Ferrari, the well-known purveyor of exotic road-going and track-bound super cars, is riding the global boom in demand for ultra-luxury vehicles. But, wealthier, more sophisticated clients has prompted old competitors to step up production and new ones to crop up.

Jean Todt has been with Ferrari since 1993, last year taking over as chief executive officer for the unit of Fiat SpA. A former race-car driver himself, the French-born executive won the Constructor's World Rally Championship as a co-driver in 1981 before heading Peugeot's racing efforts. Now, Mr. Todt is co-directing the Ferrari's ongoing racing efforts as well as its new push into developing markets like China.

In an interview punctuated by animated calls to the Formula One team back home, the Wall Street Journal Online's Matt Vella recently spoke with Mr. Todt at the company's Park Avenue showroom in New York.

THE WALL STREET JOURNAL: With some competitors considering such a move, has Ferrari considered building a four-door vehicle or other nontraditional model?

Jean Todt: No. Ferrari has never considered a four-door car. We feel have the range -- particularly with the two-plus-two, twelve-cylinder vehicles -- to satisfy our clients. It's just not in line with our philosophy to introduce a four-door car. Simply put, it's not what our customers are expecting from a Ferrari.

WSJ: Your customers really haven't been asking for anything outside of the current model line up, then?

Mr. Todt: You know we listen, we listen very carefully. And, in a way, when we see the success of our cars I think we probably listen quite well. We know what our clients want. We also feel that's a way to protect the Ferrari brand, being quite restrictive about the range of cars we produce.

WSJ: How does managing the brand in new markets like China differ from doing the same in the West?

Mr. Todt: There are many differences. Even the needs of American clients are different than the needs of European clients. You have countries like the States where Ferrari is strong and has been for many years -- today North America accounts for 30% of our sales and this year we'll sell between 1,700 and 2,000 cars -- and you also have new countries. There are also places where we're not yet as strong. In China, we've just started to develop an organization with twelve dealers, we doubled our production for China between 2006 and 2007.

WSJ: But, how are the demands of those new customers different?

Mr. Todt: The mentality is simply different. Again, the mentality in Hong Kong is different than in Shanghai or Beijing. Generally, for these customers, Ferrari is something new. They have to learn. It takes a while to learn what Ferrari is and what the mentality behind buying a Ferrari is. We need more time with them.

WSJ: How have Ferrari customers changed over the course of your tenure?

Mr. Todt: I would say we have the same kind of customer, though we have added new ones. We still have many owners who buy a Ferrari every time a new model becomes available. In the U.S., the customer has become much more sophisticated. They're not much younger, since the price is still high. About 65% are repeat buyers and 35% are new customers. Of course, we have newly important countries and regions. As I said before, Asian and Middle Eastern markets continue to become more important.

WSJ: You head Ferrari's Formula One racing efforts. Can you describe for me the significance and importance of F1 to Ferrari?

Mr. Todt: Ferrari is probably the only company that was born racing and producing grand touring cars simultaneously. And, over the years, those things have worked together. Racing is important for the development of road vehicles. There is a transfer of technology and development costs even at the level of the initial specifications of the cars, testing of the cars. Michael Schumacher tests every new development car.

For our clients, of course, Ferrari is a passion. They follow with great interest all the racing activities. You have three different types of Ferrari clients: the owners, the Ferrari fanatics which are sometimes owners as well, and the supporters. Wherever in the world you go, you see this enthusiasm. The Ferrari logo has become a symbol all over the world. The combination of racing and road cars has made the Ferrari brand one of the most important in the world.

WSJ: What do you make of the emergence of many small, independent supercar manufacturers world-wide? What does this mean for an established brand like Ferrari?

Mr. Todt: We just finished a business review and we said we must pay attention to everything that is happening in our business. I think a big mistake is not to look around you, to become presumptuous by thinking you are the best. The day you think you are the best, you start to go down. So, we must always live thinking the others could have the best potential, and that is the best stimulation.

WSJ: A Sotheby's/RM vintage Ferrari auction recently set records and, in part, highlighted the company's Ferrari Classiche service to restore classic models. How is this program and such auctions a hedge for Ferrari against growing competition?

Mr. Todt: As I was saying before, the customer is king. That applies not only to the one who is buying a car today or the one who will buy one tomorrow, but also to the one that bought one fifty years ago. Particularly now, in a world with a lot of speculation, we feel that it's always best to certify all Ferrari cars, to make a certificate of conformity, and in that way we honor our responsibility to our clients.

It's like a painting. Here we are in New York were you have the best auction houses -- Sotheby's, Philips, Christie's. If you buy a Picasso you will have a certificate of authenticity. We want to make sure our clients have the same thing.

WSJ: In an increasingly global auto industry and car market, what about Ferrari remains purely Italian and what has become more worldly?

Mr. Todt: Ferrari is just one Italian company. But, where I think Ferrari has been very good over the last years has been in the development of the specificity of the brand, the unique philosophy of the brand, the characteristics and value of the brand. And yet, we've had a very intense approach to have strong world-wide distribution. We have the culture of made in Italy, but we try adapt it to wherever we can. Ferrari is made in Italy, but for the world.

Source = Wall Street Journal