One-on-One with Maserati USA's Jim Selwa

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So in the $100,000 plus price range where we sell Maserati how many customers could you possibly have -- 5,000 to 6,000?

MB: In the few months you've been at the helm, what sales progress has been made?

JS: Maserati is enjoying record sales growth. We're riding a hot streak. This is the first full year for the Maserati QP and production for North America is at a record level. Our stylish $110,000 Quattroporte has exceeded sales expectations. (Editors note: In February 2006, year-to-date sales for Maserati were up an industry-leading 115.3%)

MB: Things appear to looking good for Maserati, Sales are up, but you are in a price range occupied by some tough competition -- Porsche, BMW and Mercedes -- and of course Bentley and Aston Martin. Those are pretty tough challenges aren't they?

JS: One of the biggest challenges is that we are selling in a segment that hasn't been fully explored. Six months ago we had a debate about whether we'd be able to sell over 2,000 cars in the U.S. on an annual basis. This year we are on target to surpass that number.

MB: And beyond?

JS: The challenge in this segment is to determine how big it can be. The traditional approach to sales-planning doesn't work so well. You can look at all the numbers and see how big the segment has been, but it is hard to determine your target percentage and to establish volume.

MB: A planning or forecast error could be very significant, couldn't it?

JS: The biggest challenge is making sure you don't push the volume too high and broaden the product range too far down market. Look what happened to Jaguar and the X type. People that pay over $100,000 want exclusivity. BMW and Mercedes are becoming mainstream brands. A low end 7 series looks just like a 760 that you pay $100,000 for to the untrained eye. The Quattroporte has established the price point, differentiators and class leading qualities. Our main challenge is to attract the right clients and make them happy.

MB: Is the United States the single biggest market for Maserati? How many cars will you sell here in 2005? And, what is the projection for 2006?JS: Yes, North America represents over 40 percent of the worldwide volume for Maserati. In 2005, we sold 2,100 cars, about 1,550 Quattroporte's, the balance in Coupe, Spyder and GranSport models. Our sales target for 2006 is roughly the same as 2005.

MB: Has Maserati made much progress in reducing the production time and waiting list for the QP?

JS: In general terms, it takes about three to four months get a car. Most of our customers personalize their cars- hence such a time frame is necessary. On the other hand there are some dealers who order cars for stock and can probably get you a car without a wait.

MB: What's the proper inventory level for a Maserati dealer in the U.S.?JS: People who buy luxury products want to have something that's very special and unique. Once something becomes commonplace and readily available, then it falls out of favor quickly and people move on to the next "hot" thing.

MB: Isn't that a tough thing to monitor, much less control?

JS: The trick is to always stay one car short of the demand and to make sure the quality is great and the residual value stays strong. Our 47 dealers don't have a lot of cars in inventory. We try to encourage them to keep a full selection of cars as demonstrators. Currently, we require a dealer to have one of each model for test driving or at least 5 cars. A dealer selling 100 plus cars will have 10 plus in inventory. That's the only requirement for inventory.

MB: The $100,000 price range turned out to be a real sweet spot in the U.S. market for Maserati. How long before you get some competition?

JS: What we are seeing is a real market demand this type of car in the $100,000 to $200,000 range. Don't think for an instant that we are the only ones playing in that $100,000 price range. I expect other manufacturers to jump in.