<ul class="summary-list"><li><keyword id="16120" type="COMPANY" weightage="60" keywordseo="Ferrari">Ferrari</keyword> recently unveiled the Portofino M in an online-only event that was a first for the Italian automaker and a requirement of the coronavirus pandemic.</li><li>The Portofino M is the latest iteration of Ferrari's entry-level GT car — the "M" stands for <em>Modificata.</em></li><li>The new Portofino enjoys a notable bump up in the output from its twin-turbocharged V8 engine: 612 horsepower, from 591.</li><li>There's also a new drive mode — Race — and a new eight-speed gearbox coming to the drop-top Prancing Horse, whose design has been just slightly tweaked.</li></ul><p>Ferrari took the unprecedented step of revealing its Portofino M entirely online last week, a consequence of the global coronavirus pandemic tamping down some of the usual autumn hooplas around new vehicles.</p><p>Undaunted, Ferrari said that circumstances meant the Portofino M would symbolize rediscovery for Maranello. And while the Portofino M isn't a radical departure for the Prancing Horse, the entry-level, grand-touring convertible has been upgraded in some notable areas.</p><div type="image" title="Ferrari Portofino M" height="1125" width="2000" msid="78206001" hostid="261"></div><p>The big one is a bump up in horsepower for the 3.9-liter, twin-turbocharged V8, to 612 horsepower from 591 horsepower.</p><p>The M-for-<em>modificata</em> (meaning "modified") action continues with a new eight-speed gearbox and the additional of Race mode to the famous manettino on the steering wheel. Ferrari said in a statement that this is a first for one of its GT car, and the addition is intended to provide owners with maximum driving excitement.</p><p>The eight-speed is notable because Ferrari said it enhances fuel economy, and the Italian automaker has been busy positioning its lineup to be better able to deal with future regulations that might challenge the brand's embrace of horsepower — and its disregard for how much fill-ups are costing owners, or for whether the company is future-proofing its machines against global warming.</p><div type="image" title="Ferrari Portofino M" height="1125" width="2000" msid="78206003" hostid="261"></div><p>Design-wise, Ferrari said the grille had been reworked and a new set of vents had been added to the Portofino M's flanks, extending back from the front wheel arches.</p><p>Ferrari also stressed that the retractable hardtop means the Portofino M can live a dual life as a convertible and a coupé.</p><div type="image" title="Ferrari Portofino M" height="1123" width="2000" msid="78206007" hostid="261"></div><p>Inside, the Portofino M expresses all the luxury you'd expect from a car whose price tag should tip past $200,000 when it goes on sale in Europe and the US next year.</p><p>But it also continues Ferrari's endorsement of modern technology, most obviously in the 10.3-inch infotainment screen mounted in the middle of the center stack. There are smaller screens on either side of the instrument cluster's large tachometer. </p><p>But Ferrari designers were careful to preserve a sense of openness in the Portofino M's cockpit, and the dashboard has been organized as a multi-level affair. In proper Ferrari fashion, the overall number of buttons and knobs have been kept to a minimum.</p><p>Highlighting innovation for the Portofino M's unveiling, Ferrari seems to be setting up the world for some big new things as it heads toward the launch of its first SUV in the coming years, as well as a possible all-electric supercar.</p>

The new Ferrari Portofino M is a more hardcore version of the automaker's stylish grand tourer

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59b826039803c578288b48cd-2000/170867francoforteunveilingportofino027.jpg" border="0" alt="Ferrari Portofino Frankfurt Motor Show 2017" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p><p class="caption">The Ferrari Portofino revealed.</p></div><p></p></div></div></p><ul class="summary-list"><li><a href="https://markets.businessinsider.com/stocks/ferrari-stock">Ferrari</a> beat analysts expectations for first-quarter earnings.</li><li>The carmaker also stuck to its 2018 financial targets.</li></ul><p><br />Italian luxury carmaker Ferrari confirmed its full-year targets after core earnings rose 14 in the first quarter, driven by a strong performance of its Portofino model.</p><p>Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at 311 million euros ($348 million) in the January-March period, Ferrari said on Tuesday.</p><p>That is above an average forecast of 284 million euros based on a Reuters poll of analysts.</p><p>Ferrari shares rose as much as 4.7 percent on the results.</p><p>Ferrari has been a highlight of the auto industry since its 2015 IPO and spinoff from former parent, Fiat Chrysler Automobiles. Shares are up 163%, versus a flat or declining performance from other carmakers.</p><p>(Reuters reporting by Giulio Piovaccari, editing by Valentina Za.)</p>

Ferrari beats on first-quarter earnings, stock surges

<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5dcd97d93afd377600513f05-2000/ferrariroma07.jpg" border="0" alt="Ferrari Roma" data-mce-source="Ferrari" /></div></div></div></p><ul class="summary-list"><li>The <a href="https://www.businessinsider.com/category/ferrari">Ferrari</a> Roma is an ultra-stylish coupé with a potent V8 engine and a new eight-speed, dual-clutch gearbox.</li><li>The <a href="https://markets.businessinsider.com/stocks/ferrari-stock">Ferrari</a> Roma slots above the Portofino in Maranello's lineup.</li><li>The Roma joins the 488-replacing <a href="https://www.businessinsider.com/ferrari-f8-tributo-most-powerful-v8-supercar-f40-spoiler-2019-2">F8 Tributo</a> and Spider, as well as the 812 GTS (<a href="https://www.businessinsider.com/ferrari-812-gts-first-convertible-v12-ferrari-in-50-years-2019-9">Ferrari's first V12 drop-top in 50 years</a>) and the <a href="https://www.businessinsider.com/ferrari-reveals-the-sf90-stradale-most-powerful-supercar-ever-2019-5">hybrid SF90 Stradale</a> in the prancing-horse stable for 2019.</li><li>The car is a classy GT, with a nominal backseat.</li><li><strong><a href="http://newsletter.businessinsider.com/join/4np/shiftinggears">Sign up for Business Insider's transportation newsletter, Shifting Gears, to get more stories like this in your inbox.</a></strong></li><li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</strong></li></ul><p>Ferrari is on a tear. We've seen four new models in 2019, and as the year closes out, we have a fifth: the Ferrari Roma, unveiled on Thursday in, naturally, Rome.</p><p>The Roma is a what Ferrari is calling a "2+ coupé," meaning it has some space behind the front seats but is effectively a two-seater.</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5dcd978c7eece57c373162e3-2000/190398-car-ferrari-roma.jpg" border="0" alt="Ferrari Roma" data-mce-source="Ferrari" /></div></div></div></p><p>The car is a suave grand-tourer, with a 611-horsepower, twin-turbo V8 under the hood, displacing 3.9 liters and routing the punch through an eight-speed, dual-clutch gearbox. (The Roma slots in above the slightly less powerful Portofino in Maranello's lineup.)</p><p>The car is indeed a stunner. "Its beautifully harmonious proportions and elegantly pure, balanced volumes are very much in line with the Ferrari mid-front-engined grand touring tradition of which the 250 GT Berlinetta Lusso and 250 GT 2+2 are the most iconic examples, and from which the car takes its inspiration," Ferrari said in a statement.</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5dcd98923afd37770271079d-2000/190401-car-ferrari-roma.jpg" border="0" alt="Ferrari Roma" data-mce-source="Ferrari" /></div></div></div></p><p>The Roma joins the 488-replacing <a href="https://www.businessinsider.com/ferrari-f8-tributo-most-powerful-v8-supercar-f40-spoiler-2019-2">F8 Tributo</a> and Spider, as well as the 812 GTS (<a href="https://www.businessinsider.com/ferrari-812-gts-first-convertible-v12-ferrari-in-50-years-2019-9">Ferrari's first V12 drop-top in 50 years</a>) and the <a href="https://www.businessinsider.com/ferrari-reveals-the-sf90-stradale-most-powerful-supercar-ever-2019-5">hybrid SF90 Stradale</a> in the prancing-horse stable for 2019.</p><p>Ferrari said that the Roma embodies a fresh approach to chassis design, with 70% of the parts new to the vehicle. The Roma is also a lightweight package, at just 3,460 pounds. The o-60 mph dash happens in just north of three seconds, and the top speed is nearly 200 mph.</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5dcd978c3afd377595107257-2000/190400-car-ferrari-roma.jpg" border="0" alt="Ferrari Roma" data-mce-source="Ferrari" /></div></div></div></p><p>According to Ferrari, for the cabin, "the Ferrari Styling Centre designers developed a new formal approach that involved the creation of two separate cells, one each for driver and passenger, in an evolution of the dual cockpit concept that embraces the entire cabin rather than just the dashboard."</p><p>This is an interesting evolution, as it creates an integrated, flowing interior, but at the expensive of some of the airy quality that characterized previous models. The instruments and infotainment are also comprehensively digital and far more of a factor than on pre-Roma Ferraris.</p><p>Ferrari didn't reveal pricing, but we suspect it could be in the $250,000 ballpark. Competitors should be the Aston Martin Vantage and the <a href="https://www.businessinsider.com/mercedes-amg-gt-c-review-photos-2018-12">Mercedes-AMG GT.</a></p>

Ferrari just unveiled its new Roma coupe - and it's a stunner

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d441ad0100a24202a570cea-1485/ferrari 812 superfast-5594.jpg" border="0" alt="Ferrari 812 Superfast 5594" data-mce-source="Business Insider/Jessica Tyler" /><p class="source"><span>Business Insider/Jessica Tyler</span></p><p class="caption">The Ferrari 812 Superfast.</p></div><p></p></div></div></p><ul class="summary-list"><li><a href="https://markets.businessinsider.com/stocks/race-stock">Ferrari</a> posted a solid third quarter for earnings and raised its outlook for the full year.</li><li>Both its Portofino and 812 Superfast models aided in the result.</li><li>Shares of Ferrari moves up both in Milan and New York.</li></ul><p><br />Ferrari has been on a tear, and even its No. 2 standing behind Ferrari in Formula One can't undermine the company's ongoing financial performance.</p><p>On Monday, Ferrari raised its 2019 outlook after strong sales of its Portofino and 812 Superfast sportscars produced what it called "solid" third quarter results, <a href="https://www.reuters.com/article/us-ferrari-results/ferrari-raises-2019-outlook-after-solid-third-quarter-results-shares-jump-idUSKBN1XE16I">Reuters reported</a>.</p><p>The Italian luxury carmaker said that pre-EBITA adjusted earnings would be around 1.27 billion euros ($1.42 billion) this year, topping a previous forecast of 1.2-1.25 billion euros, Reuters reported.</p><p>Reuters added that "Milan-listed shares in Ferrari rose by more than 6% to a new all-time high of 153.70 euros after its results."</p><p>On the NYSE, the stock rose 6% pre-market, to $171.</p><p>(Reuters reporting by Giulio Piovaccari; editing by Alexander Smith)</p><p> </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/only-10-people-able-buy-ferraris-brand-new-supercar-japan-j50-2016-12">Only 10 people will be able to buy Ferrari's brand new supercar</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/WtP52dWv-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Ferrari posts strong 3rd quarter earnings and ups guidance for 2019

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5bc5ef42c1aa130f7e3a20d9-1778/ferrari 812 superfast-5582.jpg" border="0" alt="Ferrari 812 Superfast 5582" data-mce-source="Business Insider/Jessica Tyler" /><p class="source"><span>Business Insider/Jessica Tyler</span></p><p class="caption">The 812 Superfast.</p></div><p></p></div></div></p><ul class="summary-list"><li><a href="https://markets.businessinsider.com/stocks/race-stock">Ferrari</a> posted an improve Q2 profits, but the markets were looking for a bump in 2019 guidance for the second half.</li><li>Shares plunged in Milan, but they declined only modestly in New York on the results.</li><li>The profits were driven by strong sales of the Portofino and 812 Superfast models.</li></ul><p><br />Ferrari has been posting strong financial results for years, but the markets want more.</p><p>Shares in Ferrari went into reverse on Friday as the Italian luxury carmaker failed to lift its guidance for 2019 despite strong results in the first part of the year.</p><p>Releasing its second quarter results, the company confirmed that it was on track for the higher end of the guidance range for all relevant figures. However, that left some disappointed that there was no upgrade signaled.</p><p>Trading in Milan-listed shares was halted for excessive declines after a 6.9% drop and they were down 3.95% by 1024 GMT.</p><p>For 2019, Ferrari forecasts its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to rise around 10 percent to between 1.2-1.25 billion euros. Sales are seen growing more than 3 percent to more than 3.5 billion euros.</p><p>In the second quarter, core earnings rose 8.7%, led by robust deliveries of its Portofino and 812 Superfast models. Those models are revamped versions of the California T and F12 Berlinetta. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59b829a338d20d20008b4fb2-2000/170863francoforteunveilingportofino018.jpg" border="0" alt="Ferrari Portofino" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p><p class="caption">The Portofino reveal.</p></div><p></p></div></div></p><p>Adjusted EBITDA came at 314 million euros ($348 million) in the April-June period, in line with analyst expectations, according to a Reuters survey.</p><p>On the New York Stock Exchange, Ferrari's stock slid a little over 1% to $160 in pre-market trading Friday. Shares are up almost 65% year-to-day. </p><p>Ferrari's financial performance has been notable since the carmaker's 2015 IPO, making it one of the best names in the sector. Under late CEO Sergio Marchionne, who engineered the marques spinoff from Fiat Chrysler Automobiles, Ferrari move to expand sales, design an SUV, and even commit to an all-electric supercar.</p><p>Ferrari's position is unique in that the company is valued like a luxury-goods purveyor, such as Hermès, while also operating one of the world's most successful Formula One racing teams.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d4419be100a24187529cae9-1460/screen shot 2019-08-02 at 65855 am.png" border="0" alt="RACE CHART" data-mce-source="Markets Insider" /><p class="source"><span>Markets Insider</span></p></div><p></p></div></div></p><p>(Reuters reporting by Giulio Piovaccari; additional reporting by Giancarlo Navach; editing by Keith Weir.)</p>     <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/ferrari-flying-car-at-drake-and-migos-concert-tour-2018-11">This flying car is a replica of Drake's own $3.5 million Ferrari - here's how his team got it to float above audiences</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/iCMwVs5h-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Ferrari slides despite improved earnings after the supercar maker declines to raise guidance

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/544133e36bb3f7b63c6dbf38-1200/457111148.jpg" alt="Ferrari-F1" data-mce-source="Clive Mason/Getty Images" /><p class="source"><span>Clive Mason/Getty Images</span></p><p class="caption">Live to race - not to make Wall Street money.</p></div><p></p></div></div></strong></p><ul><li><strong>Morgan Stanley analyst Adam Jonas thinks Ferrari needs to go electric to survive.</strong></li><li><strong>But selling cars to survive so it can sell more cars isn't what Ferrari is all about.</strong></li><li><strong>Ferrari exists to build race cars first, road cars second.</strong></li></ul><p>Morgan Stanley auto analyst Adam Jonas is to be commended for pushing an investment thesis on the future of mobility so out-there that's it's difficult for the rest of Wall Street to keep up.</p><p>But sometimes Jonas pushes too far, as he did on Thursday in a research note about Ferrari and the prospects for the exotic Italian automaker switching from gas engines, with their succulent Ferrari scream, to all-electric powertrains.</p><p>Ferrari has consistently dodged the question of whether it will someday make an SUV, but as of late, CEO Sergio Marchionne has been toying with queries about whether Ferrari will develop hybrid engines beyond what it already does with its wildly expensive hypercars.</p><p>Jonas raises a thornier conundrum:</p><blockquote><p>In our <keyword id="6356002" type="ORGANIZATION" weightage="100" keywordseo="opinion">opinion</keyword>, there are a number of regulatory paths that could present a serious impediment to the manufacturers of all internal combustion powered auto firms 1 to 2 engineering cycles in the future. While a Ferrari may be designed for performance on a test track or in the Chianti hills, some folks like to go for a leisurely spin around Belgravia, Madrid, Munich, Shanghai, Hong Kong ... Los Angeles ... even Mountain View or San Francisco. You may have seen these folks, or perhaps you're lucky enough to even be one of them. Will the legal operation of Ferrari be grandfathered because of its exotic or artistic qualities?</p></blockquote><p>This is worth considering, if only as an object lesson in how investment-bank analysts have a confused understanding of why Ferrari even exists. </p><h2>What Ferrari is really all about</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/573a179152bcd020008c3278-1388/ferrari 488gtb-40.jpg" alt="Ferrari 488GTB 40" data-mce-source="Hollis Johnson" /><p class="source"><span>Hollis Johnson</span></p><p class="caption">The Ferrari 488.</p></div><p></p></div></div></p><p>It's understandable to see why some analysts are confused about how Ferrari's business works. Afterall, <span>Ferrari has surged mightily since its 2015 IPO. The stock is up 111% over the past 12 months and demand for its road cars is what's propelling that story.</span></p><p>But Ferrari only sells cars to fund its racing program. That's the way it has always been, since Enzo Ferrari, a former race-car driver, decided to create something called the Scuderia Ferrari - a race-car-making shop. Racing is expensive, so Ferrari started building "normal" cars to fund the really passionate side of the organization. </p><p>I know that might sounds as if the Ferrari "client," as he or she is called, isn't the first thing on Ferrari's mind. But that's the reality - and the clients are happy to have it that way.</p><p>Fast forward to today and Ferrari's focus remains Formula One, the most prestigious competitive series in the world. Every single car Ferrari sells, from the entry level Portofino to the top-of-the-pile La Ferrari, supports the racing effort. In fact, you could argue that everybody who buys Ferrari stock also supports the racing effort.</p><p>And the racing effort is almost literally a top-secret black box about which investors know nothing. At the Ferrari factory in Maranello, Italy, there is a huge, windowless red chamber - OK, it's a red box - where the F1 technologies are developed. It's as good a symbol as I can think of for Ferrari's true mindset.</p><p>Racing is very much about sound for fans, and while there is an all-electric series, Formula E, you go to see Ferraris race to listen to the roar. When Ferrari made a big switch with its 488 supercar to a turbocharged V8 motor, the carmaker had to address in the first order whether the new machine would sound right.</p><h2>Ferraris are fast enough</h2><p>Jonas then makes a second classic error when looking at Ferrari, comparing it to the Tesla Model S in terms of acceleration.</p><p>"The Tesla Model S P100D accelerates from 0 to 60mph in 2.28 seconds per Motor Trend," he wrote. "By comparison, the $1.4 million LaFerrari accomplishes the same feat in 2.4 seconds. While acceleration isn't the only measure of a sports car's performance, it is a factor that matters to some people."</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57d6d009077dcc1c008b5151-2120/tesla model s new .png" alt="Tesla Model S" data-mce-source="Tesla" /><p class="source"><span>Tesla</span></p><p class="caption">Nice car, but it's not a Ferrari.</p></div><p></p></div></div></p><p>Actually, it matters not at all to Ferrari owners. Nobody who owns a Ferrari thinks it isn't fast enough. They don't care that there might be faster cars. The Ferrari is a Ferrari: gorgeous, ferocious, thrilling to drive. </p><p>Jonas thinks he's being stoutly contrarian in arguing that Ferrari must be seriously thinking about going electric, despite an all-electric future being pretty speculative at this point (hardly beside the point, with a $100 price target of Ferrari and an "Overweight" rating - the stock is now trading at $114 -  Jonas appears to be building a bear case).</p><p>But the thing about Ferrari is that, as the poet wrote, nothing gold can stay. Ferrari is Ferrari because of racing, not because people need amazing red Italian sports cars to drive around in. Perhaps Ferrari will race electric cars one day. But I doubt it. And then we won't have Ferrari's anymore.</p><p>What Jonas and all of Wall Street fails to understand is that Ferrari is <em>art, </em>at many levels. And art doesn't care to survive just so investors can make money no matter what happens.</p><p>An all-electric world without Ferrari? It might sound shocking, but don't think that the carmaker will just do whatever it takes to stay alive. Sometimes the end comes, and you go out on top.</p><p class="tagline">Get the latest Tesla stock price<a href="http://markets.businessinsider.com/stock/TSLA-Quote"> <strong>here.</strong></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/cheapest-ferrari-california-luxury-cars-2016-8">The cheapest new Ferrari money can buy is absolutely gorgeous</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/XFxcrqLl-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Wall Street doesn't understand Ferrari's business

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d2f388b699e5c292f62a0f9-1500/brazil phony ferraris .jpg" border="0" alt="Brazil Phony Ferraris " data-mce-source="Itajai Civil Police" data-mce-caption="One of the fake Lamborghinis seized by the police during the raid." data-link="http://www.apimages.com/metadata/Index/Brazil-Phony-Ferraris/53215a46409948ec8c7e1c64385df0fa/6/0" /><p class="source"><span><a href="http://www.apimages.com/metadata/Index/Brazil-Phony-Ferraris/53215a46409948ec8c7e1c64385df0fa/6/0">Itajai Civil Police</a></span></p><p class="caption">One of the fake Lamborghinis seized by the police during the raid.</p></div><p></p></div></div></p><ul class="summary-list"><li>Police in Brazil shut down a factory making fake Lamborghinis and Ferraris on Monday.</li><li>The sham cars were being sold for 1/5th the price of the real exotic supercars.</li><li>The shop was offering the cars on social media for $45,000 to $60,000. The Italian automakers notified police.</li></ul><ul class="summary-list"><li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</strong></li></ul><p>Brazilian police have shut down a covert factory making knock-off Ferraris and Lamborghinis on Monday, following complaints from the two Italian automakers.</p><p>Police arrested a father and son duo who owned the workshop in Santa Catarina, about 840 miles southwest of Rio de Janeiro, according to the <a href="https://www.apnews.com/b8d13c8fb66b46f9b3512cfa96bed6d4">Associated Press</a>.</p><p>The shop was offering the cars on social media for $45,000 to $60,000, which is far less than what the genuine exotic supercars cost. The least-expensive 2019 Ferrari model is the <a href="https://www.businessinsider.com/ferrari-portofino-convertible-gt-unveiled-2017-8">Portofino</a> with a MSRP of $214,533 and the Lamborghini <a href="https://www.businessinsider.com/lamborghini-urus-review-features-photos-2019-5">Urus</a> has a base price $200,000.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/lamborghini-urus-review-features-photos-2019-5">I drove a $250,000 Lamborghini Urus to see if the radical SUV lives up to the hype - here's the verdict</a></em></p><p>The sleek vehicles looked similar to the authentic ones and included badges and seats embroidered with the car companies' logos.</p><p>Police delegate Angelo Fragelli told <a href="https://www1.folha.uol.com.br/cotidiano/2019/07/policia-fecha-oficina-em-sc-que-falsificava-carros-da-ferrari-e-lamborghini.shtml">Folha de São Paulo</a> that the mechanical parts came from old cars, such as the engine of a Chevrolet Omega. Authorities are still looking into how many sham vehicles were made. </p><p>The raid comes just a few weeks after an Italian court recognized the Ferrari 250 GTO as a work of art, protecting it from reproductions, according to <a href="https://www.telegraph.co.uk/news/2019/06/24/iconic-ferrari-recognised-work-art-bid-protect-worlds-valuable/">The Telegraph</a>. Only a few dozen of those cars were made during a two-year period in the early 1960s. One Ferrari 250 GTO sold at auction in 2018 for $48 million.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/boeing-737-max-airplane-crash-incidents-recover-lawsuits-scrutiny-2019-7">Will Boeing recover from the 737 Max crisis?</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/rHzNUlFN-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

A body shop in Brazil got busted for building knock-off Lamborghinis and Ferraris that look surprisingly real.

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/599d8517289cc61e008b4947-1638/170577-ferrari-portofino.jpg" alt="Ferrari Portofino" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p><p class="caption">The new Ferrari Portofino.</p></div><p></p></div></div>On Wednesday, Ferrari unveiled the latest addition to its lineup, the Portofino convertible grand tourer. The Portofino is set to replace the <a href="http://www.businessinsider.com/this-ferrari-california-t-first-drive-2017-7" target="_blank" rel="noopener noreferrer">California T as Ferrari's most affordable production model</a>.</p><p>The new Portofino is powered by an updated version of Ferrari's award-winning 3.9-liter, twin-turbocharged V8 which is also found in the<a href="http://www.businessinsider.com/ferrari-488-gtb-review-2016-5" target="_blank" rel="noopener noreferrer"> 488 </a>and the current Cali T.</p><p>Improvements include new pistons and con rods along with redesigned intake and exhaust systems.</p><p>In addition, Ferrari's engine management software has been recalibrated to boost acceleration and improve fuel economy over the Cali T.</p><p>With these upgrades, the V8 now produces 592 horsepower, up 40 horses from the car it replaces. The Portofino is also expected to feature a seven-speed twin-clutch gearbox.</p><p>According to Ferrari, the Portofino is good for a 0-62 mph run of 3.5 seconds and a top speed of more than 199 mph.</p><p>The four-seat Portofino is built on an all-new chassis that's lighter and offers more rigidity than the California.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/599d8c59289cc61f008b49a7-1881/170576-ferrari-portofino.jpg" alt="Ferrari Portofino" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p></div><p></p></div></div>Unlike the California and the Cali T, famed Italian design house Pininfarina played no role in the styling of the Portofino. Instead, the new drop top's looks are a collaboration between Ferrari's in-house design and aerodynamics teams.</p><p>The Cali T's sculpted angular lines have been replaced by a new curvier aesthetic. The new front end treatment and air intakes are designed to improve the Portofino's overall aerodynamic efficiency.</p><p>For the Portofino's occupants, Ferrari's has equipped the car with a new 10.2-inch infotainment screen and an upgraded climate control system with improved performance for both top-up and top-down driving. In addition, the Portofino has a new steering wheel, redesigned 18-way adjustable front seats, and a new wind deflector that reduces cabin noise and allows 30% less air flow into the car.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/599d8e2f614d791b008b4a46-1885/170580-ferrari-portofino.jpg" alt="Ferrari Portofino" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p></div><p></p></div></div>The Ferrari California debuted at the 2008 Paris Motor Show to great fanfare. Six years later, Ferrari introduced the second generation California T at the 2014 Geneva Motor Show.</p><p>The Ferrari Portofino will make its world debut at the 2017 Frankfurt Motor Show next month.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/599d8f7e289cc621008b49fe-1885/170581-ferrari-portofino1.jpg" alt="Ferrari Portofino" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p></div><p></p></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/only-10-people-able-buy-ferraris-brand-new-supercar-japan-j50-2016-12">Only 10 people will be able to buy Ferrari's brand new supercar</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/WtP52dWv-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Ferrari has unleashed its newest convertible sports car

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59b829a338d20d20008b4fb2-2000/170863francoforteunveilingportofino018.jpg" alt="Ferrari Portofino" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p></div><p></p></div></div>The reveals are rolling in at the 2017 Frankfurt Motor Show, and two of them showcase what's happening at the top of the luxury game.</p><p>Ferrari pulled the cover off its Portofino, the replacement for the entry-level California T. </p><div title="Page 1"><div><div><p><span>"The new car, which takes its name, Portofino, from one of the most charming villages on the Italian Riviera, an eponym for stylish elegance, is the most versatile model in the range," the automaker said in a statement.</span></p><p><span>"A Ferrari designed to be driven every day that also effortlessly converts from an authentic 'berlinetta' coupé to a drop-top capable of delivering a unique Ferrari soundtrack and superb driving pleasure even in day-to-day situations."</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59b826039803c578288b48cd-2000/170867francoforteunveilingportofino027.jpg" alt="Ferrari Portofino Frankfurt Motor Show 2017" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p><p class="caption">The newest Ferrari.</p></div><p></p></div></div></span></p><p><span>Meanwhile, Bentley revealed the Continental GT, like the Portofino a two-door, but with a massive W12 engine.</span></p><p><span>"When Bentley launched the original Continental GT in 2003 it established an entirely new market segment - the modern luxury grand tourer," Bentley CEO Wolfgang Dürheimer said in Frankfurt. </span></p><p><span>"Today, I'm convinced that we are redefining this segment again. It is an honour to replace a car that has - for 14 years - been the benchmark against which all other grand tourers are judged."</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59b8260338d20d3c098b4db4-2000/new continental gt debuts in frankfurt01.jpg" alt="Bentley Continental GT Frankfurt Motor Show 2017" data-mce-source="Bentley" /><p class="source"><span>Bentley</span></p><p class="caption">And the updated Bentley.</p></div><p></p></div></div></span><span>Both cars look pretty sharp. I took the Cali T on a road trip a few years ago and was impressed. I'm looking forward to getting behind the wheel of the Portofino. In 2014, I also spent a weekend with the Continental GT, and it's my favorite Bentley.</span></p><p><span>In autoland, however, both the Ferrari and the Bentley occupy a shrinking niche: as Dürheimer said, the "luxury grand tourer" - a big car with a nominal back seat and a big motor up front, designed to transport well-heeled couples from an urban enclave to a vacation escape.</span></p><p><span>Check out the Maserati Ghibli from the late 1960s and early '70s. It has a long hood, sleek lines, and room for two people and their beautiful luggage.</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/547de41aecad04d11a6044d4-2400/7339258686032659d3ffo.jpg" alt="Maserati Ghibli" data-mce-source="Flickr/PyntoFmyld" data-link="https://www.flickr.com/photos/pyntofmyld/7339258686/in/photolist-mEHWPU-mEGsaR-mEG8FP-mEGs86-mEHWo3-58zJcB-58DTAW-cRdQLj-cRcDCL-cbxBUS-cK6Tnf-p3DngG-p3CUv7-mEHWG9-78eH8t-o3xkg5-7mhKXZ-7mmE5m-nPZP4c-ooNEqK-cK6QtE-cK6Wwd-cK6PQN-cK6TFq-6wD4U7-kqJciz-cK6VPu-dRHQUA-oEh5Zn-oWKhVQ-oEh5Fr-dMgwPG-fMA3j7-dKR5WW-ea1SxK-eaxawx-6wD4xE-obzqYb-ofoXFt-o7mjAu-o7tqaT-o7tpSt-oPSMnS-oRDccX-ozpFpa-ozpCGg-ozqad5-oRUDS4-ozpEjV-oRCGD4" /><p class="source"><span><a href="https://www.flickr.com/photos/pyntofmyld/7339258686/in/photolist-mEHWPU-mEGsaR-mEG8FP-mEGs86-mEHWo3-58zJcB-58DTAW-cRdQLj-cRcDCL-cbxBUS-cK6Tnf-p3DngG-p3CUv7-mEHWG9-78eH8t-o3xkg5-7mhKXZ-7mmE5m-nPZP4c-ooNEqK-cK6QtE-cK6Wwd-cK6PQN-cK6TFq-6wD4U7-kqJciz-cK6VPu-dRHQUA-oEh5Zn-oWKhVQ-oEh5Fr-dMgwPG-fMA3j7-dKR5WW-ea1SxK-eaxawx-6wD4xE-obzqYb-ofoXFt-o7mjAu-o7tqaT-o7tpSt-oPSMnS-oRDccX-ozpFpa-ozpCGg-ozqad5-oRUDS4-ozpEjV-oRCGD4">Flickr/PyntoFmyld</a></span></p><p class="caption">Gorgeous.</p></div><p></p></div></div></span></p><p><span>There's obviously something of a market for this type of car, and frankly, I'm a sucker for them. Ferrari certainly needs to keep on selling Portofinos, just as it had to move Cali T's to get customers into the brand and increase sales toward 10,000 worldwide.</span></p><p><span>Bentley is a bit different in that all of its cars are quite over-the-top, so it can get away with selling a mega-motored two door that swaddles occupants in luxury.</span></p><p><span>But neither car is an SUV, and that's where the global market is heading, especially in the luxury realm. Bentley introduced the Bentayga SUV last year, and there's continual speculation that Ferrari will join former corporate sibling Maserati in creating an SUV (the Maserati Levante also arrived last year).</span></p><p><span>Are magnificent GT cars not long for the world? Maybe. But for now, we can enjoy two of the finest examples.</span></p></div></div></div>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/only-10-people-able-buy-ferraris-brand-new-supercar-japan-j50-2016-12">Only 10 people will be able to buy Ferrari's brand new supercar</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/WtP52dWv-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Two of the best new cars at the Frankfurt Motor Show are throwbacks to another way of life

<p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/599d8517289cc61e008b4947-1638/170577-ferrari-portofino.jpg" alt="Ferrari Portofino" data-mce-source="Ferrari" /><p class="source"><span>Ferrari</span></p><p class="caption">The Ferrari Portofino.</p></div><p></p></div></div>The 2017-2018 auto show season is kicking off in style with the <a href="https://www.iaa.de/en/" target="_blank" rel="noopener noreferrer">Frankfurt Motor Show</a>. Carmakers from around the world have gathered in Germany to display their latest and greatest. Some of the cars presented to the public provide a glimpse into the companies' upcoming product offers, while others are simply flights of fancy that will never make it out of concept-land. </span></p><p><span>Major international brands including <a href="http://www.businessinsider.com/bentley-continental-gt-preview-frankfurt-2017-8" target="_blank" rel="noopener noreferrer">Bentley</a>,<a href="http://www.businessinsider.com/bmw-i3s-electric-car-sporty-edition-2017-8" target="_blank" rel="noopener noreferrer"> BMW</a>, <a href="http://www.businessinsider.com/ferrari-portofino-convertible-gt-unveiled-2017-8" target="_blank" rel="noopener noreferrer">Ferrari</a>, <a href="http://www.businessinsider.com/new-rolls-royce-phantom-vii-private-jet-road-2017-7" target="_blank" rel="noopener noreferrer">Rolls-Royce</a>, <a href="http://www.businessinsider.com/jaguar-e-pace-luxury-suv-2017-7" target="_blank" rel="noopener noreferrer">Jaguar</a>, <a href="http://www.businessinsider.com/porsche-cayenne-2019-new-features-pictures-2017-8" target="_blank" rel="noopener noreferrer">Porsche</a>, and <a href="http://www.businessinsider.com/frankfurt-motor-show-2017-mercedes-hydrogen-glc-car-2017-9" target="_blank" rel="noopener noreferrer">Mercedes-Benz</a> will all unveil show-stopping new models.</span></p><p>This year's show offers an extensive lineup of vehicles, ranging from production-ready sedans and supercars to electric cars and SUVs.</p><p>The 2017 Frankfurt Motor Show runs from September 14 to 24.</p>

16 hot cars we can't wait to see at the Frankfurt Motor Show

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8c4c04af9091fee2db223-2400/dscf0829.jpg" border="0" alt="monaco" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">Monaco may look pretty from a distance, but up close it's dense and sort of ugly.</p></div><p></p></div></div></p><ul class="summary-list"><li><a href="https://www.businessinsider.com/what-its-like-living-in-monaco-millionaires-yachts-casino-photos-2018-9?IR=T">Monaco is a tiny yet lavishly wealthy city-state</a> on the French Riviera with a glamorous reputation.</li><li>It's been called a playground for millionaires - and indeed, an estimated <a href="https://www.businessinsider.com/third-of-population-in-european-country-are-millionaires-2019-5">one-third of the population are millionaires.</a></li><li>From a distance, Monaco's backdrop of Mediterranean coastal landscape and its port full of sailboats and yachts make it look somewhat pretty.</li><li>But up close, I found Monaco to be mostly full of drab, outdated architecture. </li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul><p>At the end of September, I traveled for work from New York City to <a href="https://www.businessinsider.com/category/monaco">Monaco</a>, a tiny yet lavishly wealthy city-state on the French Riviera. </p><p>Monaco is a peculiar place. It's been called a playground for millionaires - an estimated <a href="https://www.businessinsider.com/third-of-population-in-european-country-are-millionaires-2019-5">one-third of its roughly 38,000 residents are millionaires.</a> It's <a href="https://www.businessinsider.com/mind-blowing-facts-about-monaco-wealth-2019-5">smaller than New York City's Central Park.</a> Each year, it plays host to glamorous events like the <a href="https://www.businessinsider.com/category/monaco-grand-prix">Monaco Grand Prix</a> and the <a href="https://www.businessinsider.com/category/monaco-yacht-show">Monaco Yacht Show</a>, which attract wealthy visitors from all over the world to the already highly affluent principality.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/mind-blowing-facts-about-monaco-wealth-2019-5">15 astounding facts about Monaco, the tiny French Riviera city-state where 32% of the population is made up of millionaires</a></em></p><p><a href="https://www.businessinsider.com/monaco-yacht-show-what-its-like-to-attend-not-a-millionaire-photos">I attended this year's Monaco Yacht Show,</a> where I got on board multimillion-dollar superyachts, toured luxury hotels, and spent a lot of time running around Monaco.</p><p>Cities on the famously scenic Mediterranean coast, from <a href="https://www.lonelyplanet.com/italy/liguria-piedmont-and-valle-daosta/portofino">Portofino</a> to <a href="https://www.businessinsider.com/pictures-of-santorini-greece-2014-9">Santorini</a>, are known for their beauty. And while beauty is, of course, subjective, I have to say, I found Monaco quite ugly.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8a6cb4af9097484030bd4-2400/dscf1033.jpg" border="0" alt="monaco architecture" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">Most of Monaco's buildings are eyesores.</p></div><p></p></div></div></p><h2>Monaco is full of ugly, outdated architecture</h2><p>From a distance, such as from out on a yacht in the harbor - a view I was lucky enough to get - Monaco is vaguely pretty, with its background of dramatic, rocky hills.</p><p>But up close, I found it to be straight-up ugly.</p><p>I think Lonely Planet summed it up well: "Despite its prodigious wealth, <a href="https://www.lonelyplanet.com/monaco">Monaco is far from being the French Riviera's prettiest town.</a> World-famous Monte Carlo is basically an ode to concrete and glass, dominated by high-rise hotels, superyachts and apartment blocks that rise into the hills like ranks of dominoes, plonked into an utterly bewildering street layout seemingly designed to confound lowly pedestrians."</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8b59ecc4a0a37b44ecc45-2400/dscf1156.jpg" border="0" alt="monaco monte carlo" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">In Monte Carlo, the Mediterranean's natural coastal beauty is ruined by glassy high-rises and dated '70s-era architecture.</p></div><p></p></div></div></p><p>With a few exceptions such as <a href="https://www.montecarlosbm.com/en/casino-monaco">its iconic Beaux Arts casino</a> and palm trees that make everything look a little nicer, Monaco's famous Monte Carlo district was not particularly attractive.</p><p>And the other parts of Monaco were even less so, full of drab, outdated high-rises.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8a8bacc4a0a252048c423-2400/dscf0539.jpg" border="0" alt="monaco" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">Monaco's development boom in the '50s, '60s, and '70s left it with some unappealing buildings.</p></div><p></p></div></div></p><p>According to real-estate consultancy firm Knight Frank, "much of <a href="https://content.knightfrank.com/research/1152/documents/en/2016-monaco-4125.pdf">Monaco was built between the 1950s and 1970s</a>, and, in many cases, has seen little modernization since."</p><h2>Monte Carlo's beach left much to be desired</h2><p>Then there's Monaco's one and only public beach. To be fair, my visit was in late September - not quite peak beach season. But I was completely unimpressed by Monte Carlo's Larvotto Beach, which was far from glamorous. It was very small, and instead of sand, there were small pebbles, which looked and felt more or less like gravel. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8a9244af909774620e1c2-2400/dscf1172.jpg" border="0" alt="monaco beach" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">Don't expect a pristine, sandy beach in Monaco.</p></div><p></p></div></div></p><p>Other French Riviera cities, like Nice, France have rocky beaches as well, but in a place like Monaco, I half-expected there to be fine white sand imported from somewhere like the Bahamas or Fiji.</p><p>The few beachfront bars and restaurants seemed rather outdated, and they were mostly closed except for one ice cream shop. The view of the water was obstructed by an unattractive concrete barrier, which was reportedly put in place <a href="https://www.riviera-beaches.com/Jellyfish.html">to keep out jellyfish</a> - although I still spotted one.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8b73bcc4a0a3a902431e3-2400/dscf1171.jpg" border="0" alt="monaco beach" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">What a view.</p></div><p></p></div></div></p><h2>Monaco isn't completely hideous, but there are much prettier cities on the French Riviera</h2><p>Monaco had its moments. I was a fan of its Old Town, which is perched up on a hill and is home to the Prince's Palace, a 17th-century chapel, and picturesque side streets. There were, of course, still Ferraris.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8a635cc4a0a21a172f264-2400/dscf0627.jpg" border="0" alt="monaco" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">I've never seen as many Ferraris in my life as I did in Monaco.</p></div><p></p></div></div></p><p>Old Town was full of narrow, cobblestoned streets lined with ice cream shops, restaurants, and small businesses.</p><p>I found Monaco's Old Town to be much more down to earth - even though it's literally on a hill - and charming than most of the city. It reminded me of nearby Nice, France, a city that's a 20-minute train ride away and much prettier than Monaco, in my opinion.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5da8a6a9cc4a0a22a978d093-2400/dscf0592.jpg" border="0" alt="monaco old town" data-mce-source="Katie Warren/Business Insider" /><p class="source"><span>Katie Warren/Business Insider</span></p><p class="caption">Monaco's Old Town had the feel of a medieval village.</p></div><p></p></div></div></p><p>Monaco is by no means the ugliest city I've visited. But for its global reputation of lavish wealth, glitz, and old Hollywood glam (American actress Grace Kelly was its princess, after all) I had expected it to be much more aesthetically pleasing.</p><ul class="read-more-links"><li>Read more about my time in Monaco:</li><li><a href="https://www.businessinsider.com/monaco-yacht-show-what-its-like-to-attend-not-a-millionaire-photos">Here's what it's like to attend the Monaco Yacht Show - in a country where the poverty rate is 0 - when you are not a millionaire</a></li><li><a href="https://www.businessinsider.com/monaco-yacht-show-inaugural-gala-photos-2019-9">I got into a Monaco Yacht Show gala for VIP superyacht buyers and industry elite. Here's what it was like at the exclusive party, which overlooked $4.3 billion worth of superyachts in the port.</a></li><li><a href="https://www.businessinsider.com/what-its-like-on-board-yacht-first-time-monaco-yacht-show-photos">I stepped on board a yacht for the very first time, a sleek Champagne-colored vessel for sale at an undisclosed price. Here's a look inside the 150-foot, Bugatti-designed superyacht.</a></li><li><a href="https://www.businessinsider.com/monaco-yacht-show-what-its-like-hotels-transportation-2019-10">I spent 2 days at the Monaco Yacht Show, and never in my entire life have I felt so out of place</a></li></ul>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/why-japanese-katana-swords-are-so-expensive-master-2019-10">Traditional Japanese swords can take over 18 months to create. Here's what makes them so special.</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/9eMzkkm7-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

I spent 5 days in a French Riviera city known for its lavish wealth, and I was surprised by how ugly it was

<p><em><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/599c8f28aa67ce2f008b45a8-1873/rtr3dr9d.jpg" alt="Bill Ackman concerned" data-mce-source="Reuters / Shannon Stapleton" data-mce-caption="Bill Ackman would be right to be worried about his Herbalife short following the company's decision to do a Dutch auction." /><p class="source"><span>Reuters / Shannon Stapleton</span></p><p class="caption">Bill Ackman would be right to be worried about his Herbalife short following the company's decision to do a Dutch auction.</p></div><p></p></div></div><strong>Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up <a href="http://e.businessinsider.com/join/ci/finance-insider-social-first&amp;hash=36afac95fa844948a9f363295d512fca" target="_blank" rel="noopener noreferrer">here to get this email delivered direct to your inbox</a>. </strong></em></p><p>Herbalife has a plan <a href="http://www.businessinsider.com/herbalife-stock-price-bill-ackman-hedge-fund-short-squeeze-2017-8">that could "squeeze" hedge fund billionaire Bill Ackman</a>.</p><p><span>First and foremost, the company's surging stock - up 11% over two days after a report that it </span><a href="http://www.businessinsider.com/herbalife-held-talks-to-go-private-and-its-stock-is-jumping-2017-8">held talks to go private</a><span> - has cost the Ackman-led Pershing Square Capital Management roughly $115 million on a mark-to-market basis, according to data compiled by the financial-analytics provider </span><a href="https://www.s3partners.net/">S3 Partners</a><span>.</span></p><p>And Ackman could be in for more pain because of Herbalife's decision to execute a so-called<span> </span><a href="http://ir.herbalife.com/releasedetail.cfm?ReleaseID=1037767">modified Dutch auction</a>, through which the company plans to buy back $600 million in shares at $60 to $68 a pop. The buyback of 8.8 million to 10 million shares could <a href="http://www.businessinsider.com/herbalife-stock-price-bill-ackman-hedge-fund-short-squeeze-2017-8">"actually squeeze Ackman out of some of his shorts," S3 says</a>.</p><p><span>In tech news, a $3.4 billion hedge fund is poking holes in conventional thinking over tech behemoths Amazon, Google, and Facebook - <a href="http://www.businessinsider.com/amazon-stock-price-draws-ire-from-jason-karp-tourbillon-capital-2017-8">and hinting at a potential sell off in the sector</a>.</span></p><p>Fiat Chrysler is <a href="http://www.businessinsider.com/fiat-chrysler-may-spin-off-maserati-alfa-romeo-2017-8">reportedly considering breaking itself up</a>. Google and Walmart <a href="http://www.businessinsider.com/walmart-and-google-voice-shopping-on-google-express-2017-8">are joining forces to take on Amazon</a>. And <a href="http://www.businessinsider.com/mutual-funds-reportedly-cut-estimated-value-of-their-uber-stakes-2017-8">Uber's turmoil has reportedly taken a toll on its valuation</a>.</p><p>New York City's famed <a href="http://www.businessinsider.com/photos-of-new-york-citys-plaza-hotel-2015-10">Plaza Hotel is once again looking for a buyer</a>. And new-home sales <a href="http://www.businessinsider.com/new-home-sales-july-2017-8">tumbled to a 7-month low</a>.</p><p>President Trump's obsession with <a href="http://www.businessinsider.com/trumps-obsession-with-loyalty-raises-concerns-over-his-preferred-pick-to-lead-the-federal-reserve-2017-8">loyalty raises concerns over his preferred pick to lead the Federal Reserve</a>, according to Business Insider's Pedro da Costa. </p><p>The <a href="http://www.powerball.com/pb_home.asp">Powerball</a> jackpot for Wednesday's drawing is up to $700 million. We did the<span> </span><a href="http://www.businessinsider.com/powerball-jackpot-700-million-expected-value-2017-8">math to see if it's worth buying a ticket</a>, and it probably doesn't make sense. Still, if you do win, here are the<span> </span><a href="http://www.businessinsider.com/powerball-lottery-jackpot-win-lawyer-up-2017-8">first two things you should do</a>.</p><p>Business Insider's Richard Feloni tried the software that uses AI to scan job applicants for companies like Goldman Sachs and Unilever before meeting them. He <a href="http://www.businessinsider.com/hirevue-ai-powered-job-interview-platform-2017-8">says it's not as creepy as it sounds</a>.</p><p>Lastly, Ferrari has unleashed the new Portofino convertible - <a href="http://www.businessinsider.com/ferrari-portofino-convertible-gt-unveiled-2017-8">its most affordable sports car</a>. And the new <a href="http://www.businessinsider.com/new-bmw-m5-specs-pictures-2018-2017-8">BMW M5 is the all-conquering beast we all hoped it would be</a>. Maybe you can buy one if you win the lottery. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/henry-blodget-on-stock-market-fear-and-high-valuations-2017-8">The stock market is on bubble watch - And unlike the dotcom era, this time the whole market is expensive</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/nmt0bigC-xjRU7l6Z.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

What you need to know on Wall Street today

<ul class="summary-list"><li>The coronavirus pandemic brought about the previously unthinkable in the <keyword id="34478" type="PERSON" weightage="60" keywordseo="auto-industry">auto industry</keyword>: <a href="https://www.businessinsider.com/coronavirus-timeline-how-the-pandemic-shut-down-global-auto-industry-2020-3">a near total global shutdown of production</a>.</li><li>Throughout the industry, a wide-ranging discussion has developed about what the post-COVID-19 car world could look like.</li><li>The industry has long suffered from excessive manufacturing capacity and what the <a href="https://www.businessinsider.com/sergio-marchionne-dead-obituary-2018-7">late Fiat Chrysler CEO Sergio Marchionne</a> trenchantly decried as an addiction to capital.</li><li>Post-COVID, the auto industry could undergo a massive consolidation, with mergers and partnerships preparing automakers to compete in a new world.</li><li><a href="https://www.businessinsider.com/category/destination-rerouted">Read more stories from the Destination Rerouted series here.</a></li></ul><p><keyword id="153309" type="PERSON" weightage="60" keywordseo="Sergio-Marchionne">Sergio Marchionne</keyword> was many things, besides CEO of both <keyword id="2036510" type="PERSON" weightage="60" keywordseo="Fiat-Chrysler-Automobiles">Fiat Chrysler Automobiles</keyword> and Ferrari: dry wit, loose cannon, financial engineer, Sphinx to journalists — and, often, an auto-industry scourge. Before his death, following complications from surgery in 2018, Marchionne had been planning his retirement after decades in the car business, but not without frequent excoriations over what he believed was the industry's single biggest problem.</p><p>Too many carmakers.</p><p>Marchionne infamously consolidated his thoughts in a widely discussed, debated, and circulated 2015 presentation self-loathingly titled <a href="https://www.autonews.com/assets/PDF/CA99316430.PDF">"Confessions of a Capital Junkie."</a> I never got to ask Marchionne if he was making a reference to the essayist Thomas De Quincey's "Confessions of an English Opium-Eater," from 1822, a work considered by many to be the first addiction memoir, but even if he wasn't, addiction was his subject.</p><p>Specifically, the "capital junkie" was Marchionne himself, and the addiction was to the cash that flows through the seemingly stable yet actually quite ragged and fragile veins of the global car business. The global auto industry is a multitrillion-dollar colossus, and it needs to be, because in Marchionne's estimation, the destiny of much of that money was to be wasted.</p><p>Big carmakers, he argued, "spend vast amounts of capital to develop proprietary components, many not really discernible to customers." Lurking over the horizon was an even more disturbing nightmare of waste, with companies pouring research-and-development into equally undifferentiated but extremely expensive electric powertrains, advanced safety features, infotainment systems, and autonomous technologies. The sins of the past would simply become the pricier sins of the future.</p><h2>Getting the capital monkey off the auto industry's back</h2><p><div type="image" title="Fiat Chrysler CEO Sergio Marchionne answers questions from the media during the FCA Investors Day at the Chrysler World Headquarters in Auburn Hills, Michigan May 6, 2014.  REUTERS/Rebecca Cook" height="503" width="800" msid="76536638" hostid="261"></div></p><p>Marchionne's conclusion was that the "capital consumption rate by [automakers] is unacceptable—it is duplicative, does not deliver real value to consumers and is pure economic waste." His solution was consolidation: fewer carmakers working with a smaller range of components and getting the capital monkey off their backs.</p><p>Marchionne put his company — Fiat Chrysler Automobiles, formed from the shotgun marriage of Fiat and bankrupt Chrysler during the 2008-09 financial crisis — where his mouth was. First, he borrowed a theme from the Chapter 11 struggles of General Motors and Chrysler and in 2015 <a href="https://www.businessinsider.com/fiat-chrysler-ceo-marchionne-is-really-pushing-his-luck-with-hopeless-gm-merger-talk-2015-6">courted GM CEO Mary Barra for a merger</a>. Rebuffed, he kept the idea alive, and in 2019, after his death, FCA attempted to join with Renault, but the deal collapsed. Later, <a href="https://www.businessinsider.com/why-fiat-chrysler-has-sought-to-merge-with-another-automaker-2019-10">it found success in combining with the PSA Group</a>, although in 2020 the tie-up still hadn't been completed.</p><p>In context, an FCA-PSA combination represented at least four carmakers becoming one: Fiat mated to Chrysler, PSA buying Opel-Vauxhall from GM in 2017. A Marchionnian dream, enriched by his successful spinoff of Ferrari from FCA in 2015, unlocking what by 2020 had become a $33 billion company.</p><p><div type="image" title="VW and Ford announcement re: ArgoAI and electric vehicles" height="867" width="1300" msid="76536639" hostid="261"></div></p><p>Meanwhile, the gigantic VW Group, reeling from its dieselgate scandal, was staring down an enormous level of new investment in electrification to satisfy tighter European regulatory requirements in a post-diesel world. <a href="https://www.businessinsider.com/ford-vw-announce-global-alliance-2019-1">It allied with Ford, immediately setting off merger speculation</a> — or at least speculation of another version of the Renault-Nissan-Mitsubishi alliance. <a href="https://www.businessinsider.com/general-motors-honda-are-expanding-their-electric-vehicle-partnership-2020-4">GM cozied up to Honda</a> to develop electric platforms for Cruise, GM's stand-alone autonomous ride-hailing startup, acquired for $1 billion in 2016 but worth $20 billion in 2020 after subsequent investment rounds.</p><p>Marchionne was gone, but the lessons of the capital junkie were being applied it seemed, all over the globe. What could be next? A Daimler-BMW combo? Would Toyota absorb Mazda and Subaru? Would the Renault-Nissan-Mitsubishi arrangement, the industry's oldest, collapse <a href="https://www.businessinsider.com/carlos-ghosn-what-really-happened-rise-and-fall-whats-next-2020-1">after the arrest of chairman Carlos Ghosn in Japan</a>, leaving Nissan and Mitsubishi as new targets for Toyota and sending Renault back to FCA-PSA?</p><h2>The black swan: Coronavirus shuts everything down</h2><p><div type="image" title="ford factory" height="2000" width="3000" msid="76536641" hostid="261"></div></p><p>The car business seemed to be preparing itself for Marchionne to get his wish from the great beyond when, in early 2020, the coronavirus pandemic crashed head on into the auto industry and shut it down — almost worldwide — for two months. In the US, a market that had boomed for five straight years, with automakers selling vehicles at a record or near-record pace, the monthly numbers plunged from levels that would have matched 2019 — about 17 million vehicles in total — to a pace of 8.5 million at the pandemic's peak in April, a nadir not seen since 1975.</p><p>Although most market observers expected operations to bounce back, and despite most carmakers having amassed huge war chests of cash after years of SUV and pickup-truck sales, an unprecedented new hurdle had emerged for an already challenged industry.</p><p>An M&amp;A surge wouldn't necessarily make all those challenges manageable. The history of mergers in the car business is exceptionally fraught; Chrysler's bankruptcy, in many ways, was a direct result of the takeover in 1998 by Daimler (the German giant eventually unloaded most of its stake to the private-equity firm Cerberus Capital Management, before the financial crisis and the 2009 bailout).</p><p><div type="image" title="FILE PHOTO: Mike Manley, CEO of Fiat Chrysler Automobiles (FCA), and FCA Chairman John Elkann (R) speak next to a 2019 Ram Heavy Duty Power Wagon pickup truck at the North American International Auto Show in Detroit, Michigan, U.S., January 14, 2019. REUTERS/Rebecca Cook/File Photo" height="1744" width="2325" msid="76536644" hostid="261"></div></p><p>Before the 2017 sale, GM had lost money on Opel for decades. Few in the industry thought the Renault-Nissan alliance would succeed, and with Ghosn's arrest in 2018 the internecine rivalries between the Japanese and French partners were laid bare. When Alan Mulally came from Boeing to a tumultuous Ford Motor Co. before the financial crisis he immediately set about shedding prestigious brands such as Aston Martin, Jaguar, and Land Rover, which were consuming inordinate resources.</p><p>But while the 20th century held the story of the auto industry's birth and triumphant rise to become the jewel of American business, the 21st has been shaping up to tell a different tale, with the old guard frantically trying to sustain its still-lucrative legacy while avoiding a distracted slide into irrelevance as younger and nimbler upstarts work to do what automobiles in the early 1900s did to the horse business of the 18th century.</p><p>The coronavirus pandemic dramatically revealed the traditional industry's core vulnerability: a total shutdown of the manufacturing machine — vast, sprawling, and multinational, employing hundreds of thousands of workers in close quarters — literally cost a fortune. The major automakers have spent tens of billions since March to sustain an apparatus that has been almost completely idle.</p><p>As Marchionne argued, a large part of that apparatus makes a redundant contribution. The industry, in 2015, would have to choose "between mediocrity or fundamentally changing the paradigm for the industry."</p><h2>Removing the problem of 'too much choice' from the market</h2><p>The numbers were on his side. The aerospace industry, for example, takes almost 20 years to consume the capital that the car business does in four. The largest sector in the entire economy, consumer and retail, takes 36 years. The problem for the auto industry, as Marchionne saw it, was then compounded by cyclicality, with companies swinging from robust profits to substantial losses. Ford went from having so much cash on hand — $20 billion — by the standards of the 1990s that analysts were worried that it had too much and wouldn't invest it correctly to losing almost $15 billion in 2009 and having to borrow $24 billion to avoid the same fate as bailed-out and bankrupt GM and Chrysler.</p><p><div type="image" title="Capital Junkie slide" height="1200" width="1904" msid="76536645" hostid="261"></div></p><p>For its part, GM had become such a capital-gobbling and inefficient enterprise by the early 2000s that it considered a strategic airlines-style bankruptcy as a preemptive strike against the debt load that would cripple it in the Great Recession. (The company's struggle to finance a bankruptcy at its former parts division, Delphi — among the largest and longest in US history at four years — killed that idea.)</p><p>Industry-specific cost-saving measures, from reducing the number of vehicle platforms to partnering to share expenses, hadn't solved the core financial problem, according to Marchionne. A more drastic reduction was called for. Effectively, the industry needed to <em>remove</em> choice from the market, because much of that choice, especially at lower price levels and higher production scale, was an illusion. A $200,000 Porsche 911 is quite different from a $200,000 Ferrari Portofino, but a $25,000 Toyota RAV4 and a $25,000 Honda CR-V are basically the same car. At an extreme level, the industrial logic dictates that both vehicles could be produced at exactly the same scale but with no engineering differentiation, and a substantial gain in unspent capital by both Toyota and Honda.</p><p>Consumers would still make buying choices based on brand values, loyalty, and relationship with dealers, but automakers would be able to curtail their capital addictions and invest in future technologies that would actually make a difference: electrified platforms, connectivity, data services, and automated factories.</p><p><div type="image" title="Elon Musk" height="2000" width="3000" msid="76536647" hostid="261"></div></p><p>The coronavirus pandemic has provided a glimpse into how these reforms could function. The Detroit automakers have moved first to restart their most important operations, building full-size pickups, because these are high-margin vehicles that represent a good return on capital as they offer so much differentiation to buyers. They've been less quick to resume manufacturing anything that has less differentiation, including sedans and crossovers.</p><p>The situation in the US is less open to consolidation than Europe, where Marchionne proved his mettle as the savior CEO of Fiat. In the US, manufacturing capacity is more rational, and plants that haven't performed have been closed. Famously, the <a href="https://www.businessinsider.com/tesla-factory-built-more-cars-when-it-belonged-gm-and-toyota-2017-10">GM-Toyota joint-venture in California, called NUMMI</a>, is now <keyword id="107096" type="COMPANY" weightage="60" keywordseo="Tesla">Tesla</keyword>'s main factory. And more recently there was <a href="https://www.businessinsider.com/why-tesla-should-rescue-a-gm-factory-in-ohio-2018-11">GM's plant in Lordstown, Ohio</a>, which had been making a slow-selling compact sedan, the Chevy Cruze.</p><p>In Europe, there are too many factories for market demand. With limited future growth — electric cars would simply replace internal-combustion market share, not expand it — those factories should be in China, the market that has the greatest potential to rise in the next decade (it's already larger than the US market and could be more than twice as large by 2030, with as many as 40 million vehicles sold annually).</p><h2>A postponed reckoning with recovery</h2><p><div type="image" title="mary barra donald trump Sergio marchionne" height="2000" width="3000" msid="76536649" hostid="261"></div></p><p>The car industry encourages stasis. Although it is cyclical, over 100 years of history have taught executives that business as usual will return after recessions. Even amid the unprecedented pandemic collapse, industry observers and insiders expect a relatively strong recovery. In the US, if Congress undertakes a massive incentive effort to spur demand — a <keyword id="8763838" type="UNKNOWN" weightage="60" keywordseo="covid-19">COVID-19</keyword> version of 2009's $3 billion "cash for clunkers" program — the 2020 sales tally could match or exceed 2019.</p><p>Marchionne, the quintessential opportunist, would call that a missed opportunity.</p><p>"It is ultimately a matter of leadership style and capability," he said of his cure for the capital junkie. The implication was that his leadership style and capability was the model, and that was his closing wink in the presentation — an indictment of the industry's ingrained cowardice, the endless excuses of the addict.</p><p>Marchionne, by the way, knew addiction well, as a committed chain-smoker and sleepless espresso fiend who quit puffing only a few years before his death. The uncured addict also continues to assert an influence, even if it's posthumous. When I interviewed a Detroit executive a few years ago, after Marchionne's passing, I shared that I had found my final notes from a Sergio press conference in a notebook that I'd brought with me. The exec and I agreed that it was eerie. And my notes were full of capital-junkie follow-ups.</p><p>Post-pandemic, the overwhelming urge initially will be to restore normality: factories back to full production, furloughed workers back on the job, cars and trucks selling briskly at dealerships, rock-bottom interest rates encouraging a fresh boom, automakers raking in a round of record profits.</p><p>But the capital addiction could remain, encouraged by borrowing backstopped by governments eager to avoid mass unemployment and Great Depression-level deflation. This was the critical flaw in Marchionne's otherwise compelling take: Despite his workaholic crustiness and cosmopolitan affection for sarcasm, he was a constitutional optimist. If he weren't Chrysler would no longer exist. His outlook simply wasn't grim enough to consider the worst-case scenario: a euphoric comeback from the pandemic means that the capital junkie has once again postponed his reckoning with the hard road to recovery.</p>

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