Aircooled VW South Africa

Ferrari drops Maranello factory after 60 years for Babelegi, South Africa on local fiscal attractions

Ferrari will close it's Maranello factory and relocate its operation to Babelegi in South Africa's Northwest Province the company confirmed today.

Ferrari, which has built cars in Maranello, Italy since 1946, will shift away from it's traditional heartland over the next 18 months to take full advantage of the fiscal and profit attractions and benefits offered by the South African government's new Automotive Industry Programme.

A short communique stated: "In the interests of future profitability, the company will cease operations at Maranello from August 2011. Production will be resumed at Babelegi in the Northwest Province of South Africa. Further details will be advised shortly."

The move set to send shock waves through the world motor industry is also believed to be the first of various similar such moves as carmakers search relief from the ongoing recessionary conditions in Europe and the US - a phenomenon made increasingly appropriate through the ever-strengthening rand versus the Euro and US dollar among other currencies.

Ferrari is also understood to have recognised the advantages held by the former South African arms industry and following close talks with Denel and Kentron, it is believed that an advanced super-hybrid system to aid future supercar performance while ensuring unheard of gains in fuel consumption and carbon dioxide emissions, will be built in collaboration with the former arms specialists. The Ferrari-Denel system will be targeted at other carmakers looking at taking advantage of it's extreme advantages

Ferrari has commented further on it's planned move to Babelegi, South Africa from Maranello in Italy.

"This secret plan in collaboration with the South African government and NAAMSA has been progressing since 2005," spokesman Primo d'Aprile elaborated. "There are various important advantages and collaborations that have contributed to our decision. "We will confirm full details in due course," d'Aprile added.

One of the catalysts of the Ferrari move to Babelegi besides the proximity to its new partners Denel, is believed to be a new collaboration with Puma Sports Cars, itself based in Babelegi.

Puma is known to want to base its future cars on something other than a Volkswagen Beetle and 50% shareholder Puma Cyril Ramaphosa, who is also associated with Ferrari's South African operation is understood to have been instrumental in negotiations.

Sources suggest the next Puma will be based on the Ferrari 458 due for Babelegi production from June 2011. D'Aprile refused to comment further on speculation surrounding Ferrari and Puma.