New Ferrari, Maserati outlet against odds

One of the world's largest Ferrari and Maserati dealerships has opened in Melbourne.

The new Zagame dealership is in Richmond's busy Swan Street, standing three stories high and taking up 10,000 square metres.

Richmond's showroom is the brands' third 'showcase dealership' to open Down Under in three years. The new Zagame operation follows outlets built in Brisbane and Perth. Sydney will see a new bespoke facility open in the second quarter of next year.

Nearby high-end outlets to the Richmond operation include a new Audi dealership in the same suburb, and Porsche Cars Australia's headquarters and dealership in Collingwood.

The impressive showroom, designed by Melbourne architect David Earle, represents a $30 million investment.

Though "not a fantastic time for prestige brands to try to win customers," Bobby Zagame, managing director of Zagame Ferrari and Maserati, believes the investment in the facilities will prove worthwhile in the future.

"The dealership rates as one of the largest in the world, which is a significant vote of confidence in the economy of Melbourne and Victoria. We have ensured that it contains the technology to match that found in cars that carry the Ferrari and Maserati badge," Zagame told the Carsales Network.

Ferrari's production at factory level has increased and "there's plenty of product coming," says Zagame.

Sales neared 1100 in the Asia Pacific region including Australia and New Zealand for the 2006-07 period; up 47 per cent.

"Asia is better positioned than in the past," says Zagame.

Director for European Automotive Imports (EAI) Neville Crichton admits "it's bloody hard at the moment" for prestige brands.

"If you read the papers today you wouldn't be building these kinds of facilities," he says.

But with backorders for both the Ferrari and Maserati brands he's confident there are still old and new customers to appease. Aside from "dozens of clients" inclined to keep their old cars and buy new ones every few years, he says the company is finding "new people coming to the brands" including Porsche and Mercedes-Benz owners.

The release of models such as the new folding hardtop-equipped Ferrari California will also attract a "different, wider audience," says Crichton.

The Zagame Richmond dealership can display up to 30 Ferrari and Maserati models and includes nine service bays in full view from the showroom. Owners can use the showroom's lounge and business facilities while they wait and watch expert technicians service their car.

A further 50 cars can be stored at the premises for either short or long-term, for around $800 a month. Vehicles are maintained during the stay, including keeping batteries charged and they are washed and covered.

The Zagame garage is the closest to Melbourne's CBD of any vehicle storage facility, according to the host, and is open to owners of other brands.

A large section of the showroom is dedicated to Ferrari and Maserati merchandise. Unlike the standalone Ferrari Shop outlets, the dealership is the first Australian branch of the 'Ferrari Dealer Select Merchant' articles including F1 and owner-specific offerings.

Throughout the showroom, the brands' heritage is recalled with an array of racing images and historic models on display.

Starring at the dealership's opening was the new Ferrari California that was on display at the Sydney motor show this month.

The California model, featuring Ferarri's first folding hardtop roof and new direct-injected 4.3-litre V8, has already attracted nearly 200 orders from Australian and New Zealand customers. Around 10 of those orders were made during the week of Sydney's motor show alone, says Crichton.

He says the brand is withstanding troubled economic times through the "remarkable abilities of its cars and the intense passion that Ferrari engenders".

Customers have some time yet to weather the storm. The first Ferrari California will not be delivered until mid-2009 and EAI suggests the 200-strong order equates to an 18-month long waiting list -- about the time economists suggest finances will return to normal.

Crichton says that while customers rarely ask for a return on a deposit some are using the option to take delivery -- sometimes months -- later, and that the company can identify and weed-out buyers wanting to 'flip' a vehicle shortly after the delivery date.

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