perfectly being so open and uh as you perfectly put it, it's a way for older men to make put it, it's a way for older men to make put it, it's a way for older men to make friends. friends. friends. >> Yes. >> Yes. >> Yes. >> Whether you're a member of the Tosi or a >> Whether you're a member of the Tosi or a >> Whether you're a member of the Tosi or a Ferrarista, a big part of what you are Ferrarista, a big part of what you are Ferrarista, a big part of what you are doing is making friends. doing is making friends. doing is making friends. >> Yes. It's a network economies by having >> Yes. It's a network economies by having >> Yes. It's a network economies by having a like robust rich community around your a like robust rich community around your a like robust rich community around your product are almost this free product are almost this free product are almost this free defensibility because there's just so defensibility because there's just so defensibility because there's just so much more predisposition to want to buy much more predisposition to want to buy much more predisposition to want to buy something with a Ferrari logo on it something with a Ferrari logo on it something with a Ferrari logo on it because of the network economy you were because of the network economy you were because of the network economy you were just describing, David. just describing, David. just describing, David. >> Yeah. I mean, it's astonishing calling >> Yeah. I mean, it's astonishing calling >> Yeah. I mean, it's astonishing calling back to our F1 episode. Ferrari is the back to our F1 episode. Ferrari is the back to our F1 episode. Ferrari is the most popular F1 team in the world by a most popular F1 team in the world by a most popular F1 team in the world by a large margin large margin large margin >> and hasn't really won much since Michael >> and hasn't really won much since Michael >> and hasn't really won much since Michael Schumacher. Schumacher. Schumacher. >> Yeah. and sells the most expensive cars >> Yeah. and sells the most expensive cars >> Yeah. and sells the most expensive cars that the vast vast vast majority of that the vast vast vast majority of that the vast vast vast majority of their fans will never be able to buy. their fans will never be able to buy. their fans will never be able to buy. >> Absolutely exclusionary. >> Absolutely exclusionary. >> Absolutely exclusionary. >> I bet a lot of fans of the Mercedes >> I bet a lot of fans of the Mercedes >> I bet a lot of fans of the Mercedes racing team, one way or another, can racing team, one way or another, can racing team, one way or another, can find a way to buy a Mercedes. Almost find a way to buy a Mercedes. Almost find a way to buy a Mercedes. Almost none of the fans of Ferrari can find a none of the fans of Ferrari can find a none of the fans of Ferrari can find a way to buy a Ferrari. way to buy a Ferrari. way to buy a Ferrari. >> All right, you just pulled forward my >> All right, you just pulled forward my >> All right, you just pulled forward my quintessence, so I'm just going to do it quintessence, so I'm just going to do it quintessence, so I'm just going to do it now. now. now. >> Great. >> Great. >> Great. >> Ferrari is both inclusive and exclusive. >> Ferrari is both inclusive and exclusive. >> Ferrari is both inclusive and exclusive. It has the exclusivity of a luxury brand It has the exclusivity of a luxury brand It has the exclusivity of a luxury brand but the inclusivity of a sports team. but the inclusivity of a sports team. but the inclusivity of a sports team. >> Yeah, that's it. >> Yeah, that's it. >> Yeah, that's it. >> I mean, it's this amazing marriage that >> I mean, it's this amazing marriage that >> I mean, it's this amazing marriage that this is going to sound so self- serving, this is going to sound so self- serving, this is going to sound so self- serving, but I was just sitting there nodding but I was just sitting there nodding but I was just sitting there nodding reading their financials because this is reading their financials because this is reading their financials because this is exactly acquired strategy. We are exactly acquired strategy. We are exactly acquired strategy. We are unbelievably exclusive about the unbelievably exclusive about the unbelievably exclusive about the companies that we are willing to do companies that we are willing to do companies that we are willing to do these editorial deep dives on. We're these editorial deep dives on. We're these editorial deep dives on. We're unbelievably exclusive about our unbelievably exclusive about our unbelievably exclusive about our sponsors and yet we're as inclusive as sponsors and yet we're as inclusive as sponsors and yet we're as inclusive as possible for the community. possible for the community. possible for the community. >> It should be the best deal on the >> It should be the best deal on the >> It should be the best deal on the internet. We want to make tickets cheap internet. We want to make tickets cheap internet. We want to make tickets cheap whenever we have big live events. You whenever we have big live events. You whenever we have big live events. You and I have always talked about it as and I have always talked about it as and I have always talked about it as Costco in the front and Hermes in the Costco in the front and Hermes in the Costco in the front and Hermes in the back. But really, we're just Ferrari back. But really, we're just Ferrari back. But really, we're just Ferrari figured this out first. Yes. It's so figured this out first. Yes. It's so figured this out first. Yes. It's so smart. smart. smart. >> All right. Well, we're going to have to >> All right. Well, we're going to have to >> All right. Well, we're going to have to change how we talk about acquired. change how we talk about acquired. change how we talk about acquired. >> If you can marry a luxury brand with a >> If you can marry a luxury brand with a >> If you can marry a luxury brand with a sports team, it is a business cheat sports team, it is a business cheat sports team, it is a business cheat code. code. code. >> Yes. Yes. I love it. Oh, that's such a >> Yes. Yes. I love it. Oh, that's such a >> Yes. Yes. I love it. Oh, that's such a great quintessence. All right, back to great quintessence. All right, back to great quintessence. All right, back to powers. powers. powers. >> Ah, it feels anticlimactic to come back >> Ah, it feels anticlimactic to come back >> Ah, it feels anticlimactic to come back to powers, but let's let's let's run to powers, but let's let's let's run to powers, but let's let's let's run through it quickly. All right, so we did through it quickly. All right, so we did through it quickly. All right, so we did scale economies, network economies, scale economies, network economies, scale economies, network economies, branding, counterpositioning. branding, counterpositioning. branding, counterpositioning. >> Did this even ever exist in the first >> Did this even ever exist in the first >> Did this even ever exist in the first place? Cuz this almost never exists when place? Cuz this almost never exists when place? Cuz this almost never exists when you're an incumbent, but trying to think you're an incumbent, but trying to think you're an incumbent, but trying to think if they didn't if they used if they didn't if they used if they didn't if they used counterpositioning in the takeoff phase. counterpositioning in the takeoff phase. counterpositioning in the takeoff phase. >> Yeah, I don't really think so. I think >> Yeah, I don't really think so. I think >> Yeah, I don't really think so. I think they were just doing something different they were just doing something different they were just doing something different as we talked about by having the team, as we talked about by having the team, as we talked about by having the team, the constructor, and the services all in the constructor, and the services all in the constructor, and the services all in one house. Oh, they're counterpositioned one house. Oh, they're counterpositioned one house. Oh, they're counterpositioned against the houses of brands today. They against the houses of brands today. They against the houses of brands today. They can do stuff that Lamborghini can't do can do stuff that Lamborghini can't do can do stuff that Lamborghini can't do because of the because of the because of the >> the platform sharing. >> the platform sharing. >> the platform sharing. >> Yeah. >> Yeah. >> Yeah. >> Uh switching costs. There's there's no >> Uh switching costs. There's there's no >> Uh switching costs. There's there's no switching cost. switching cost. switching cost. >> In fact, I think most people who own >> In fact, I think most people who own >> In fact, I think most people who own Ferraris own other cars and want to keep Ferraris own other cars and want to keep Ferraris own other cars and want to keep adding other cars. adding other cars. adding other cars. >> Yep. Cornered resource. Absolutely. They >> Yep. Cornered resource. Absolutely. They >> Yep. Cornered resource. Absolutely. They have Enzo and the history and the myth have Enzo and the history and the myth have Enzo and the history and the myth and the legend of Ferrari and that is and the legend of Ferrari and that is and the legend of Ferrari and that is not going anywhere obviously. And not going anywhere obviously. And not going anywhere obviously. And actually for a while their F1 team had actually for a while their F1 team had actually for a while their F1 team had an advantage because they have their own an advantage because they have their own an advantage because they have their own racetrack that no one else has. racetrack that no one else has. racetrack that no one else has. >> I mean they have their own wind tunnel >> I mean they have their own wind tunnel >> I mean they have their own wind tunnel and everything but like they also own a and everything but like they also own a and everything but like they also own a >> a racetrack. >> a racetrack. >> a racetrack. >> Yes. >> Yes. >> Yes. >> Yes. Yes. >> Yes. Yes. >> Yes. Yes. >> Do they have process power? >> Do they have process power? >> Do they have process power? >> Process power. I don't think they have >> Process power. I don't think they have >> Process power. I don't think they have any obvious or specific process power. any obvious or specific process power. any obvious or specific process power. Sure. There's institutional knowledge in Sure. There's institutional knowledge in Sure. There's institutional knowledge in the factories and they have their very the factories and they have their very the factories and they have their very unique way of building cars that is unique way of building cars that is unique way of building cars that is different than any other auto different than any other auto different than any other auto manufacturer. manufacturer. manufacturer. I don't think that's quite process I don't think that's quite process I don't think that's quite process power. I think their power lies mostly power. I think their power lies mostly power. I think their power lies mostly in the other categories. in the other categories. in the other categories. >> Yeah, I agree. So the question kind of >> Yeah, I agree. So the question kind of >> Yeah, I agree. So the question kind of becomes what is the primary reason why becomes what is the primary reason why becomes what is the primary reason why imitators have failed to execute Ferrari imitators have failed to execute Ferrari imitators have failed to execute Ferrari strategy as well as Ferrari? And the strategy as well as Ferrari? And the strategy as well as Ferrari? And the most obvious is McLaren. They're trying most obvious is McLaren. They're trying most obvious is McLaren. They're trying to basically do the same thing. There's to basically do the same thing. There's to basically do the same thing. There's Lamborghini that we've talked about. Lamborghini that we've talked about. Lamborghini that we've talked about. There's Aston Martin. It's a much There's Aston Martin. It's a much There's Aston Martin. It's a much smaller production, but there's Bugatti. smaller production, but there's Bugatti. smaller production, but there's Bugatti. I mean, why are there no other Ferraris? I mean, why are there no other Ferraris? I mean, why are there no other Ferraris? >> I think I would posit that there are no >> I think I would posit that there are no >> I think I would posit that there are no other Ferraris other Ferraris other Ferraris because of the continuity. Even through because of the continuity. Even through because of the continuity. Even through all the crazy ups and downs and the wild all the crazy ups and downs and the wild all the crazy ups and downs and the wild story and the journey that we told on story and the journey that we told on story and the journey that we told on this episode, Ferrari has always been this episode, Ferrari has always been this episode, Ferrari has always been Ferrari. The core myth has always Ferrari. The core myth has always Ferrari. The core myth has always remained intact and the products as up remained intact and the products as up remained intact and the products as up and down as they have been over the and down as they have been over the and down as they have been over the years more or less have always delivered years more or less have always delivered years more or less have always delivered on what it is that you are buying when on what it is that you are buying when on what it is that you are buying when you buy a Ferrari and that has been you buy a Ferrari and that has been you buy a Ferrari and that has been unbroken all the way back to 1947. I unbroken all the way back to 1947. I unbroken all the way back to 1947. I mean for God's sakes they're the only F1 mean for God's sakes they're the only F1 mean for God's sakes they're the only F1 team that has been continuously team that has been continuously team that has been continuously operating for all of F1. operating for all of F1. operating for all of F1. >> Yeah, >> Yeah, >> Yeah, >> that's my answer. >> that's my answer. >> that's my answer. >> I think that is largely correct. It is >> I think that is largely correct. It is >> I think that is largely correct. It is interesting for all the people who interesting for all the people who interesting for all the people who complain, oh, you know, that model was complain, oh, you know, that model was complain, oh, you know, that model was crappy or this strategy was crap. It's crappy or this strategy was crap. It's crappy or this strategy was crap. It's actually a pretty narrow window where actually a pretty narrow window where actually a pretty narrow window where more or less they were still being more or less they were still being more or less they were still being Ferrari, even if you have a particular Ferrari, even if you have a particular Ferrari, even if you have a particular gripe. gripe. gripe. >> Yep. And certainly if you compare it to >> Yep. And certainly if you compare it to >> Yep. And certainly if you compare it to the ups and downs of any other car the ups and downs of any other car the ups and downs of any other car company, it's quite continuous. company, it's quite continuous. company, it's quite continuous. >> And my answer is different for each one >> And my answer is different for each one >> And my answer is different for each one of these. I mean, for example, of these. I mean, for example, of these. I mean, for example, Lamborghini, how do you build a company Lamborghini, how do you build a company Lamborghini, how do you build a company like this without racing heritage to tie like this without racing heritage to tie like this without racing heritage to tie it to? If you're going to build a luxury it to? If you're going to build a luxury it to? If you're going to build a luxury brand, you need time and you need brand, you need time and you need brand, you need time and you need heritage where you tie it to an heritage where you tie it to an heritage where you tie it to an important emotional thing that people important emotional thing that people important emotional thing that people lust for connection over. And in cars, lust for connection over. And in cars, lust for connection over. And in cars, it's racing. I'm I'm sorry. It's just it's racing. I'm I'm sorry. It's just it's racing. I'm I'm sorry. It's just it's the it's the obvious thing to tie it's the it's the obvious thing to tie it's the it's the obvious thing to tie the emotion of your brand to. Aston the emotion of your brand to. Aston the emotion of your brand to. Aston Martin has fallen down because they've Martin has fallen down because they've Martin has fallen down because they've been terrible at running a business. been terrible at running a business. been terrible at running a business. McLaren, various changes in ownership McLaren, various changes in ownership McLaren, various changes in ownership and leadership and strategy. So and leadership and strategy. So and leadership and strategy. So different for different reasons, but no different for different reasons, but no different for different reasons, but no one has over what is it 80 years been one has over what is it 80 years been one has over what is it 80 years been able to run the Ferrari playbook. able to run the Ferrari playbook. able to run the Ferrari playbook. >> Yep. All right, quintessence. You >> Yep. All right, quintessence. You >> Yep. All right, quintessence. You already gave yours, which I love. The already gave yours, which I love. The already gave yours, which I love. The marriage of a luxury brand and a sports marriage of a luxury brand and a sports marriage of a luxury brand and a sports team. What could be more team. What could be more team. What could be more quintessentially acquired than the quintessentially acquired than the quintessentially acquired than the marriage of a luxury brand and a sports marriage of a luxury brand and a sports marriage of a luxury brand and a sports team? I think for me as I was thinking team? I think for me as I was thinking team? I think for me as I was thinking about quintessence I I I sort of took about quintessence I I I sort of took about quintessence I I I sort of took the question that you and I posed to the question that you and I posed to the question that you and I posed to each other at the start of our research each other at the start of our research each other at the start of our research journey here in Ferrari which is what journey here in Ferrari which is what journey here in Ferrari which is what are you buying when you buy a Ferrari? are you buying when you buy a Ferrari? are you buying when you buy a Ferrari? And for me it's two things that you're And for me it's two things that you're And for me it's two things that you're buying. You're buying one passion. buying. You're buying one passion. buying. You're buying one passion. There's undeniable purely There's undeniable purely There's undeniable purely quintessentially Italian and Enzo and quintessentially Italian and Enzo and quintessentially Italian and Enzo and Ferrari passion that goes into every one Ferrari passion that goes into every one Ferrari passion that goes into every one of these cars from the range to the of these cars from the range to the of these cars from the range to the Icona series certainly to the supercars Icona series certainly to the supercars Icona series certainly to the supercars and I think probably even the puranguay and I think probably even the puranguay and I think probably even the puranguay even the FUVs even the FUVs even the FUVs >> certainly >> certainly >> certainly >> certainly >> certainly >> certainly >> it's funny David you know this but I >> it's funny David you know this but I >> it's funny David you know this but I talked with the CEO Benadetto Vignia talked with the CEO Benadetto Vignia talked with the CEO Benadetto Vignia yesterday and uh he told me we don't yesterday and uh he told me we don't yesterday and uh he told me we don't sell a car we sell a dream sell a car we sell a dream sell a car we sell a dream >> and I think That's an old legal line, >> and I think That's an old legal line, >> and I think That's an old legal line, but yes, but yes, but yes, >> it's true. It's true. You know, and >> it's true. It's true. You know, and >> it's true. It's true. You know, and compare that to compare that to compare that to >> other cars and it's just, you know, most >> other cars and it's just, you know, most >> other cars and it's just, you know, most cars there's there's zero passion in cars there's there's zero passion in cars there's there's zero passion in them. Uh, so one, I think it's passion, them. Uh, so one, I think it's passion, them. Uh, so one, I think it's passion, and two, I really do think there's and two, I really do think there's and two, I really do think there's something to the ability to feel something to the ability to feel something to the ability to feel maximally alive in a Ferrari. And that maximally alive in a Ferrari. And that maximally alive in a Ferrari. And that comes right back to Enzo and his story comes right back to Enzo and his story comes right back to Enzo and his story and all the great tragedy and death that and all the great tragedy and death that and all the great tragedy and death that was part of it. like buying a Ferrari, was part of it. like buying a Ferrari, was part of it. like buying a Ferrari, you are buying a weapon that you can use you are buying a weapon that you can use you are buying a weapon that you can use to, you know, fight against death and to, you know, fight against death and to, you know, fight against death and scream into the void should you so scream into the void should you so scream into the void should you so choose. choose. choose. >> And the one thing I will add to that, >> And the one thing I will add to that, >> And the one thing I will add to that, back on our Rolex episode, we threw out back on our Rolex episode, we threw out back on our Rolex episode, we threw out the idea of a uh functional alibi, a the idea of a uh functional alibi, a the idea of a uh functional alibi, a reason you could claim that you need reason you could claim that you need reason you could claim that you need such a watch. For Ferrari, they have such a watch. For Ferrari, they have such a watch. For Ferrari, they have lots of incredible alibis. Most people lots of incredible alibis. Most people lots of incredible alibis. Most people do not experience the thing that you do not experience the thing that you do not experience the thing that you just described, feeling maximally alive just described, feeling maximally alive just described, feeling maximally alive and going right up to the edge. But that and going right up to the edge. But that and going right up to the edge. But that is one of several is one of several is one of several plausible alibis for why you can plausible alibis for why you can plausible alibis for why you can convince yourself convince yourself convince yourself >> that you are buying this thing. For for >> that you are buying this thing. For for >> that you are buying this thing. For for me, it's it's the incredible me, it's it's the incredible me, it's it's the incredible engineering. I think for some people engineering. I think for some people engineering. I think for some people it's the racing heritage. I also think it's the racing heritage. I also think it's the racing heritage. I also think their cool manufacturing and their their cool manufacturing and their their cool manufacturing and their craftsmanship. These are all tremendous craftsmanship. These are all tremendous craftsmanship. These are all tremendous assets that the brand has that are assets that the brand has that are assets that the brand has that are extremely plausible alibis that you can extremely plausible alibis that you can extremely plausible alibis that you can tell yourself why you are buying this. tell yourself why you are buying this. tell yourself why you are buying this. >> Yeah, that's a great point. >> Yeah, that's a great point. >> Yeah, that's a great point. >> Even if what you're really really doing >> Even if what you're really really doing >> Even if what you're really really doing is social signal is social signal is social signal >> or you have too much money and you truly >> or you have too much money and you truly >> or you have too much money and you truly don't know what to do with it and this don't know what to do with it and this don't know what to do with it and this seems fun. I mean that's seems fun. I mean that's seems fun. I mean that's >> or you view it as an investment. >> or you view it as an investment. >> or you view it as an investment. >> That's right. >> That's right. >> That's right. >> Yeah. Well, that is a great place to >> Yeah. Well, that is a great place to >> Yeah. Well, that is a great place to leave our story for today. We have a few leave our story for today. We have a few leave our story for today. We have a few fun things here before we wrap up the fun things here before we wrap up the fun things here before we wrap up the episode. I've got a couple uh bits of episode. I've got a couple uh bits of episode. I've got a couple uh bits of trivia for you, David. I don't know if trivia for you, David. I don't know if trivia for you, David. I don't know if you know them. you know them. you know them. >> All right, I've got a couple. >> All right, I've got a couple. >> All right, I've got a couple. >> Is one of yours the Lamborghini story? >> Is one of yours the Lamborghini story? >> Is one of yours the Lamborghini story? >> Yes. Yes. All right, we got to tell the >> Yes. Yes. All right, we got to tell the >> Yes. Yes. All right, we got to tell the actual Lamborghini story here. actual Lamborghini story here. actual Lamborghini story here. >> Did you know so the way that this story >> Did you know so the way that this story >> Did you know so the way that this story is out in the world, there is an issue is out in the world, there is an issue is out in the world, there is an issue of thoroughbred and classic cars from of thoroughbred and classic cars from of thoroughbred and classic cars from January of 1991. And it is a quote from January of 1991. And it is a quote from January of 1991. And it is a quote from Fuio Lamborghini that is in this Fuio Lamborghini that is in this Fuio Lamborghini that is in this printonly magazine. So this is the printonly magazine. So this is the printonly magazine. So this is the origin of of the myth of the founding of origin of of the myth of the founding of origin of of the myth of the founding of Lamborghini is in this magazine. I did Lamborghini is in this magazine. I did Lamborghini is in this magazine. I did not find that. That's incredible. All not find that. That's incredible. All not find that. That's incredible. All right. Well, do do you want to tell it? right. Well, do do you want to tell it? right. Well, do do you want to tell it? >> You give your side of the story and then >> You give your side of the story and then >> You give your side of the story and then I'll give the quote. I'll give the quote. I'll give the quote. >> Okay. So, the legend out there about the >> Okay. So, the legend out there about the >> Okay. So, the legend out there about the founding of Lamborghini is that Fuia founding of Lamborghini is that Fuia founding of Lamborghini is that Fuia Lamborghini was a wealthy Italian Lamborghini was a wealthy Italian Lamborghini was a wealthy Italian tractor magnet manufacturer. Yeah. tractor magnet manufacturer. Yeah. tractor magnet manufacturer. Yeah. >> Who was dissatisfied with the clutch in >> Who was dissatisfied with the clutch in >> Who was dissatisfied with the clutch in his Ferrari that he owned. And he went his Ferrari that he owned. And he went his Ferrari that he owned. And he went to Enzo to complain about it. And to Enzo to complain about it. And to Enzo to complain about it. And >> and here's the quote. >> and here's the quote. >> and here's the quote. >> Great. >> Great. >> Great. >> The problem with the clutch was never >> The problem with the clutch was never >> The problem with the clutch was never cured. So I decided to talk to Enzo cured. So I decided to talk to Enzo cured. So I decided to talk to Enzo Ferrari. I had to wait for him for a Ferrari. I had to wait for him for a Ferrari. I had to wait for him for a very long time. Ferrari, your cars are very long time. Ferrari, your cars are very long time. Ferrari, your cars are rubbish. I complained. Ilcommendator was rubbish. I complained. Ilcommendator was rubbish. I complained. Ilcommendator was furious. Lamborghini, you may be able to furious. Lamborghini, you may be able to furious. Lamborghini, you may be able to drive a tractor, but you will never be drive a tractor, but you will never be drive a tractor, but you will never be able to handle a Ferrari proper. This able to handle a Ferrari proper. This able to handle a Ferrari proper. This was the point where I finally decided to was the point where I finally decided to was the point where I finally decided to make a perfect car. make a perfect car. make a perfect car. Now, the reality is that was some uh an Now, the reality is that was some uh an Now, the reality is that was some uh an intentional attempt at mythbuilding on intentional attempt at mythbuilding on intentional attempt at mythbuilding on the part of Fuio. That never happened. the part of Fuio. That never happened. the part of Fuio. That never happened. The real story is that one of his The real story is that one of his The real story is that one of his tractor mechanics was repairing one of tractor mechanics was repairing one of tractor mechanics was repairing one of Fuio's Ferraris and found that some of Fuio's Ferraris and found that some of Fuio's Ferraris and found that some of the parts that were used in the Ferraris the parts that were used in the Ferraris the parts that were used in the Ferraris were quite similar to the parts that were quite similar to the parts that were quite similar to the parts that they used in the tractors and said to they used in the tractors and said to they used in the tractors and said to Fuio like, "Hey, Fuio like, "Hey, Fuio like, "Hey, >> we could try making cars, too. I bet we >> we could try making cars, too. I bet we >> we could try making cars, too. I bet we can be at least as good as this Enzo can be at least as good as this Enzo can be at least as good as this Enzo guy." guy." guy." >> I don't know. Everyone involved in these >> I don't know. Everyone involved in these >> I don't know. Everyone involved in these stories is long dead. Could be some of stories is long dead. Could be some of stories is long dead. Could be some of column A and some of column B. column A and some of column B. column A and some of column B. >> That's true. That's true. That is the >> That's true. That's true. That is the >> That's true. That's true. That is the legend of the founding of Lamborghini. legend of the founding of Lamborghini. legend of the founding of Lamborghini. >> Yes. >> Yes. >> Yes. >> I love it. >> I love it. >> I love it. >> All right. My second bit of trivia is >> All right. My second bit of trivia is >> All right. My second bit of trivia is not a confirmed fact, but it's something not a confirmed fact, but it's something not a confirmed fact, but it's something that I've been kind of thinking through. that I've been kind of thinking through. that I've been kind of thinking through. I had seen numbers floating around out I had seen numbers floating around out I had seen numbers floating around out there of the number of clients that there of the number of clients that there of the number of clients that Ferrari knows the name of. They say in Ferrari knows the name of. They say in Ferrari knows the name of. They say in their public reporting that they have their public reporting that they have their public reporting that they have 90,000 active owners and another 90,000 90,000 active owners and another 90,000 90,000 active owners and another 90,000 who currently own Ferraris but haven't who currently own Ferraris but haven't who currently own Ferraris but haven't bought in the last 5 years. I don't bought in the last 5 years. I don't bought in the last 5 years. I don't think these are estimates. If there's think these are estimates. If there's think these are estimates. If there's only 180,000 rows that they need in a only 180,000 rows that they need in a only 180,000 rows that they need in a CRM, CRM, CRM, >> yeah, it's completely reasonable that >> yeah, it's completely reasonable that >> yeah, it's completely reasonable that they know every owner of every Ferrari. they know every owner of every Ferrari. they know every owner of every Ferrari. >> I think they have a giant spreadsheet >> I think they have a giant spreadsheet >> I think they have a giant spreadsheet with names mapped to serial numbers and with names mapped to serial numbers and with names mapped to serial numbers and who owns every single car. Yeah, that's who owns every single car. Yeah, that's who owns every single car. Yeah, that's crazy to think about, but completely crazy to think about, but completely crazy to think about, but completely reasonable reasonable reasonable >> because think about it. What are the >> because think about it. What are the >> because think about it. What are the ways in which they would not have your ways in which they would not have your ways in which they would not have your information? If you bought it new, information? If you bought it new, information? If you bought it new, they've got your information. If you they've got your information. If you they've got your information. If you bought it used from a dealer, they've bought it used from a dealer, they've bought it used from a dealer, they've got your information. If you bought it got your information. If you bought it got your information. If you bought it in a private sale at auction, pretty in a private sale at auction, pretty in a private sale at auction, pretty sure they can get your information. But sure they can get your information. But sure they can get your information. But if not, you probably want to get one of if not, you probably want to get one of if not, you probably want to get one of those $6 to $10,000 certificates here those $6 to $10,000 certificates here those $6 to $10,000 certificates here pretty soon, pretty soon, pretty soon, >> right? The Classic K. Yep. Exactly. >> right? The Classic K. Yep. Exactly. >> right? The Classic K. Yep. Exactly. >> Which is going to involve contacting the >> Which is going to involve contacting the >> Which is going to involve contacting the factory, getting your information, factory, getting your information, factory, getting your information, >> you know, track days. There's like all >> you know, track days. There's like all >> you know, track days. There's like all these community programs. these community programs. these community programs. >> I think they know every single owner who >> I think they know every single owner who >> I think they know every single owner who owns every single car. owns every single car. owns every single car. >> I bet they do. I bet you're right. >> I bet they do. I bet you're right. >> I bet they do. I bet you're right. >> Isn't that awesome? >> Isn't that awesome? >> Isn't that awesome? >> Yeah. We'll have to ask him next time we >> Yeah. We'll have to ask him next time we >> Yeah. We'll have to ask him next time we chat with them. chat with them. chat with them. >> That's right. >> That's right. >> That's right. >> All right. My uh second and last one. I >> All right. My uh second and last one. I >> All right. My uh second and last one. I am so sure I'm going to get you with am so sure I'm going to get you with am so sure I'm going to get you with this one. The 1949 this one. The 1949 this one. The 1949 Limal that Luigi Kennedy won started a Limal that Luigi Kennedy won started a Limal that Luigi Kennedy won started a first major victory for Ferrari. example first major victory for Ferrari. example first major victory for Ferrari. example of the business model, you know, private of the business model, you know, private of the business model, you know, private client car, winning lemon, etc., etc. client car, winning lemon, etc., etc. client car, winning lemon, etc., etc. There was another privatelyowned Ferrari There was another privatelyowned Ferrari There was another privatelyowned Ferrari 166 that was entered by another Ferrari 166 that was entered by another Ferrari 166 that was entered by another Ferrari client in that very same race, the 1949 client in that very same race, the 1949 client in that very same race, the 1949 Leal. Do you know who that other client Leal. Do you know who that other client Leal. Do you know who that other client was? >> European or American? >> European or American? >> European. French. >> European. French. >> European. French. Is it a member of the Hermes family? Is it a member of the Hermes family? Is it a member of the Hermes family? >> Good guess, but no, you're not going to >> Good guess, but no, you're not going to >> Good guess, but no, you're not going to get it. get it. get it. >> I don't know. >> I don't know. >> I don't know. >> Pierre Louie Drifus of the >> Pierre Louie Drifus of the >> Pierre Louie Drifus of the >> Oh, Julia Louie Drifus. >> Oh, Julia Louie Drifus. >> Oh, Julia Louie Drifus. >> Yes. Yes. Of the famous Drifus family >> Yes. Yes. Of the famous Drifus family >> Yes. Yes. Of the famous Drifus family and Julia Louie Drifus' grandfather, and Julia Louie Drifus' grandfather, and Julia Louie Drifus' grandfather, Elaine from Seinfeld. Her grandfather Elaine from Seinfeld. Her grandfather Elaine from Seinfeld. Her grandfather was one of the first Ferrari clients and was one of the first Ferrari clients and was one of the first Ferrari clients and raced in Lemon. raced in Lemon. raced in Lemon. >> Oh my god. Ferrari. >> Oh my god. Ferrari. >> Oh my god. Ferrari. >> That is awesome. >> That is awesome. >> That is awesome. >> So awesome. So awesome. Side note, I >> So awesome. So awesome. Side note, I >> So awesome. So awesome. Side note, I think that is so crazy that she's like think that is so crazy that she's like think that is so crazy that she's like of the Lou Drifus family and went on to of the Lou Drifus family and went on to of the Lou Drifus family and went on to be a incredibly successful self-made be a incredibly successful self-made be a incredibly successful self-made actress coming from a multi-billion actress coming from a multi-billion actress coming from a multi-billion dollar European generational wealth. I dollar European generational wealth. I dollar European generational wealth. I mean, it's just a mean, it's just a mean, it's just a >> Yep. It's an incredible song. >> Yep. It's an incredible song. >> Yep. It's an incredible song. >> It's just a crazy smash together of two >> It's just a crazy smash together of two >> It's just a crazy smash together of two worlds. worlds. worlds. >> Totally. >> Totally. >> Totally. >> All right, carveouts. >> All right, carveouts. >> All right, carveouts. >> All right, carveouts. Let's do it. >> All right, carveouts. Let's do it. >> All right, carveouts. Let's do it. >> Go watch the movie Ford versus Ferrari. >> Go watch the movie Ford versus Ferrari. >> Go watch the movie Ford versus Ferrari. It's enormously fun. I have a few random It's enormously fun. I have a few random It's enormously fun. I have a few random shoutouts. Maison wheat sweaters. I'm shoutouts. Maison wheat sweaters. I'm shoutouts. Maison wheat sweaters. I'm wearing one right now. I have a whole wearing one right now. I have a whole wearing one right now. I have a whole closet full and they have been the most closet full and they have been the most closet full and they have been the most pleasant. I can wear them to bed or to pleasant. I can wear them to bed or to pleasant. I can wear them to bed or to dinner. I'm wearing them to recording. dinner. I'm wearing them to recording. dinner. I'm wearing them to recording. They feel like the most flexible item They feel like the most flexible item They feel like the most flexible item that I own and they're unbelievably that I own and they're unbelievably that I own and they're unbelievably comfortable. So, I uh I can't recommend comfortable. So, I uh I can't recommend comfortable. So, I uh I can't recommend Maison wheat sweaters enough. Maison wheat sweaters enough. Maison wheat sweaters enough. >> Oh, nice. I'm in the market for some new >> Oh, nice. I'm in the market for some new >> Oh, nice. I'm in the market for some new sweaters. I'll have to go check them sweaters. I'll have to go check them sweaters. I'll have to go check them out. out. out. >> Yeah, they're great. Uh Craig Hill >> Yeah, they're great. Uh Craig Hill >> Yeah, they're great. Uh Craig Hill scissors. scissors. scissors. >> Okay. Wow, this is a deep cut scissors. >> Okay. Wow, this is a deep cut scissors. >> Okay. Wow, this is a deep cut scissors. >> Sometimes I get tricked by Instagram, as >> Sometimes I get tricked by Instagram, as >> Sometimes I get tricked by Instagram, as my wife says, where I'm scrolling my wife says, where I'm scrolling my wife says, where I'm scrolling through and then I find like the perfect through and then I find like the perfect through and then I find like the perfect ad hitting me at the perfect moment for ad hitting me at the perfect moment for ad hitting me at the perfect moment for some product I didn't even know I some product I didn't even know I some product I didn't even know I needed. This pair of scissors, the ad is needed. This pair of scissors, the ad is needed. This pair of scissors, the ad is great cuz it says, "How come your great cuz it says, "How come your great cuz it says, "How come your scissors are like some flimsy sheet scissors are like some flimsy sheet scissors are like some flimsy sheet metal?" And when you cut something metal?" And when you cut something metal?" And when you cut something that's hard, sometimes the scissors that's hard, sometimes the scissors that's hard, sometimes the scissors split sideways. And don't you hate that split sideways. And don't you hate that split sideways. And don't you hate that when it doesn't actually cut and the when it doesn't actually cut and the when it doesn't actually cut and the little screw is actually not positioned little screw is actually not positioned little screw is actually not positioned in the place to give you maximum in the place to give you maximum in the place to give you maximum leverage? We've just gotten so cheap in leverage? We've just gotten so cheap in leverage? We've just gotten so cheap in how we make scissors. Don't you miss the how we make scissors. Don't you miss the how we make scissors. Don't you miss the scissors from your grandma's house when scissors from your grandma's house when scissors from your grandma's house when you were growing up from the 50s that you were growing up from the 50s that you were growing up from the 50s that were like metal and like really solid? were like metal and like really solid? were like metal and like really solid? Well, we have brought those back, but Well, we have brought those back, but Well, we have brought those back, but with the highest manufacturing quality, with the highest manufacturing quality, with the highest manufacturing quality, the best metals, this amazing grip, and the best metals, this amazing grip, and the best metals, this amazing grip, and I'll tell you, oh, and this the the way I'll tell you, oh, and this the the way I'll tell you, oh, and this the the way it slides when you when you squeeze them it slides when you when you squeeze them it slides when you when you squeeze them together to cut something is so together to cut something is so together to cut something is so unbelievably crisp, satisfying, smooth. unbelievably crisp, satisfying, smooth. unbelievably crisp, satisfying, smooth. and I bought them thinking like we'll and I bought them thinking like we'll and I bought them thinking like we'll see and they're expensive scissors. It's see and they're expensive scissors. It's see and they're expensive scissors. It's like $50 scissors or something and they like $50 scissors or something and they like $50 scissors or something and they show up and it is everything I could show up and it is everything I could show up and it is everything I could have hoped for. It is the Ferrari. I'm have hoped for. It is the Ferrari. I'm have hoped for. It is the Ferrari. I'm throwing away all my other scissors. I'm throwing away all my other scissors. I'm throwing away all my other scissors. I'm only using Craig Hill scissors forever. only using Craig Hill scissors forever. only using Craig Hill scissors forever. It's a fantastic product and uh after I It's a fantastic product and uh after I It's a fantastic product and uh after I bought it, I actually found out the the bought it, I actually found out the the bought it, I actually found out the the founders are acquired listeners. So, founders are acquired listeners. So, founders are acquired listeners. So, thank you so much for uh making a thank you so much for uh making a thank you so much for uh making a delightful product. delightful product. delightful product. >> Amazing. Amazing. Wow. Okay. I I don't >> Amazing. Amazing. Wow. Okay. I I don't >> Amazing. Amazing. Wow. Okay. I I don't think I could top that. That's That's think I could top that. That's That's think I could top that. That's That's great. That's an alltime carve out right great. That's an alltime carve out right great. That's an alltime carve out right there. All right. Mine uh Amazon grocery there. All right. Mine uh Amazon grocery there. All right. Mine uh Amazon grocery service has completely transformed service has completely transformed service has completely transformed groceries in my family. It launched in groceries in my family. It launched in groceries in my family. It launched in San Francisco a couple months ago. San Francisco a couple months ago. San Francisco a couple months ago. >> Oh, like at the end of your shopping >> Oh, like at the end of your shopping >> Oh, like at the end of your shopping journey. You just randomly start journey. You just randomly start journey. You just randomly start clicking and adding things to your cart. clicking and adding things to your cart. clicking and adding things to your cart. >> Yes. People have been trying to crack >> Yes. People have been trying to crack >> Yes. People have been trying to crack online grocery forever, including online grocery forever, including online grocery forever, including Amazon. You know, a variety of different Amazon. You know, a variety of different Amazon. You know, a variety of different ways. And I've tried them all. ways. And I've tried them all. ways. And I've tried them all. >> We get Amazon Fresh every week. >> We get Amazon Fresh every week. >> We get Amazon Fresh every week. >> Yeah. you know, Amazon Fresh or >> Yeah. you know, Amazon Fresh or >> Yeah. you know, Amazon Fresh or Instacart or there's Good Eggs here in Instacart or there's Good Eggs here in Instacart or there's Good Eggs here in San Francisco and like they all have San Francisco and like they all have San Francisco and like they all have their pros and cons, but you know, at their pros and cons, but you know, at their pros and cons, but you know, at the end of the day, like I mostly still the end of the day, like I mostly still the end of the day, like I mostly still went to the grocery store. Amazon has went to the grocery store. Amazon has went to the grocery store. Amazon has cracked it with Amazon grocery. cracked it with Amazon grocery. cracked it with Amazon grocery. >> You just click and add stuff on whenever >> You just click and add stuff on whenever >> You just click and add stuff on whenever you're ordering Amazon. I mean, there's you're ordering Amazon. I mean, there's you're ordering Amazon. I mean, there's a parent of two small children. I'm a parent of two small children. I'm a parent of two small children. I'm ordering from Amazon multiple times a ordering from Amazon multiple times a ordering from Amazon multiple times a week and I'm just clicking and adding on week and I'm just clicking and adding on week and I'm just clicking and adding on stuff for my daughter's lunches, stuff for my daughter's lunches, stuff for my daughter's lunches, whatever we need. Milk, you just add it whatever we need. Milk, you just add it whatever we need. Milk, you just add it on. There's no extra fees. There's no on. There's no extra fees. There's no on. There's no extra fees. There's no nothing. It just comes within a couple nothing. It just comes within a couple nothing. It just comes within a couple hours with your Amazon order. It's hours with your Amazon order. It's hours with your Amazon order. It's amazing. It is. I I go to the grocery so amazing. It is. I I go to the grocery so amazing. It is. I I go to the grocery so much less now over the last couple much less now over the last couple much less now over the last couple months now that I can just click and add months now that I can just click and add months now that I can just click and add stuff. It's life-changing. It's awesome. stuff. It's life-changing. It's awesome. stuff. It's life-changing. It's awesome. >> Right. I have I have a funny story about >> Right. I have I have a funny story about >> Right. I have I have a funny story about this. It just provides you like a little this. It just provides you like a little this. It just provides you like a little grid of pictures, right? It's like a grid of pictures, right? It's like a grid of pictures, right? It's like a little interstitial inserted before you little interstitial inserted before you little interstitial inserted before you finally get to the checkout page and you finally get to the checkout page and you finally get to the checkout page and you start tapping on the things that you start tapping on the things that you start tapping on the things that you want to to show up at your doorstep. I want to to show up at your doorstep. I want to to show up at your doorstep. I tapped the picture of a banana five tapped the picture of a banana five tapped the picture of a banana five times because I was like, "Oh, I need times because I was like, "Oh, I need times because I was like, "Oh, I need like five bananas." And I got five like five bananas." And I got five like five bananas." And I got five bushels of bananas. bushels of bananas. bushels of bananas. >> Bunches of bananas. >> Bunches of bananas. >> Bunches of bananas. >> Good thing you have a toddler who, if >> Good thing you have a toddler who, if >> Good thing you have a toddler who, if he's like any other toddler, you know, I he's like any other toddler, you know, I he's like any other toddler, you know, I assume eats a lot of bananas. assume eats a lot of bananas. assume eats a lot of bananas. >> Yeah. Yeah. >> Yeah. Yeah. >> Yeah. Yeah. >> My second carveout is one that you >> My second carveout is one that you >> My second carveout is one that you mentioned a couple episodes ago. Travel mentioned a couple episodes ago. Travel mentioned a couple episodes ago. Travel pro had reached out and pro had reached out and pro had reached out and >> sent you a bunch of, you know, great >> sent you a bunch of, you know, great >> sent you a bunch of, you know, great Travel Pro luggage. I bought the luggage Travel Pro luggage. I bought the luggage Travel Pro luggage. I bought the luggage first long before they sent it. And they first long before they sent it. And they first long before they sent it. And they sent it because I got a lot more luggage sent it because I got a lot more luggage sent it because I got a lot more luggage because we used it as a carveout. because we used it as a carveout. because we used it as a carveout. >> Right. Well, they also asked if I wanted >> Right. Well, they also asked if I wanted >> Right. Well, they also asked if I wanted some. I I said, "Sure." And they said, some. I I said, "Sure." And they said, some. I I said, "Sure." And they said, "Hey, we want to, you know, also send "Hey, we want to, you know, also send "Hey, we want to, you know, also send you this backpack." I'm like, "Okay." I you this backpack." I'm like, "Okay." I you this backpack." I'm like, "Okay." I don't I love travel backpacks, but I don't I love travel backpacks, but I don't I love travel backpacks, but I don't know that I need another one. I don't know that I need another one. I don't know that I need another one. I love this backpack, the Travel Pro love this backpack, the Travel Pro love this backpack, the Travel Pro altitude backpack. I've been using it a altitude backpack. I've been using it a altitude backpack. I've been using it a ton. I did a solo trip with my two girls ton. I did a solo trip with my two girls ton. I did a solo trip with my two girls while Jenny was away on a work trip for while Jenny was away on a work trip for while Jenny was away on a work trip for a weekend at Legoland and I packed for a weekend at Legoland and I packed for a weekend at Legoland and I packed for all of us in my backpack. It was all of us in my backpack. It was all of us in my backpack. It was incredible. I love this thing, the incredible. I love this thing, the incredible. I love this thing, the Travel Pro altitude backpack. I consider Travel Pro altitude backpack. I consider Travel Pro altitude backpack. I consider myself a connoisseur of travel myself a connoisseur of travel myself a connoisseur of travel backpacks. I've been through many in my backpacks. I've been through many in my backpacks. I've been through many in my life and I've never found one so perfect life and I've never found one so perfect life and I've never found one so perfect as this. So, thank you, Travel Pro. as this. So, thank you, Travel Pro. as this. So, thank you, Travel Pro. >> There you have it. Well, a huge list of >> There you have it. Well, a huge list of >> There you have it. Well, a huge list of thank yous that we want to give to all thank yous that we want to give to all thank yous that we want to give to all the great folks who helped with this the great folks who helped with this the great folks who helped with this episode. First to our partners this episode. First to our partners this episode. First to our partners this season, JP Morgan Payments, trusted, season, JP Morgan Payments, trusted, season, JP Morgan Payments, trusted, reliable payments infrastructure for reliable payments infrastructure for reliable payments infrastructure for your business, no matter the scale. To your business, no matter the scale. To your business, no matter the scale. To Verscell, the developer tools and cloud Verscell, the developer tools and cloud Verscell, the developer tools and cloud infrastructure to build and scale fast, infrastructure to build and scale fast, infrastructure to build and scale fast, secure applications on the web. secure applications on the web. secure applications on the web. Verscell.com/acquired Verscell.com/acquired Verscell.com/acquired to Service Now, the platform that puts to Service Now, the platform that puts to Service Now, the platform that puts AI to work for people. AI to work for people. AI to work for people. Serenow.com/acquired Serenow.com/acquired Serenow.com/acquired to Statsig, bringing experimentation, to Statsig, bringing experimentation, to Statsig, bringing experimentation, feature flags, and product analytics feature flags, and product analytics feature flags, and product analytics into one unified system for product into one unified system for product into one unified system for product teams. stats.com/acquired. teams. stats.com/acquired. teams. stats.com/acquired. You can click the link in the show notes You can click the link in the show notes You can click the link in the show notes to learn more. And as always, the to learn more. And as always, the to learn more. And as always, the sources, books, and everything that we sources, books, and everything that we sources, books, and everything that we did for research are linked in the show did for research are linked in the show did for research are linked in the show notes. Yes. And speaking of, I owe just notes. Yes. And speaking of, I owe just notes. Yes. And speaking of, I owe just a huge, huge thank you to Luca Delonte, a huge, huge thank you to Luca Delonte, a huge, huge thank you to Luca Delonte, who authored the definitive biography of who authored the definitive biography of who authored the definitive biography of Enzo Ferrari and was super generous, Enzo Ferrari and was super generous, Enzo Ferrari and was super generous, spent many hours on Zoom with me talking spent many hours on Zoom with me talking spent many hours on Zoom with me talking through the nuances of all this history. through the nuances of all this history. through the nuances of all this history. We are incredibly appreciative of his We are incredibly appreciative of his We are incredibly appreciative of his help. Second, most importantly to the help. Second, most importantly to the help. Second, most importantly to the other Luca, Luca Deontealo, truly a other Luca, Luca Deontealo, truly a other Luca, Luca Deontealo, truly a living legend who embodies Ferrari as living legend who embodies Ferrari as living legend who embodies Ferrari as much as anybody alive today. Thank you much as anybody alive today. Thank you much as anybody alive today. Thank you for taking time with us. to the also for taking time with us. to the also for taking time with us. to the also legendary Dominico Dissle, the former legendary Dominico Dissle, the former legendary Dominico Dissle, the former CEO of Gucci and business partner of Tom CEO of Gucci and business partner of Tom CEO of Gucci and business partner of Tom Fords, who spent another good chunk of Fords, who spent another good chunk of Fords, who spent another good chunk of time with me helping me really time with me helping me really time with me helping me really understand the difference between French understand the difference between French understand the difference between French and Italian luxury to Steven Wilmont who and Italian luxury to Steven Wilmont who and Italian luxury to Steven Wilmont who covers European autos at the Wall Street covers European autos at the Wall Street covers European autos at the Wall Street Journal and wrote a great piece breaking Journal and wrote a great piece breaking Journal and wrote a great piece breaking down how the weightless work at Ferrari down how the weightless work at Ferrari down how the weightless work at Ferrari that we'll link to in the show notes to that we'll link to in the show notes to that we'll link to in the show notes to our friend Doug Demiro and to Chip our friend Doug Demiro and to Chip our friend Doug Demiro and to Chip Connor who is one of the foremost most Connor who is one of the foremost most Connor who is one of the foremost most Ferrari collectors in the world and gave Ferrari collectors in the world and gave Ferrari collectors in the world and gave us great perspective on the Ferrari us great perspective on the Ferrari us great perspective on the Ferrari collector community. collector community. collector community. >> For me to Arvin Navaratnam at Worldly >> For me to Arvin Navaratnam at Worldly >> For me to Arvin Navaratnam at Worldly Partners for his great great write up on Partners for his great great write up on Partners for his great great write up on Ferrari linked in the show notes. Ferrari linked in the show notes. Ferrari linked in the show notes. Worldly Partners, for those who don't Worldly Partners, for those who don't Worldly Partners, for those who don't know, is a highly concentrated long-term know, is a highly concentrated long-term know, is a highly concentrated long-term investment firm focused on multi-deade investment firm focused on multi-deade investment firm focused on multi-deade compounding businesses. Very in line compounding businesses. Very in line compounding businesses. Very in line with Acquired's ethos. You can learn with Acquired's ethos. You can learn with Acquired's ethos. You can learn more at worldlypartners.com. more at worldlypartners.com. more at worldlypartners.com. And he's got the Ferrari right up there. And he's got the Ferrari right up there. And he's got the Ferrari right up there. to my good friend Matt Shob, Ferrari to my good friend Matt Shob, Ferrari to my good friend Matt Shob, Ferrari enthusiast and former Ferrari owner. To enthusiast and former Ferrari owner. To enthusiast and former Ferrari owner. To Brian Lum at Bailey Gford, really, Brian Lum at Bailey Gford, really, Brian Lum at Bailey Gford, really, really thoughtful investor who helped me really thoughtful investor who helped me really thoughtful investor who helped me think through all of Ferrari and really think through all of Ferrari and really think through all of Ferrari and really woke me up to the idea of the pyramid of woke me up to the idea of the pyramid of woke me up to the idea of the pyramid of infrastructure. So, thank you, Brian. to infrastructure. So, thank you, Brian. to infrastructure. So, thank you, Brian. to Neil Conen, one of the OG folks at Neil Conen, one of the OG folks at Neil Conen, one of the OG folks at Microsoft uh here in Seattle, who then Microsoft uh here in Seattle, who then Microsoft uh here in Seattle, who then would have a second career actually would have a second career actually would have a second career actually working for Ferrari. That's right. working for Ferrari. That's right. working for Ferrari. That's right. Moving to Marinelo, experiencing it from Moving to Marinelo, experiencing it from Moving to Marinelo, experiencing it from the inside, working on the F1 side of the inside, working on the F1 side of the inside, working on the F1 side of the house uh on their technology, which the house uh on their technology, which the house uh on their technology, which was really fun to get his perspective on was really fun to get his perspective on was really fun to get his perspective on how the the company evolved over the how the the company evolved over the how the the company evolved over the decades. decades. decades. >> To Mike Miller, good friend of the show, >> To Mike Miller, good friend of the show, >> To Mike Miller, good friend of the show, former editor at Wall Street Journal, former editor at Wall Street Journal, former editor at Wall Street Journal, who really helped us research and who really helped us research and who really helped us research and construct this episode. and to Benedetto construct this episode. and to Benedetto construct this episode. and to Benedetto Vignia, the CEO of Ferrari today. Thanks Vignia, the CEO of Ferrari today. Thanks Vignia, the CEO of Ferrari today. Thanks to Benadetto for taking some last minute to Benadetto for taking some last minute to Benadetto for taking some last minute uh time yesterday to run through some uh time yesterday to run through some uh time yesterday to run through some final questions I had before recording. final questions I had before recording. final questions I had before recording. To Eddie Q, who is actually a Ferrari To Eddie Q, who is actually a Ferrari To Eddie Q, who is actually a Ferrari board member and uh good friend of the board member and uh good friend of the board member and uh good friend of the show, thank you for helping us show, thank you for helping us show, thank you for helping us contextualize contextualize contextualize >> in addition to all of his work at uh you >> in addition to all of his work at uh you >> in addition to all of his work at uh you know, know, know, >> Apple fruit company. Yes. >> Apple fruit company. Yes. >> Apple fruit company. Yes. >> And lastly to Dupa for their models. >> And lastly to Dupa for their models. >> And lastly to Dupa for their models. Much much easier than digging through Much much easier than digging through Much much easier than digging through SEC filings. So thanks to Dalupa. If you SEC filings. So thanks to Dalupa. If you SEC filings. So thanks to Dalupa. If you liked this episode, go check out our liked this episode, go check out our liked this episode, go check out our episodes on Porsche, Rolex, Hermes, and episodes on Porsche, Rolex, Hermes, and episodes on Porsche, Rolex, Hermes, and LVMH. You can join the email list at LVMH. You can join the email list at LVMH. You can join the email list at acquired.fm/e. acquired.fm/e. acquired.fm/e. That's where we will send our big That's where we will send our big That's where we will send our big takeaways from each episode, past takeaways from each episode, past takeaways from each episode, past episode corrections, exclusive episode corrections, exclusive episode corrections, exclusive behind-the-scenes photos we found in the behind-the-scenes photos we found in the behind-the-scenes photos we found in the research, and it's where you can vote on research, and it's where you can vote on research, and it's where you can vote on future episode topics. Plus, we will future episode topics. Plus, we will future episode topics. Plus, we will give a little hint each time about what give a little hint each time about what give a little hint each time about what the next episode will be. David, I the next episode will be. David, I the next episode will be. David, I thought your little uh Ferris Buer nod thought your little uh Ferris Buer nod thought your little uh Ferris Buer nod last time was quite clever, so nice work last time was quite clever, so nice work last time was quite clever, so nice work with that. A lot of people got it. I with that. A lot of people got it. I with that. A lot of people got it. I thought that, man, this is going to be thought that, man, this is going to be thought that, man, this is going to be really obscure, but uh really obscure, but uh really obscure, but uh >> you're going to have to get more obscure >> you're going to have to get more obscure >> you're going to have to get more obscure in your your hints going forward. in your your hints going forward. in your your hints going forward. acquired.fm/e. And after you finish this acquired.fm/e. And after you finish this acquired.fm/e. And after you finish this episode, come talk about it with the episode, come talk about it with the episode, come talk about it with the other smart members of the acquired other smart members of the acquired other smart members of the acquired community at acquire.fm/slack. community at acquire.fm/slack. community at acquire.fm/slack. With that, listeners, we'll see you next With that, listeners, we'll see you next With that, listeners, we'll see you next time. time. time. >> We'll see you next time. >> We'll see you next time. >> We'll see you next time. >> Who got the truth? >> Who got the truth? >> Who got the truth? Is it you? Is it you? Is it you? Who got Is it you? Is it you? Is it you? Who got Is it you? Is it you? Is it you? Who got the truth? Huh?