Maserati Hits 90, Looks Ahead

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Don’t let the doors fool you.What does a sports car have in common with penicillin? That was a question a lot of folks were likely wondering as they strolled through Milan ’s central piazza a few weeks back, the square overrun with Maserati coupes, convertibles, and sedans. Each car featured a graphic display celebrating a historic event from the past nine decades — a period just happening to coincide with Maserati’s own, 90-year history.

Forgive the automaker for rushing to celebrate a birthday that actually falls in December, but even in Italy , winters can be harsh. And simply still being around is good cause for a party at a company that seemed, not all that long ago, headed for the automotive rubbish heap, alongside other once-vaunted nameplates like Packard and Hispano-Suiza.

It’s an improbable comeback, and not Maserati’s first, for that matter. This time, with the engineering skills and plentiful cash of Ferrari, its longtime rival and now parent, the Italian automaker is making a bid to re-establish itself as a stylish alternative to more mass-market luxury brands like Jaguar, Mercedes-Benz, and BMW. It’s a long shot, but a well-funded one.

Troubled times

Maserati has a long, proud — and troubled — history. Founded in 1914 by the four brothers who gave the marque their name, Maserati enjoyed a fearsome reputation on the racetrack during the first half of the 20th century. Piloted by the likes of the legendary Juan Manuel Fangio, Stirling Moss, and Phil Hill, its cars captured a procession of Grand Prix championships, as well as two pre-war wins at the Indianapolis 500.

After its racing efforts literally came to a crashing close following the cursed start of the 1958 season, Maserati shifted focus to production cars, producing a procession of sought-after sedans, coupes, and cabrios featuring incredible engines, tight suspensions, and some of the best bodywork ever to flow from such trend-setting design studios as Pininfarina and ItalDesign.

Yet despite its success with the critics, this was a company plagued by endemic financial problems. And since the Maserati brothers were forced out in 1938, a procession of owners sadly learned that investing in Maserati was a quick way to turn a large fortune into a small one.

Leach takes the helm

Among the many who tried to break the jinx was the eccentric entrepreneur and former racer, Alessandro de Tomaso, who took control in 1975, ensconcing himself in the rustic Canal Grande Hotel not far from Maserati’s crumbling assembly plant. Legend has it that de Tomaso arrived in Italy after being forced to flee his native Argentina after a nasty little civil war. He had chartered a DC-3 and then started kicking bombs out of the back. Unfortunately for de Tomaso, his side lost. Initially, his tenure was marked with success, thanks to the introduction of the Biturbo, a twin-turbocharged sports car considered one of the fastest vehicles of its day. But de Tomaso’s tight-fisted management and a series of dubious business ventures led the company into yet another crisis. Perhaps the biggest blunder was the decision to team up with Chrysler in an abortive effort to produce a reasonably priced roadster, the dubious TC by Maserati. By the time it reached market, the project was so far over budget there was no way to pull it back into the black. And the cars were so roundly condemned by critics they quickly vanished from the market.

But there were plenty of other problems: abysmal quality and uncertain reliability. It was said that a wise owner kept two Maseratis on hand, one to run, the other for parts. Not surprisingly, sales collapsed, especially in the U.S. market, its largest. In 1990, bordering on collapse, Maserati pulled up stakes and went home. And there the story might have ended if it weren’t for the financially sound Ferrari. With that company’s support, “There’s a viable, sustainable opportunity for a company the size of Maserati today,” insists CEO Martin Leach.

The basic plan is simple: share design and engineering resources with Ferrari to produce an assortment of different body styles and powertrain packages. Target buyers who want something a bit more exclusive than a Mercedes SL or BMW 7-Series. And sell about 10,000 cars a year.

But the former Ford Motor Co. executive, who joined the Italian automaker as CEO earlier this year, has no delusions about the difficulties ahead, and has been subtly shifting the strategy that has been in place since Ferrari acquired its cross-town competitor seven years ago.

Niche itch

Distinctive, low-volume products, such as the new GranSport, are critical, says Leach, but he wants to put more of an emphasis on “the relationship between client and company, pushing to build a one-on-one relationship with the customer.”

Exactly what the means Leach admits he’s still trying to define, though it will put even more of an emphasis on individuality, allowing an owner to become “members of an exclusive club, beyond just owning something luxurious.”

Getting there won’t be easy. There’s still a bit of what Leach calls a “hangover.” Buying a Maserati was long an exercise in masochism, requiring buyers to accept constant quality problems. That’s an especially serious problem in the U.S. , which is expected to be Maserati’s single largest market. But so far, American buyers are proving to be a forgiving bunch; they’re expected to buy 2000 cars this year, more than a third of Maserati’s total production.

The U.S. market is likely to have a significant influence on the Maserati lineup, and Leach admits he is considering some unusual steps to appeal to potential buyers. “I wouldn’t do an SUV by the strict definition,” he hints. But something similar could be in the works, something “with more space and practicality” than the traditional Maserati sports car. “You could call it a crossover.” The Kubang, a 2003 concept vehicle, offers a hint of what might be in the works.

It would be a risky move, but then again, this has been a company wedded to risk ever since the Maserati brothers first took their cars to the track. Maserati has shown a surprising agility to survive crisis after crisis, but few believe the company will last if it doesn’t deliver on Ferrari’s expectations. The 90th anniversary marks a critical point in the Italian automaker’s history. Now it needs to prove it can make it another 90 years.