🏎️ Ferrari: The Racing Machine Even A Child Could Draw | 36

Summary

Podcast Summary: The Best Idea Yet – Episode 36: "🏎️ Ferrari: The Racing Machine Even A Child Could Draw"

Release Date: June 17, 2025

Hosts: Nick Martell and Jack Crivici-Kramer
Podcast: The Best Idea Yet by Wondery

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Overview

In this captivating episode, hosts Nick Martell and Jack Crivici-Kramer delve into the illustrious history of Ferrari—a brand synonymous with luxury, performance, and racing excellence. From the early inspirations of Enzo Ferrari to the company's rise as a global powerhouse in both motorsports and consumer automobiles, the episode unpacks the intricate balance between passion, innovation, and business strategy that has kept Ferrari at the pinnacle of the automotive world for over a century.

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Early Inspirations and Beginnings [04:46 – 09:35]

The story begins in 1908 at the scenic Via Amelia in Bologna, Italy, where a young Enzo Ferrari, then a mere 10-year-old, witnesses his first race featuring the iconic red Ferrari vehicles. This event ignites his lifelong passion for racing. Despite personal tragedies—losing his father and brother and struggling through World War I—Enzo's determination remains unshaken.

Notable Quote:

"I want to race cars for a living."
— Enzo Ferrari [07:30]

Enzo's initial attempt to join Ferrari at Fiat is thwarted due to his lack of driving experience, but his resilience leads him to network within the racing community. By the early 1920s, he secures roles at various small auto firms, eventually landing a pivotal position at Alfa Romeo where he excels as both a salesman and a racing driver.

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Formation of Scuderia Ferrari and Racing Dominance [09:35 – 16:05]

Enzo's dual role at Alfa Romeo proves instrumental in establishing a successful business model: win on Sunday, sell on Monday. His exceptional performance and strategic acumen enable him to launch Scuderia Ferrari in 1929, a racing team that quickly becomes a dominant force in Formula One.

Notable Quote:

"I build engines and attach wheels to them. Aerodynamics are for people who can't build engines."
— Enzo Ferrari [14:33]

Under Enzo's leadership, Scuderia Ferrari boasts a remarkable 64% win rate, securing 144 victories out of 225 races over eight years. However, internal conflicts with Alfa Romeo's new management lead to Enzo's departure in 1939, accompanied by a restrictive buyout that prevents him from using the Ferrari name for four years.

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Establishing Auto Avio and Overcoming World War II [16:05 – 19:47]

Undeterred by the buyout restrictions and the tumultuous onset of World War II, Enzo Ferrari founds Auto Avio Construzione (AAC) in 1939. Despite wartime challenges, including sourcing parts amidst resource shortages and relocating factories to Marinello to avoid bombings, Enzo's ingenuity shines as his team innovates by creating the AAC815—a precursor to the legendary Ferrari V12 engine.

Post-war, in 1947, Ferrari debuts the Tipo 125S, marking the first official Ferrari-branded car. This model features a powerful V12 engine, which becomes a hallmark of Ferrari's engineering prowess.

Notable Quote:

"When the driver steps on the gas, I want him to his pants."
— Enzo Ferrari [17:45]

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Rise to Prominence and Business Model Innovations [19:47 – 26:01]

Ferrari's dual focus on racing excellence and luxury consumer vehicles creates a synergistic "Ferrari flywheel." Success on the racetrack amplifies the brand's allure, driving demand for its exclusive road cars, which in turn fund further racing endeavors.

Despite the burgeoning success, Enzo's disdain for the commercial side of the business—prioritizing racing over production—leads to internal frustrations. His philosophy centers on scarcity and exclusivity, ensuring that demand always outstrips supply, thereby maintaining Ferrari's prestigious image.

Notable Quote:

"I will always deliver."
— Enzo Ferrari [25:59]

However, personal tragedy strikes in 1956 with the untimely death of his son Dino, leading Enzo to contemplate abandoning racing altogether. Instead, he rekindles his commitment, orchestrating a major victory at the 1957 Mille Miglia to stabilize the company's finances.

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Challenges and the Fiat Merger [26:01 – 36:33]

The relentless pursuit of racing glory leads to both triumphs and tribulations. A disastrous crash at the 1957 Mille Miglia results in multiple fatalities, tarnishing Ferrari's reputation and bringing legal scrutiny upon Enzo. Despite public outcry and legal battles, Ferrari's brand endures, albeit with diminished momentum.

Facing financial strains in the early 1960s, Enzo considers selling a stake of Ferrari to Ford. Rejecting this, Ford retaliates by targeting Ferrari's dominance at Le Mans, resulting in a series of losses that compound Ferrari's challenges. Ultimately, in 1969, Enzo sells a 50% stake to Fiat, securing the necessary capital to revitalize Ferrari while granting Fiat access to Ferrari's engineering expertise.

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Transformation and Cultural Icon Status [36:33 – 39:56]

With Fiat's support, Ferrari scales its consumer operations without compromising exclusivity. Production numbers increase modestly, allowing more enthusiasts to experience Ferrari's luxury while maintaining the brand's allure. The early 1980s usher in a pop culture renaissance for Ferrari, featuring prominent appearances in television shows like Magnum, P.I., Miami Vice, and Ferris Bueller's Day Off. These appearances cement Ferrari's status as a symbol of wealth and sophistication.

Notable Fact:

The 1963 Ferrari 250 GTO remains the most expensive Ferrari ever sold, fetching $70 million in 2018.

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Legacy and Modern-Day Success [39:56 – End]

Enzo Ferrari's legacy endures long after his passing at age 90. Scuderia Ferrari remains the oldest and most successful team in Formula One history, recently enhancing its roster by signing Lewis Hamilton—tying the record for most world titles. The "Ferrari flywheel" continues to thrive, with the consumer side of the business driving substantial profits that sustain their racing endeavors.

In 2016, Ferrari reasserts its independence with a $9 billion IPO, valuing the brand at approximately $80 billion. Today, Ferrari stands as a testament to Enzo Ferrari's vision—a harmonious blend of racing heritage and luxurious exclusivity.

Notable Quote:

"Ask a child to draw your product. If she draws it red, make it red."
— Jack Crivici-Kramer [39:28]

The episode concludes by highlighting Ferrari's profound understanding of branding and exclusivity, emphasizing that being the best in their category allows them to command premium pricing and sustain their legendary status.

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Key Insights and Takeaways

• Passion-Driven Leadership: Enzo Ferrari's unwavering commitment to racing excellence drove both innovation and brand prestige.

• Strategic Business Modeling: The integration of racing success with limited-production luxury vehicles created a powerful brand flywheel, sustaining Ferrari's dual focus on performance and exclusivity.

• Resilience Amidst Adversity: Despite personal losses, wartime challenges, and business setbacks, Ferrari's ability to adapt and merge strategically ensured its survival and growth.

• Cultural Integration: Ferrari's presence in popular media amplified its brand image, making it a global symbol of luxury and performance.

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Notable Quotes with Timestamps

• "I want to race cars for a living." — Enzo Ferrari [07:30]
• "I build engines and attach wheels to them. Aerodynamics are for people who can't build engines." — Enzo Ferrari [14:33]
• "When the driver steps on the gas, I want him to his pants." — Enzo Ferrari [17:45]
• "I will always deliver." — Enzo Ferrari [25:59]
• "Ask a child to draw your product. If she draws it red, make it red." — Jack Crivici-Kramer [39:28]

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Interesting Facts

1. Most Expensive Ferrari: The 1963 Ferrari 250 GTO holds the record for the most expensive Ferrari sold, fetching $70 million in 2018.

2. Ferrari in Film: The iconic Ferrari crash scene in Ferris Bueller's Day Off utilized a kit car with a fiberglass body to protect real GTOs from damage.

3. Prancing Horse Symbol: Ferrari's “Cavallino Rampante” was inspired by Francesco Baracca, a WWI flying ace, to honor his cavalry regiment and his love for horses.

4. Similar Emblems: Porsche's equine emblem is based on the city seal of Stuttgart, whereas Ferrari's prancing horse was a personal tribute, leading to similar-looking symbols purely by coincidence.

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Conclusion

"The Best Idea Yet" masterfully encapsulates Ferrari's journey from a young enthusiast's dream to a global luxury and racing titan. Enzo Ferrari's blend of passion, strategic innovation, and relentless pursuit of excellence serves as a blueprint for creating enduring brands. Ferrari's story underscores the power of intertwining product excellence with strategic business models and cultural resonance, making it the quintessential "best idea yet."

Transcript

[Nick Martell]

Wondery subscribers can listen to the best idea yet, early and ad free right now.

[Jack Crevici Kramer]

Join Wondery plus in the Wondery app or on Apple podcasts.

[Nick Martell]

You know, Jack, one of my mom's great observations from taking the subway for many, many, many years is that for men, there just happen to be a few topics that transcend socioeconomic barriers.

[Jack Crevici Kramer]

Yes, talking about sports conversations.

[Nick Martell]

Yeah, sports conversations are one. Like whether you're a plumber or an investment banker, you're finding common ground. Talking about the pitching order with the New York Yankees.

[Jack Crevici Kramer]

You put me in a barbecue anywhere in the United States, I'll ask the guy where he's from. Oh, Cincinnati. Are you a Kentucky Wildcats fan or Cincinnati Bearcats fan?

[Nick Martell]

Okay, so sports are like one of those transcending topics. The other one for guys tends to be cars.

[Jack Crevici Kramer]

Is that a 2013? I thought it was a 2013.

[Nick Martell]

Boom.

[Jack Crevici Kramer]

Friendship has started.

[Nick Martell]

From Anchorage, Alaska, to St. Augustine, Florida, you'll find guys have this common ground. But we've noticed there is one brand of cars that transcends any gender boundaries. Because it's not just a car, it's a work of art.

[Jack Crevici Kramer]

I think you're talking about the Ferrari 1961 Ferrari 250 GT California.

[Nick Martell]

That iconic scene from Ferris Bueller's Day off proves that the Ferrari is the perfect sports car. It's an icon. It is an aspiration status symbol. When you sign that big record deal or you get named partner at Goldman Sachs. Yeah. Your next stop is the Ferrari dealership.

[Jack Crevici Kramer]

The Ferrari is known for the throaty rumble of their powerful high revving engines. And of course, their signature red color.

[Nick Martell]

Rosso Corsa, which translates to racing red.

[Jack Crevici Kramer]

True story. Even though they're available in 30 different other colors, 40 of all new Ferrari sold are red. And we'll tell you the secret reason why.

[Nick Martell]

But whatever its color, a Ferrari is the ultimate luxury product. Because it's famous, well crafted, rare, and potentially dangerous. Ferrari is a company of contradictions. Because the very cheapest model of Ferrari starts at more than 200k and Ferrari produces fewer than 1000 of those a year out of a total of 13,000.

[Jack Crevici Kramer]

Ferrari's superpower is its exclusivity. Despite making so few cars, Ferrari is actually the most valuable car business in Europe.

[Nick Martell]

Which leads us to an even bigger contradiction. Ferrari achieved all of this success despite being the worst run company we've ever studied in any industry. And we think by the end of this episode, you'll be agreeing with us.

[Jack Crevici Kramer]

The greatest threat to Ferrari was always Ferrari, meaning the brand's brilliant Temperamental, extremely complicated founder, Enzo Ferrari. Because Enzo created Ferrari as a race car to dominate the circuit races of Europe. Which he did.

[Nick Martell]

But not everything in the Ferrari story is rumbling V12 engines and scarlet red finishes. Creating the perfect speed machine would also prove incredibly deadly.

[Jack Crevici Kramer]

We'll find out how Ferrari overcame one crisis after another to become the winningest racing team in Formula One history.

[Nick Martell]

And how a mid-80s surge in popularity can be traced back to a couple of handsome TV detectives, not Starsky and Hutch.

[Jack Crevici Kramer]

Plus, we'll reveal the critical business strategy that we call the Ferrari flywheel.

[Nick Martell]

And why winning the race is all about thinking like a kid with a red crayon.

[Jack Crevici Kramer]

Here's why the Ferrari is the best idea yet.

[Nick Martell]

From Wondery and T Boy. I'm Nick Martell.

[Jack Crevici Kramer]

And I'm Jack Crevice Kramer.

[Nick Martell]

And this is the best idea yet. The untold origin stories of the products.

[Jack Crevici Kramer]

You'Re obsessed with and the bold risk takers who made them go viral.

[Nick Martell]

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[Nick Martell]

A small crowd is gathered along the Via Amelia, a scenic boulevard extending from the pastoral Italian countryside full of olive groves and cattle all the way to central Bologna. The road's been freshly paved in preparation for today's race. The smell of asphalt stings. The spectators noses as they wait for the cars to zoom on by.

[Jack Crevici Kramer]

It's 1908, and auto racing is Europe's trendiest new sport. The pastime was born in France, but it's caught on quick in Italy.

[Nick Martell]

Jack, you know, nothing pairs better with a glass of chiani on a Tuscan hillside than watching professional drivers speed along that autostrada. Man.

[Jack Crevici Kramer]

Most early 20th century auto races take place on public roads. Drivers will often start in one city and finish the race in another city.

[Nick Martell]

And in those cities, they attract adoring fans wherever they go. Onlookers line the highways, watching and waving at the rumbling machines. And on September 6, 1908, you'll spot three such fans in the crowd. A metal worker named Alfredo Ferrari and his two young sons, 12 year old Alfredo Jr. And 10 year old Enzo. Though they've driven here from their nearby home in Modena to watch the Circuto.

[Jack Crevici Kramer]

Di Bologna, it's a big day for young Enzo, full name by the way. Enzo Anselmo Giuseppe Maria Ferrari.

[Nick Martell]

I think you stuck the landing on that thing, man.

[Jack Crevici Kramer]

He's a dark haired boy with wide set, heavy lidded eyes. Up until now, cars have been the passion of his father and older brother's lives. But today they've invited Enzo to join their fraternity.

[Nick Martell]

Now together, these Ferrari boys are cheering on the red cars, which are the Italian cars.

[Jack Crevici Kramer]

At this time, all race cars follow an international color system. White or silver are the cars of Germany. Blue is for France. Green is for Great Britain and Rosa Corsa, or racing. Red is for Italy. This color system makes the teens easier to follow for the fans as they're rocketing past you at 120 kilometers per hour.

[Nick Martell]

Well, sure enough, Jack, on this beautiful day, Enzo, his dad and his brother all watch as the red number 10 car wins the race.

[Jack Crevici Kramer]

The Ferrari boys are jumping up and down, laughing and hugging each other. This is a core memory for little Enzo and the start of his lifelong obsession with racing, even if he doesn't know it yet.

[Nick Martell]

You see, Enzo plans to become a journalist until a series of terrible events forces him down a very, very different path. In 1916, Enzo's father dies of pneumonia and then his big brother dies from influenza. The family's metalworking business collapses and Enzo is left to work odd jobs until he's drafted into the army.

[Jack Crevici Kramer]

During World War I, his job is putting horseshoes on mules for the Italian artillery division.

[Nick Martell]

While serving in the army, things get even worse. Enzo contracts a near fatal respiratory illness. And he spends months in a cold, dark hospital, barely able to breathe. But all of those bedridden months give Enzo something to think about. And he decides, if I survive this, I'm gonna do something exciting with my life. I want to race cars for a living.

[Jack Crevici Kramer]

Enzo is choosing yolo.

[Nick Martell]

Yes, he is, Jack.

[Jack Crevici Kramer]

Once he is discharged from the hospital, he heads north to Torin, or as the Italians say, Torino, home to the automaker Fiat.

[Nick Martell]

As a manufacturer, Fiat is big, Fiat is powerful. They're employing hundreds of workers. At the time, basically, Fiat was The Italian equivalent of Ford. And thanks to Italy's highly protectionist trade policies at the time, Fiat's got a monopoly over the entire Italian peninsula.

[Jack Crevici Kramer]

Tariffs, baby.

[Nick Martell]

Trigger war. This seems like a perfect place for Enzo to try and start his career as a driver.

[Jack Crevici Kramer]

Except Enzo has zero driving experience. He didn't drive tanks in World War I. He got his hands dirty putting metal sneakers on mules. Remember? Not exactly the best LinkedIn resume for someone trying to make it as a race car driver.

[Nick Martell]

So Fiat reject his job application.

[Jack Crevici Kramer]

This devastates Enzo Ferrari. He finds himself wandering alone in Torino with no prospects, no family, and no money. He is lonely, depressed, depressed. And it's snowing out.

[Nick Martell]

Oh, boy.

[Jack Crevici Kramer]

He brushes off a park bench and sits down, looking out on the icy Po River. This is when Enzo makes himself a new promise. He is going to make it in the auto industry, no matter what Fiat or anyone else has to say about it.

[Nick Martell]

Enzo finally breaks into the driving world. Thanks to his own craftiness. He figures out that all the drivers actually hang out in the same bars around Turin. So he starts hanging out in these bars cars as well. And pretty soon, he's schmoozing his way into a job.

[Jack Crevici Kramer]

Networking. Good for the 1920s, still good in the 2000s. Well.

[Nick Martell]

And so he works his way up and up and up at a series of small auto firms, from handyman to transporter to test driver. And along the way, he's learning how cars work, how they're put together, what engines each model uses, and, of course, how to drive them. This is how, in the early 1920s, Enzo finds himself both racing and selling cars for an upstart Italian automaker called Alfa Romeo.

[Jack Crevici Kramer]

Alfa Romeo is way smaller than Fiat, but they're trying to get their footing in both the racing and commercial auto world. And Enzo becomes a big part of that strategy.

[Nick Martell]

Enzo's job title with Alfa Romeo would never exist today. Basically, he becomes both their top sales agent and a driver on their racing team. It'd be like the CFO at Disney, also doing the voice of Buzz Lightyear.

[Jack Crevici Kramer]

Enzo sets up a dealership and becomes the exclusive sales agent for Alfa Rome. In his hometown of Modena.

[Nick Martell]

Enzo cleverly flexes his growing fame as a race car driver to impress the customer and close the deal. And the more races he runs, the more locally famous he gets. And that leads to more and more sales.

[Jack Crevici Kramer]

But pump the brakes, Nick. What Enzo is doing in his funky hybrid role at Alfa Romeo actually becomes the new business model of the young car industry. He realizes that Alfa Romeo's racing team acts like one big advertisement for the car brand, because as more and more people fall in love with the sport, the brands that win are the brands that people want to own for themselves.

[Nick Martell]

This reminds me of the concept. Win on Sunday, sell on Monday. When people see a brand attached to a winning sports team, it literally boosts sales of the associated product the very next day. Sometimes that's cans of Red Bull. Other times, it's automobiles.

[Jack Crevici Kramer]

Enzo's dual role as salesman and driver means he benefits from both sides of this equation. His team is doing the winning on Sunday and the selling on Monday. It's a double dip.

[Nick Martell]

Having proved himself to Alfa Romeo, they place Enzo in charge of his own racing team in 1929. Scuderia Ferrari.

[Jack Crevici Kramer]

Scuderia means stable. So this is a stable of race cars. Scuderia Ferrari is still what Ferrari calls their team today, almost a century later.

[Nick Martell]

Now, we should point out, Jack, that Enzo doesn't own this team, but he does run this team. He's basically a general manager. And his salesman skills translate really well to recruiting the industry's best drivers and best engineers. Just one year later, after its founding, Scuderia Ferrari is winning more than a third of its races. And the Ferrari name starts ringing out across the racing world.

[Jack Crevici Kramer]

By 1931, Enzo is no longer driving these cars. He is steering the entire team at this point.

[Nick Martell]

And you know what, Jack? He's better at that. Plus, racing in the Sarah is insanely dangerous. Deadly crashes occ regularly, both on the practice tracks and on the open road.

[Jack Crevici Kramer]

And here's the thing. Enzo is about to become a Padre.

[Nick Martell]

Congratulations, Enzo. 1932. He and his wife Laura, welcome a son, and they name him Alfredo, the same name as Enzo's deceased father and his brother.

[Jack Crevici Kramer]

Alfredo, nicknamed Dino, is born frail, and he'll actually face health struggles his entire life. But Enzo loves the boy like crazy and pictures him taking over Scuderia Ferrari someday. Which, by the way, is continuing to load up the trophy shelf as a racing team.

[Nick Martell]

In 1932, Enzo gives the team a special insignia. The catalino rampante, a prancing horse. A black stallion rearing up on his hind legs against a yellow backdrop that you have definitely seen before. Ferrari's cavalino rampante will one day become a coveted status symbol around the world. But for now, it's stamping all over the racing circus, especially at Italy's hottest open road race.

[Jack Crevici Kramer]

The mille miglia mile is thousand and milia means miles. So there's your duolingo lesson for the Day. This race is 1000 grueling miles of hairpin turns and narrow streets from the town of Brescia to Rome and then back.

[Nick Martell]

Now, Jack, we should point out that of all the championship races of Europe, the Mille Miglia is the point of national pride. You win the Mille, you win Italia. So when Alfa Romeo's Sweep the top 10 spots in the 1933 Mille Miglia, with a first place car prepped by Ferrari, Enzo becomes a national star. This guy is 6 foot 2, he's got a big presence, a huge appetite for tortellini, which we fact checked, by the way, and maybe the biggest ego in all of racing.

[Jack Crevici Kramer]

But with this ego comes an unwillingness to compromise. And that's going to be a problem for him farther down the road.

[Nick Martell]

After learning so much about Enzo Ferrari, we actually created a list of our favorite Enzo quotes that capture the whole Ferrari story. Jack, could you please lay the first one on us?

[Jack Crevici Kramer]

I've got two, Nick. Enzo says I build engines and attach wheels to them. He also says aerodynamics are for people who can't build engines.

[Nick Martell]

Translation. When it comes to race cars, he cares about three things. The engine, the engine and the engine. And in 1939, Enzo gets a chance to try out this theory when he gets fired by Alfa Romeo.

[Jack Crevici Kramer]

Did his racing team stop winning or something?

[Nick Martell]

Jack, it's the opposite of that. Scuderia Ferrari won 144 of the 225 races they participated in over eight years.

[Jack Crevici Kramer]

That's a 64% win percentage.

[Nick Martell]

That is insane. But partway through that eight year run, Alfa Romeo comes under new management. And the new boss hates Enzo. And as you can imagine, Enzo hates the new boss.

[Jack Crevici Kramer]

This is more than your usual workplace drama. This is an existential struggle for who has final say in how the racing team is run. Enzo thinks it should be him. The new boss, Alfa Romeo, respectfully disagrees.

[Nick Martell]

But let's look at the fine print. Because this divorce with Alfa Romeo, it does come with a buyout. So Enzo gets over a million lira, or $1.3 million in today's money. And this critically gives him the startup capital to go into. Enzo is shifting gears over to founder mode.

[Jack Crevici Kramer]

There's just one catch. The terms of the buyout say that Enzo is not allowed to start a racing team under his own name for four years. Translation, for four years, Ferrari can't use the name Ferrari.

[Nick Martell]

But to Enzo, this ain't no stop sign. This is a checkered flag. So he takes his million lira and launches Auto Avio. Construzione, or aac.

[Jack Crevici Kramer]

His name may not be on the team, but his handiwork is. Enzo has total control over the drivers, the strategy, and the machines themselves. Pretty much, he has achieved his dream.

[Nick Martell]

But Jack, we should sprinkle on some historical context here because he happens to have picked a rotten time and place to start a Company. Europe, 1939. Italy's dictator, Benito Mussolini is months away from aligning with Hitler and dragging the whole country into one. World War II.

[Jack Crevici Kramer]

International borders are starting to look like conflict zones, so this is not the best time to be sourcing auto parts from Stuttgart.

[Nick Martell]

Yeah. With no real supply chain, Enzo's team has to cobble together their first car parts from whatever materials they can scrounge up. Although one of the fundamentals of entrepreneurship is that necessity is the mother of.

[Jack Crevici Kramer]

Invention, Ferrari's engineers get a hold of a small Fiat sedan. This little Fiat also has a little four cylinder engine. It's got pretty modest power, but Jack.

[Nick Martell]

They'Re gonna need to give this thing a little more oomph under the hood. So one of Enzo's engineers attaches a second four cylinder engine to the first one, and voila, you get an eight cylinder engine. Double the power, baby.

[Jack Crevici Kramer]

This thing is like a Ford Focus with a rocket launcher under the hood.

[Nick Martell]

But like we said, Enzo is all about the engine power. No shock for a guy who's been in love with racing since he was 10. Remember those quotes about the importance of engines? Well, here's another.

[Jack Crevici Kramer]

When the driver steps on the gas, I want him to his pants.

[Nick Martell]

If this business is Enzo's baby, then speed is his favorite child. They build two units of this pan soiling car, which they call the AAC815. And soon they're ready for their first race. The 1940 Mille Miglia, Italy's super bowl of auto racing. Ultimately, that race is won by a German BMW. But Enzo's 815s performed surprisingly well. And this is a moment to not underestimate in the history of Ferrari. Because they prove that Enzo can be a contender even without Alfa Romeo.

[Jack Crevici Kramer]

But no sooner does this race end than Italy enters World War II. Enzo's company is forced by government decree to pivot the business and make supplies for the Italian armed forces. Like it or not, Enzo is trading race tracks for tank tracks.

[Nick Martell]

Italy's government actually orders all businesses to decentralize so they cannot be wiped out in a single bombing. And Enzo, he has to build a brand new factory in the small town of Marinello. The war brings bombing Raids that almost wipe out Enzo's factories twice. But when it's all over, Enzo emerges fully capitalized. And in 1945, he even changes the company name to Auto Construzioni Ferrari.

[Jack Crevici Kramer]

It's been more than four years. Ferrari gets his name back.

[Nick Martell]

Spoke to the lawyers. We're good to go. 1947. Enzo launches the Ferrari Tipo 125S, the first official model bearing the Ferrari name. And, man, it looks less like a race car, more like a Michelangelo sculpture.

[Jack Crevici Kramer]

This is an outrageously gorgeous car for a debut model. The body is handcrafted in house in Italy.

[Nick Martell]

Bellissimo.

[Jack Crevici Kramer]

It's that deep red Rossa Corsa, Italy's red racing color, which will also become Ferrari's signature color. Even after that international color coding fades away.

[Nick Martell]

Jack, let's be honest. We know that Enzo really only cares about three things.

[Jack Crevici Kramer]

The engine, the engine, and the engine.

[Nick Martell]

And you remember how his last team made an eight cylinder engine by putting two fours together under one hood?

[Jack Crevici Kramer]

I think I know where you're going with this snake.

[Nick Martell]

Oh, well, for this one. 25s, his team manages to fit a 12 cylinder engine in a V shaped configuration.

[Jack Crevici Kramer]

Voila.

[Nick Martell]

A V12 engine. Triple the power.

[Jack Crevici Kramer]

This V12 will become so identified with Ferrari that a lot of people assume he personally invented it.

[Nick Martell]

He did not, by the way. But either way, the V12 gives the Ferrari 125S the winning edge. Enzo's reassembled Scuderia Ferrari racing team wins its very first grand prix victory in Rome in 1947.

[Jack Crevici Kramer]

This win kicks off an era of racing domination for Ferrari in the 1950s. But the coming decade will also bring terrible tragedy to Ferrari, upending the business, the whole sport of auto racing, and Enzo himself.

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[Nick Martell]

The bedroom is dark, lit by moonlight and a tiny nightlight. 57 year old Enzo Ferrari sits beside his son's bed. His white haired head bends over a notebook filled with dense neat writing. Enzo carefully reviews the numbers jotted on each and every line. It's 1956. Dino is now 24, tall like his father, but so thin and frail he looks way younger. Enzo's son is sick with muscular dystrophy. Enzo's response, it's been to tinker as though he's trying to fix a faulty engine. He tracks every calorie the boy eats, every gram of medicine from the world's best doctors. They are trying to win a race against illness and time.

[Jack Crevici Kramer]

Dino has always had health struggles, but before things got bad, he'd been active in helping his father grow Ferrari.

[Nick Martell]

Ever since the Ferrari 125s surged onto the racing scene, the public has been in love with these cars. In 1949, Ferrari wins the Le Mans. A grueling 24 hour circuit race that I still don't understand how they go to the bathroom. And then the very next year, a new racing circuit debuts that truly is going to put Ferrari on the world stage.

[Jack Crevici Kramer]

Formula One Formula One or F1 cars are open wheeled racers. Meaning the wheel is set apart from the body of the car and there's only a single seat for the driver. This new racing league means Ferrari has to make a second second type of car.

[Nick Martell]

On the one side you'll have these Ultra High Performance F1 cars that are meant just for the racetrack. But on the other you still have the original two seater Ferrari roadsters. The ones that compete in the open road races like the Mille Miglia. And here's the key, these street legal racing cars can also be sold to wealthy members of the public. So Ferrari decides to do exactly that. Transitioning from racing companies to racing company that also sells consumer cars.

[Jack Crevici Kramer]

And Ferrari start selling their roadsters to literal royalty. From King Leopold of Belgium to Argentina's president Juan Peron. Building these cars for the world's wealthiest makes the town of Maranello world famous. And it's actually what keeps Ferrari afloat.

[Nick Martell]

It actually becomes a wonderful feedback loop for the business. Jack and I call it the the Ferrari flywheel. Because the race cars draw attention to the consumer cars and the consumer cars pay for all the race cars.

[Jack Crevici Kramer]

But the commercial side of Ferrari bores Enzo. He cares about the racetrack, not the showroom. He was so disinterested in the consumer car business. That he keeps even the VIPest of VIP customers waiting for hours or days before granting them an audience. This includes the literal Shah of Iran, who orders a custom built Ferrari from Enzo and picks it up from the factory in person. We said at the top of the show that Ferrari was one of the worst run businesses we'd ever studied. Well, this is kind of why usually if one side of your business is making all the profits and one side of the business is losing money, you probably want to invest in the profit side.

[Nick Martell]

Enzo's disdain for the profit puppy here really frustrates his employees and coworkers, including his wife and co owner Laura. Why not scale up production at least a little bit, Enzo? You could sell like two more cars, man, and we could pay everyone on time.

[Jack Crevici Kramer]

To Enzo, this is a distraction. Let the Shah wait. Ferrari must always defend its record on the track. Enzo thinks this is key to survival.

[Nick Martell]

It does sound crazy, but Enzo's instinct isn't totally wrong here. Because when it comes to luxury brands, reputation is everything. You are best in category or you are nothing.

[Jack Crevici Kramer]

Like Ricky Bobby said, if you ain't first, you're last.

[Nick Martell]

This leads us to our next Ferrari quote that actually explains the entire luxury industry. Enzo actually says, I will always deliver.

[Jack Crevici Kramer]

One less car than the market demands.

[Nick Martell]

His extreme limitations on production just keep his clients wanting more. And it makes sense because scarcity is the foundation of a luxury brand. The harder to get your product, the more people want to try to get it. And when demand is bigger than supply, you have pricing power.

[Jack Crevici Kramer]

So even though it's driving his management team and his wife crazy, Enzo stays laser focused on outracing the competition.

[Nick Martell]

That is until June 1956. Enzo's son, Dino Ferrari dies at the young age of 24. After a long and agonizing battle with muscular dystrophies. It devastates Enzo and Laura and it totally fractures their marriage.

[Jack Crevici Kramer]

With Dino's death, Enzo declares that nothing matters anymore, not even racing. He considers selling Ferrari to a bigger company like Ford or Fiat. This makes national news across Italy. The whole nation is actually worried that their most treasured car brand may get sold to the Americans.

[Nick Martell]

Enzo actually doesn't end up selling. After six months of very public mourning, he starts re engaging. And when he's back, he is back. Full throttle. Enzo assembles a seven man supergroup of racing stars to tackle the next big Grand Prix in the racing schedule. The 1957 Mille Miglia. Winning this one race, he believes will be the key to the company's financial woes.

[Jack Crevici Kramer]

Win on Sunday, sell on Monday. Simple as that.

[Nick Martell]

Well, maybe not so simple after all. It's a fragrant sunny Sunday in May in the villa of Cavriana in northern Italy. Townspeople, they've gathered in clusters to watch hundreds of the world's fastest cars zing by by the side of the road. Children are waving, men are tipping their caps, and women have put on their freshly laundered dresses. This is the 1957 Mille Miglia. As gorgeous a race day as Enzo's very first one back in Bologna when he was 10 years old, cheering on with his father and his older brother.

[Jack Crevici Kramer]

But today, these villagers are most excited for car number 531. It's the Ferrari, driven by a 28 year old Spaniard named Alfonso de Portago.

[Nick Martell]

De Portago isn't just a driver. This guy is a literal royal. He's one part Lewis Hamilton, one part Prince Harry.

[Jack Crevici Kramer]

Deportago speaks four languages, has a Hollywood girlfriend and a talent for getting every inch of power out of an engine.

[Nick Martell]

Imagine the excitement when the spectators get to see the 531 car, bright red, appear on the horizon. De Portago is going 155 mph, goggles strapped on his face, and his trusty navigator, Edmund Nelson, right by his side in the passenger seat.

[Jack Crevici Kramer]

Because remember, this is a race across the Italian countryside and there's no gps.

[Nick Martell]

So, like, each race car also includes a navigator to make sure you make a right when you're supposed to make a right.

[Jack Crevici Kramer]

But then the teeniest, tiniest obstacle turns this beautiful day into a nightmare. Dave Portago's left front tire hit something. Most likely the raised lane marker in the middle of the road.

[Nick Martell]

The tire blows. De Portago loses control of the car and it ricochets off a telephone pole and then flies through the air, careening directly into the crowd, leaving chaos in its wake. De Portalgo is killed instantly. So is Edmund, his navigator. And so are nine spectators, including five children.

[Jack Crevici Kramer]

Just 28 miles away at the finish line in Brescia, De Portago's teammates are popping champagne. Scuderia Ferrari has taken the top three spots. They're just waiting for De Portago to join them. It's several minutes before anyone realizes something's wrong.

[Nick Martell]

This Mille Miglia tragedy of 1957 shocks the world. In fact, the Italian government shuts the race down for good. Everyone is looking for someone to blame. And that someone ends up being Enzo Ferrari. The Italian government even puts Enzo Ferrari on trial for manslaughter. The indictment is actually about the tires. They say Ferrari over inflated them. But in reality, this case is about putting Enzo's attitude on trial in the court of public opinion. He's infamous for pushing his drivers, playing them against each other to stoke competition, and basically treating the humans driving his machines like interchangeable carburetor parts. This is about Enzo and his total obsession with racing. He calls it a terrible joy, a great mania to which one must sacrifice everything. Eventually, the prosecutor drops the case. But Ferrari's brand is badly damaged and there is nothing his pit crew can do about it.

[Jack Crevici Kramer]

And unfortunately, things are going to get worse before they get better.

[Nick Martell]

Now, by the early 1960s, Ferrari has lost so much momentum and cash that Enzo. Enzo once again considers the most disturbing move that an Italian brand can make.

[Jack Crevici Kramer]

Selling to the Americans.

[Nick Martell]

Mamma mia. Jack. Specifically, Enzo pursues selling a stake of his company to Ford Motor Company.

[Jack Crevici Kramer]

But at the last minute, Enzo pulls out of the deal. And this enrages the head of Ford, who is the founder's grandson, Henry Ford ii.

[Nick Martell]

So he engineers a revenge plan. Plan. Ford becomes obsessed with embarrassing Ferrari on the world stage. Specifically at the famous 24 hour race of Le Mans.

[Jack Crevici Kramer]

Remember when Ferrari winning le Mans in 1949 put them on the global map? Well, in the early 60s, Ferrari is on an epic Le Mans winning streak. In the 12 year span from 1954 to 1965, a Ferrari wins the race race eight times.

[Nick Martell]

But what the packers are to football at this time, Ferrari is to racing.

[Jack Crevici Kramer]

And Enzo is their Vince Lombardi. Even when his company is going broke, Ferrari manages to win races.

[Nick Martell]

And that's why in 1966, Ford sets out to create a new race car designed for exactly one purpose. Beat Ferrari at Le Mans.

[Jack Crevici Kramer]

If you've seen the film Ford vs Ferrari, that movie is about this quest.

[Nick Martell]

Incredibly, Ford sweeps the podium.

[Jack Crevici Kramer]

Meanwhile, Ferrari's cars don't even finish the race. Ford will go on to win Le Mans for the next four years straight.

[Nick Martell]

For decades, Enzo Ferrari has been trying to keep his company independent. But losing Le Mans is just one blow too many. So in 1969, with the company's bank account running on fumes, Enzo sells a 50% stake of his company for 250 million Italian lira. A little under 3 million bucks today.

[Jack Crevici Kramer]

But he doesn't sell it to Ford.

[Nick Martell]

Can you pull this podcast over so we can take a pit stop before the ad break?

[Jack Crevici Kramer]

Oh, I'll turn on my blinker.

[Nick Martell]

There we go.

[E]

You know those creepy stories that give you goosebumps? The ones that make you really question what's real? Well, what if I told you that some of the strangest, darkest and most mysterious stories are not found in haunted houses or abandoned forests, but instead in hospital rooms and doctor's offices? Hi, I'm Mr. Ballin, the host of Mr. Balin's Medical Mysteries. And each week on my podcast, you can expect to hear stories about bizarre illnesses no one can explain, miraculous recoveries that shouldn't have happened, and cases so baffling they stumped even the best doctors. So if you crave totally true and thoroughly twisted horror stories and mysteries, Mr. Bolan's medical mysteries should be your new go to weekly show. Listen to Mr. Ballin's Medical Mysteries on the Wondery app or wherever you get your podcasts. You can listen early and ad free right now by joining Wondery in the Wondery app or on Spotify or Apple podcasts.

[Nick Martell]

Enzo is 71. He's past retirement age for most people. After struggling with sales and racing tragedies, maybe it's time for him to move down to the Amalfi coast ghost spend his days decanting Lambrusco.

[Jack Crevici Kramer]

But that's not what happens.

[Nick Martell]

No, instead, Ferrari becomes a powerhouse in the world of luxury consumer sports cars. And Enzo actually stays in charge well into his 80s.

[Jack Crevici Kramer]

Okay, Nick, we might need to break down how this happens, because last we checked, Ferrari was running on empty.

[Nick Martell]

Well, Jack, it actually all goes back to a shocking merger in 1969. No, not with Ford, as Enzo had teased, but instead with fiat. Enzo sells 50% of his beloved company to Italy's biggest, basic, est. Boringest car company.

[Jack Crevici Kramer]

Italy's most exclusive luxury car brand sells to the company, making sedans that Sicilian grandmas drive to the Mercado.

[Nick Martell]

It turns out to be a Triumph, one that arguably saves both Ferrari and Fiat at the right time. This is kind of like the ultimate Italian wedding. There's drama, there's hugging, and there's a whole lot of envelopes with cash getting handed out.

[Jack Crevici Kramer]

Well, Fiat has the size, the manufacturing capacity, and most of all, the money. Yeah, at the time of the merger, Fiat is making more than $2 billion.

[Nick Martell]

In sales in 1960s billions.

[Jack Crevici Kramer]

So Fiat's cash flow helped dig Ferrari out of debt.

[Nick Martell]

Meanwhile, Ferrari is giving Fiat something they've been missing.

[Jack Crevici Kramer]

Mystique.

[Nick Martell]

Because Fiat, they've been struggling in international consumer markets because of some shoddy product lines. So working with Ferrari gives Fiat some badly needed cred, not to mention access to the finest automotive engineers in the world to improve their cars. This deal is a win. Win, baby.

[Jack Crevici Kramer]

Gaining access to Fiat's financial Resources and infrastructure allows Ferrari to finally scale up the consumer side of their business. They can sell more luxury cars to the public.

[Nick Martell]

They keep the production numbers low for exclusivity, but they increase them just enough to make the brand profitable. By 1971, they're making about 1,000 Ferraris commercially available every year. And by the end of the 70s, that number has doubled to 2,000, which is still not a lot of cars, but it is triple the output Ferrari had before the merger.

[Jack Crevici Kramer]

And even this small increase puts enough Ferraris into circulation that you might actually spot one on the street or in your favorite film or TV show.

[Nick Martell]

That's right, because Ferrari's modern inflection point doesn't come from an Italian racetrack. It comes from a cop down in Miami with a Tom Selleck mustache.

[Jack Crevici Kramer]

The early 1980s sees a pop culture Ferrari boom. Magnum PI drives a Ferrari. And so does Crockett, the blow dried detective from Miami Vice. And then there's the Ferrari cameo we teased at the beginning.

[Nick Martell]

1986'S Ferris Bueller's Day off includes a major subplot wherein Ferris pressures his best friend Cameron into borrowing his father's immaculate vintage Ferrari. And trigger warning, it all goes wrong. What'd I do?

[Jack Crevici Kramer]

You killed the car.

[Nick Martell]

So Cameron Frye may have killed his dad's Ferrari, but Ferrari, the brand is obviously alive and well. And amazingly, Enzo Ferrari stays in charge of it until his final days.

[Jack Crevici Kramer]

Technically, Enzo steps down as company president in 1977. But in all the important ways, he's still running the show.

[Nick Martell]

Enzo Ferrari passes away at the age of 90. And despite all the mistakes, the tragedies and the heartbreaks, the Ferrari name remains as strong as ever. In fact, it is living its best life. Today, Scuderia Ferrari is the oldest and winningest F1 team in history. So why are they in the news? Because they recently added F1's brightest star to their stable.

[Jack Crevici Kramer]

Lewis Hamilton. The man tied for most world titles.

[Nick Martell]

At seven and counting.

[Jack Crevici Kramer]

He's now suiting up in bright Ferrari red. We think Enzo Ferrari would approve of this hire.

[Nick Martell]

Absolutely, Jack.

[Jack Crevici Kramer]

Because to him, Ferrari was always a racing company first, a car company second. He basically had to be dragged kicking and screaming into making a consumer product at all. If he had, though, Ferrari may not have survived, much less reach the heights they're at today.

[Nick Martell]

But as cool and as ripped a race car driver as Lewis Hamilton is, we'd argue it's the consumer side of Ferrari that ultimately won the business. That half of the Ferrari flywheel, that's what's really driving the company today. Figuratively.

[Jack Crevici Kramer]

Ferrari regained its full independence in 2016, one year after a $9 billion IPO. And today, the Ferrari brand is valued at around $80 billion. And, Nick, what is the ticker symbol of Ferrari on the stock market?

[Nick Martell]

R A C E. Race.

[Jack Crevici Kramer]

Race. Something that would make Enzo press.

[Nick Martell]

So, Jack, now that you've changed your pants and heard the story of Ferrari, what's your takeaway?

[Jack Crevici Kramer]

My takeaway comes from yet another classic Enzo Ferrari quote. Ask a child to draw a car, and certainly he will draw it red. Enzo's understanding of branding was so deep. I mean, Enzo took Italy's official racing color and claimed it for Ferrari. And that wasn't just about national prize ride. It was about giving the car an instinctive, emotional branding that the buyer isn't even totally conscious of. Why should a race car be red? You just kind of feel it when.

[Nick Martell]

You'Re thinking about branding. Ask a child to draw your product. If she draws a red, make it red.

[Jack Crevici Kramer]

How about you, Nick? What's your takeaway?

[Nick Martell]

My takeaway is superlatives sell. You see, the profitability of Ferrari is truly insane, especially when compared to the rest of the car industry. Industry? In 2024, Ferrari made almost 1.5 billion euros in profit on fewer than 14,000 cars. Compare that to the 12.4 billion euros of profit that VW made on their 9 million cars and buses sold.

[Jack Crevici Kramer]

That means Ferrari is almost 80 times as profitable as Volkswagen on a car per car basis.

[Nick Martell]

Because Ferrari thrives on superlatives.

[Jack Crevici Kramer]

The fastest track to time, the most powerful engine, the most exclusive sports car. This is why Enzo Ferrari was so obsessed with winning. Brands are built on their reputation, and reputations are built on being the best or the most at something.

[Nick Martell]

And once you have that, you can limit how many people can get and charge them whatever the heck you want.

[Jack Crevici Kramer]

Okay, before we go, it's time for my absolute favorite part of the show, the best facts yet yet.

[Nick Martell]

These are the hero stats, facts, and surprises we discovered in our research. But we just couldn't fit into the story. All right, Jack. Starting gates. Let's go. What do you got?

[Jack Crevici Kramer]

The record for most expensive Ferrari ever is held by a 1963 Ferrari 250 GTO. It was sold in 2018 for $70 million. Adjusted for inflation, that is five times the entire budget of Ferris Bueller's day off. But speaking.

[Nick Martell]

Speaking of Ferris, Jack, you can breathe easy because the film crew did not actually ruin a real 1961 Ferrari for their famous crash scene. What they actually used was called a kit car with a fiberglass body. Basically a fake. No GTOs were harmed in the making of this movie.

[Jack Crevici Kramer]

And finally, earlier in the story, we talked about Ferrari's famous prancing horse symbol, the Cavallino Rampante. It was gifted to Enzo by the family of of Francesco Baracca, a flying ace who was shot down during World War I.

[Nick Martell]

Now, Jack, I feel like this is where the story comes full circle between my Italian heritage and your German heritage. Because, you know, there's another famous sports car with a prancing horse logo as well.

[Jack Crevici Kramer]

So why do the horse emblems of Ferrari and Porsche look so similar? Well, Porsche's equine symbol is based on the city seal of Stuttgart where Porsches were first made. Made. And Ferrari's horse, well, Baraka painted that symbol on his plane simply because the man loved horses. Before becoming a pilot, he'd been part of the cavalry and he wanted to honor his old regiment.

[Nick Martell]

So what you're saying, Jack, if I hear you correctly, is this was probably just a coincidence?

[Jack Crevici Kramer]

Pretty much. But Ferraris came first. And that is why Ferrari is the best idea yet. Coming up on the next episode of the Best Idea Yet Yet. You're a pepper. I'm a pepper. It's Dr. Pepper.

[Nick Martell]

That's right. We're going to tell you about the number two soda in America, Dr. Pepper. And hey, if you have a product you're obsessed with but you wish you knew the backstory, drop us a comment. We'll look into it for you.

[Jack Crevici Kramer]

And don't forget to rate and review this podcast. Your 5 star rating helps us grow the show.

[Nick Martell]

The best idea yet is a production of Wondery, hosted by me, Nick Martel.

[Jack Crevici Kramer]

And me, Jack Crevici Kramer. Our senior producers are Matt Beagle and Chris Gautier.

[Nick Martell]

Peter Arcuni is our additional senior producer.

[Jack Crevici Kramer]

Our senior managing producer is Nick Ryan. And Taylor Sniffin is our managing producer.

[Nick Martell]

Our producer and researcher is H. Conley.

[Jack Crevici Kramer]

This episode was written and produced by Katie Clark Gray.

[Nick Martell]

We use many sources in our research, including Enzo Ferrari, the Man in the Machine, machine by Brock Yates and GE.

[Jack Crevici Kramer]

Lubering's Enzo Ferrari biography for Britannica. Sound design and mixing by C.J.

[Nick Martell]

Drummler, fact checking by Brian Pognan, Music.

[Jack Crevici Kramer]

Supervision by Scott Velazquez and Jolina Garcia for Freeson Sync.

[Nick Martell]

Our theme song is Got that Feeling Again by Blackilac. Executive producers for Nick and Jack Studios are me, Nick Martel and me, Jack Revici Kramer. Executive producers for Wondery are Dave Easton, Jenny Lack Beckman, Aaron o' Flaherty. And Marshall Louie.

[C]

Every big moment starts with a big dream. But what happens when that big dream turns out to be a big flop? From Wondery and Ill Media, I'm Misha Brown, and this is the Big Flop. Every week, comedians join me to chronicle the biggest flubs, fails, and blunders of all time. Like quibbing.

[Nick Martell]

It's kind of like when you give yourself your own nickname and you try to, like, get other people to do it.

[C]

And the 2019 movie adaptation of Cats.

[D]

Like, if I'm watching the dancing and I'm noticing the feet aren't touching the ground, there's something wrong with the movie.

[C]

Find out what happens when massive hype turns into major fiascos. Enjoy the Big Flop on the Wondery app or wherever you get your podcasts. You can listen to the Big Flop early and ad free on Wondery Plus. Get started with your free trial at wondery.com Plus.