Enzo Ferrari: The Obsession Behind the Prancing Horse

[00:00:09] Morning folks and welcome to today's episode. It's called Enzo Ferrari, The Obsession Behind the Prancing Horse. Now, I'm not a big petrol head, but as some of you might know, I love Formula One. And I think it's fair to say that at Formula One, it wouldn't be where it is today without Ferrari. So I was really keen to dig into this story of Enzo Ferrari and what a story because he wasn't your typical business guy. Most people, when we think of Ferrari, we think of a Ferrari.

[00:00:39] A company that builds expensive road cars and also happens to race. But for Enzo Ferrari, the road car business, it was secondary. Like those beautiful expensive cars, they were made for one reason only. And that was to fund his obsession with racing. And it was an obsession. Like he valued his engines more than his drivers. He had little time for his family, but he still made time for numerous affairs. He could be charming, funny,

[00:01:09] a brilliant salesmen. But he could also be funny, a brilliant salesman. But he could also be cold, ruthless and very, very difficult. And of course, he left a legacy behind him that really is very hard to match in the business world. And that's why all these factors, why he makes for such a cracking story. Enjoy. So Enzo Ferrari, born February 18th, 1898 on the outskirts of Modena. That's in northern Italy.

[00:01:36] And while Ferrari, it might sound like an exotic name to us, it's actually the third most common surname in Italy. And it means Smith or metal worker, which is exactly what Ferrari's father was. Because his father owned a foundry, employed about 30 people. His mother was a housewife. And Ferrari had one older brother. Now, when Ferrari was 10, his father took him to watch a motor race.

[00:02:00] And the loud engines, the huge clouds of dust, the cars flying past at 80 kilometres per hour. And of course, the hero worship that the drivers received. It made a massive impression on him. As he said, it produced a spark in my heart. But then, in 1916, when he was 18 years old, his father and his brother died within weeks of one another during an influenza outbreak inordinately.

[00:02:29] The family business closed. Ferrari was forced to abandon his technical education. And then, in 1917, he was conscripted into the Italian army during World War I. His main job was shooing mules in the mountains. And there, he contracted pleurisy and almost died. He survived, though. And after recovering, he went to Turin to try and get a job with FIAS. Now, for a bit of context on FIAS, and I'll definitely be doing a few episodes on them.

[00:02:58] Because the business itself, its founder, Giovanni Agnelli, like, it is a fascinating story. So, anyway, it was founded in 1899 by a group of investors that included Giovanni Agnelli. And in World War II, it was transformed into this huge industrial machine. And by the end of the war, it employed more than 30,000 people and was producing 15,000 cars a year.

[00:03:20] Now, that's still really, really small when you compare it to Ford, which, at the same time, was producing 820,000 Model Ts. But FIAS was by far the biggest and the most important car company in Italy. And Turin was becoming the Detroit of Europe. But FIAS didn't give Ferrari a job. And by his own account, this was a real low point.

[00:03:47] He describes how he walked into the freezing Turin winter, went into a park, sat down, and to quote him directly, So, a real, real low point, and understandably so. He eventually found work with a small car company in Milan as a test driver and a mechanic.

[00:04:10] And for a bit of context as well about the car business back then and motor racing at the time, because they were inextricably linked. So, outside of FIAS, which was making standardised cars for the middle classes, northern Italy, it was filled with dozens of small car companies. And they operated almost like high-end fashion houses. The cars were largely handmade and they were very, very expensive.

[00:04:35] And motor racing was central to their success because it gave them a way to prove themselves. So, racing at that time, it meant driving along public roads and up mountains with unreliable brakes, there was frequent tyre failures, almost no safety equipment. But, if one of their cars survived and won, then wealthy customers took notice.

[00:04:59] So, racing for these small car companies, it became their testing department, their showroom, and advertising campaign all rolled into one. And over the next year, Ferrari, he established himself as a good driver. He secured a job as a test driver with Alfa Romeo, which at that time was the undisputed crown jewel of Italian motorsport.

[00:05:23] And then in 1920, when he was just 22, he started his first company, a small coach-building business. Now, he wasn't building coaches. Back then, wealthy customers often bought the engine and the chassis separately and then they'd hire a coach-builder to design and construct the body around them. But Ferrari's timing was terrible because Italy had fallen into this severe post-war depression

[00:05:49] and after struggling for a few years, Ferrari's first business, it folded. But he had maintained a good relationship with Alfa Romeo and by this stage, he was well-connected through racing and he was a natural salesman. So, he secured the rights to sell Alfa Romeos across large parts of northern and central Italy. And this was crucial because not only did Ferrari start making a good living,

[00:06:14] but wealthy customers, they liked buying from someone who actually raced the cars as well. So, the business also gave him a growing network of rich car enthusiasts and these were called gentlemen drivers. So, in 1923 then, Ferrari married Laura and they were going to have one son, Dino. And Laura's been described as fiery, sharp, and their relationship, it wasn't loveless,

[00:06:42] but it was rocky, mainly because of Ferrari's obsession with racing. It left very little room for family life. As he said himself, I should not have married because a man dominated by a passion such as mine can hardly divide himself in half and be a good husband. Now, just two months after his wedding, came a meeting that would give Ferrari its famous and iconic visual identity.

[00:07:08] The black prancing horse that has become one of the most famous logos in the world. So, Ferrari met Count Enrico Baracca and his wife, and their son Francesco, who was Italy's leading fighter pilot during World War I. He'd been killed in 1918 and his plane had carried the image of a black prancing horse. And the countess told Ferrari, Put my son's prancing horse on your cars. It will bring you luck.

[00:07:34] Now, considering he died in the plane, I don't know how lucky it would be, but it obviously did bring him some luck, at least on the racing track. So, Ferrari placed the black horse against a yellow background because yellow is the civic colour of Modena. And that logo, the prancing horse on a yellow background, it's repeatedly been ranked as one of the world's strongest brands. It belongs to that really, really small group of logos, alongside maybe the Nike swoosh,

[00:08:03] Apple, Mercedes three-pointed star. Logos that can be recognised around the world without the company's name appearing beside it. And, yes, while Ferrari came across the prancing horse by chance, placing it on that yellow background and deciding to use it as the car's logo was a very deliberate act, and it underlines what a fantastic marketer Ferrari was. Anyway, back to the early 1920s. Alfa's racing cars were underperforming,

[00:08:33] so the company asked Ferrari to recruit new talent. He travelled to Turin and returned with one of Fiat's leading designers. And this was another of Ferrari's great strengths, recognising and hiring key talent. And in 1924, that designer created the P2, one of the great racing cars of that era, with a top speed of 140 miles per hour. So it dominated races. Now, Enzo was still racing, and after a few victories,

[00:09:03] Alfa Romeo selected him as one of its drivers for the 1924 French Grand Prix in Lyon. And this would be his first time to race the P2 car. So it was a huge opportunity. Ferrari arrived in Lyon, he completed his practice laps, but then he suddenly packed his bags and returned to Italy without any explanation. Now, as for why? Well, one leading Italian racing journalist, he believed that Ferrari had simply become frightened

[00:09:31] and realised that the P2 was beyond him. Because the P2, it demanded a level of bravery and recklessness that Ferrari had never experienced up to that point. And this isn't uncommon when racing drivers get to the very top of the sport. For example, and I did mention this story in my episode on Bernie Eccleston, Christian Horner, the former Red Bull team principal, and those who watched Drive to Survive

[00:09:59] will also know him as the smarmy Mr. Ginger Spice. Well, he'd been a very good driver, but he quits during testing in 1998. And here's how he described the moment he realised that he didn't have what it takes. I followed Juan Pablo Montoya through the high-speed first corner and realised I wasn't capable of replicating his commitment. There was a self-preservation that kicked in and said, this is stupid. So I think, just like Horner,

[00:10:27] Ferrari recognised his own limitations. Now, he did continue to race, but never at the highest level. And so for now, Ferrari just put his energies into expanding his Alfa Romeo dealership and building relationships with wealthy amateur drivers across northern Italy, the gentleman drivers that I mentioned earlier. And these gentleman drivers, you see, they wanted to compete in races, but Alfa Romeo couldn't afford to provide each of them with mechanics, race preparation,

[00:10:57] support at the track. So Ferrari saw an opportunity. In 1929, he set up Scuderia Ferrari as an independent racing team that would effectively sit between Alfa Romeo and the gentleman drivers. And so, just to be clear, he wasn't making his own cars yet. He was using Alfa Romeo cars. And with the money that Ferrari was making from these gentleman drivers now, he could also hire professionals. And these drivers would then win Rager races

[00:11:25] and generate huge publicity for the team. And then, to generate even more money, Ferrari did something that was really groundbreaking for the time. He brought commercial sponsorship into motor racing. So he approached Bosch, Pirelli, and Shell and persuaded them to provide cash, equipment, and technical support in return for the publicity generated by his cars. So, in doing so, Ferrari, he really did effectively create

[00:11:55] the first commercially sponsored motor racing team. And that laid the foundations for the business model that has funded the sport ever since. But, while Ferrari's business model was excellent, the timing was terrible. Because, the Great Depression pushed Alfa Romeo towards bankruptcy. In 1933, Mussolini's government to control the company. Alfa had to close its racing department to save money. But, Ferrari negotiated a deal that allowed him

[00:12:24] to continue running the team independently. Still under the Alfa name. But his budget was now much smaller and Nazi Germany was pouring huge amounts of money into Mercedes and Auto Union, another big car company back then. And they were using their racing victories to showcase their technological power to the rest of the world. Then, at the end of 1937, the now state-controlled Alfa Romeo, it bought Ferrari out. Now, he received a huge amount of money, roughly about $1.3 million

[00:12:53] in today's money and huge for back then. And he also got a salary in benefits worth about $300,000 in today's money because he stayed on as racing director of the team. But, he had lost his independence. Ferrari, he was now answerable to Alfa's management and that just didn't suit his nature. He constantly clashed with them and in 1939, he was fired and he was forbidden from using his name in racing for four years. So, as a result, he opened up

[00:13:22] a new workshop but began building cars under a different name. But then, on June 10, 1940, Italy entered the Second World War and motor racing just stopped. And his business, it was absorbed into the fascist war economy. So, it was producing machine tools and parts for the military. Now, Ferrari himself, he wasn't a fascist but he did join the party for practical reasons really because membership was essential if you wanted to do business. But,

[00:13:52] when it mattered and I think this is really important, his actions, they show not only where his loyalties really lay but they also show his bravery and his morality because he helped save a Jewish lawyer friend from a beating by fascists. When the Nazis occupied northern Italy, he allowed partisans to hide in one of his barns and he allowed his workers to repair rifles for the resistance. Now, outside of business and while Ferrari was really consumed

[00:14:21] with his business, he still managed to find plenty of time for a very active personal life. He was very much a ladies man and he had several affairs throughout his marriage and he also had a pretty twisted or cynical view of women and relationships. Here's a quote from him. When a man tells a woman he loves her, he only means that he desires her. The only total love in this world is that of a father for his son. Anyway, from the 1930s onwards,

[00:14:51] he effectively maintained two families after beginning a long-term relationship with a lady called Lina Lardy and in 1945 they had a son called Piero and Ferrari set Lina and Piero up in a house outside Medina and he visited them as part of his normal daily routine. Now, only a very, very small number of trusted people knew about Piero and he remained outside of the Ferrari family for decades and we'll get on to that. Anyway,

[00:15:20] back to business. When the war ended, Ferrari's non-compete clause had expired so now, eventually, at the age of 48, he was finally able to build a car carrying his own name. He recruited the best engineers and the plan was simple. Build a racing car that would win races because the best marketing is winning and Ferrari would then produce and sell extremely expensive road cars and those road cars would provide the money to keep racing

[00:15:49] because this is the thing about Ferrari. It was all about racing. He described it as a great mania to which one must sacrifice everything without reticence, without hesitation. So, Ferrari's first racing car, it was called the 125 and just two weeks after making its debut, it won its first race. In 1949, it won the three big endurance races back then, Le Mans, the Mille Amiglia and the Spa 24 Hours. Then, in 1950,

[00:16:19] the modern Formula 1 championship was launched and Ferrari won consecutive championships in 1952 and 1953. Now, it should be noted that by now, Ferrari wasn't going to any of the races. First of all, because he hated flying but mainly because he couldn't bear watching his engines being pushed to their limits. As he said, to see them born and to see them die because in a race they are always dying, even if they win,

[00:16:47] it is unbearable. I mean, he's very dramatic. So, he didn't attend the races but they were winning a lot and as I said just a few minutes ago and especially in sports, winning is the best marketing and these victories, they gave Ferrari an enormous international profile and as a result, its road cars began developing this extraordinary reputation but the output was still tiny. Like in 1950, Ferrari produced only 26 road cars.

[00:17:17] By 1954, that had increased to just 86. Now, the average cost of one was about $15,000 and for context, the average suburban home in the US at that time cost $9,000 so it was nearly twice the cost of a house. Now, the scarcity of the cars was, you know, of course, part of the Ferrari allure but also because Ferrari himself was never seen at races and gave very little away about himself and met, you know, very few people.

[00:17:47] This aura of mystery, it grew around him so you had aristocrats, industrialists, Hollywood stars like Steve McQueen, they became desperate to own a Ferrari and to meet the man himself and Ferrari used that mystique brilliantly because prospective buyers were expected to travel to the factory in Maranello and meet him personally and more or less be questioned or interviewed by him

[00:18:16] so simply having the money didn't always mean that he would sell you the car. So Ferrari, he completely reversed the normal balance of power. The customer wasn't deciding whether to buy the car, Ferrari was deciding whether they deserved one. Now, while Ferrari's business was thriving, his personal life around this time fell apart. In 1956, his son Dino died from muscular dystrophy. He was just 24 years old

[00:18:45] and his death, it's fair to say, it devastated Ferrari. He became even more withdrawn and he started wearing these heavy, dark-tinted sunglasses and he continued to wear them for the rest of his life. And more tragedy followed just a year later. So one of the most popular races back then was the Mille Miglia. Ferrari had won it several times. It was this notoriously dangerous thousand-mile road race through Italian towns, countryside,

[00:19:15] mountain passes. Anyway, during the 1957 race, a tyre blew on a Ferrari, the car flew into the crowd, killed the driver, his navigator and nine spectators including five children. The Italian government immediately banned open-road motor racing. The Vatican accused Ferrari of behaving like the god Saturn, devouring his own sons, sacrificing drivers and spectators for speed and glory. And prosecutors then charged Ferrari

[00:19:44] with manslaughter and criminal negligence. The legal case, it lasted for four years and Ferrari was eventually cleared. But, this accusation that Ferrari prioritised winning over the lives of his drivers. It followed him throughout his life and, I gotta say, there's a good bit of truth to it. Like, there was the infamous example of the Italian driver Eugenio Castellotti. He was killed during a test session in 1957

[00:20:14] and staff reported that Ferrari's immediate reaction was to ask about the condition of the car rather than the driver. Nicky Lauda, famous Formula 1 driver who went on to win Formula 1 champion for Ferrari in the 70s, he said the following, Ferrari's only interest was winning. He really didn't care about the drivers. Now, in fairness to Ferrari, when he first got involved in motor racing, the dangers were so obvious and drivers were killed so frequently

[00:20:43] that death was almost an accepted part of the sport. So, I can understand in a way why he became desensitised to it. But, you know, there's being desensitised and then there's caring more about the engine than the man driving the car. So, you know, you've got to question that. And just sticking with his personality, he was, without doubt, a very difficult taskmaster. He described himself as an agitator of men and machines and that's exactly

[00:21:13] how he operated. He deliberately played drivers, mechanics and engineers against one another because he believed the rivalry would push them harder and produce better results. And in the same way that Ferrari had very little compunction about replacing drivers, when it came to laying down his authority in the factory, it was basically his way or the highway. And the clearest example of this came in 1961 in what became known as the Palace Revolt. So, after Dino's death, Ferrari's wife, Laura,

[00:21:43] took to walking through production areas, interfering in decisions and, you know, giving out to employees. And eventually, eight senior executives sent Ferrari a letter demanding that she be removed from the business. In other words, it was her or them. Ferrari chose Laura and fired all eight of them. And these weren't just a few office managers. Like, they included Ferrari's technical director, chief engineer, team manager, like, some of the most important people

[00:22:13] in the company. But, of course, you know, also like most people, there was another side to Ferrari. Those close to him and he did have a lot of close friends. They said he was great company. He spent hours in the bar of the local hotel, chatting, joking, telling stories. And this shouldn't really be surprising because, as I already said, Ferrari had been and was an excellent salesman. So, there was clearly a warm and sociable side to him, but he just didn't show it

[00:22:43] to everyone. Anyway, in 1962, Ferrari unveiled what would become its most celebrated car, the 250 GTO. This is the Mona Lisa of the car world. Apparently, that's what car enthusiasts call it. Anyway, only 36 were built with a price tag of $18,000, roughly $196,000 today. And the GTO, it was a racing car. It won three consecutive World GT Championships, but it could also

[00:23:12] legally be driven on the road. So, it has everything that collectors are looking for. Rarity, genuine racing success, and a design that is regularly described as one of the most beautiful cars ever produced. And look, I'm obviously not a petrolhead because when I look at this, it just doesn't do it for me. Anyway, $18.4 million in 2018, while another one reportedly changed hands privately

[00:23:42] that same year for $70 million. Owners of the GTO include Ralph Lauren, Walmart Air Robert Walton, and Pink Floyd drummer Nick Mason. So now, we're in 1963. Ferrari was building just under 600 cars a year, generating about $7 million in revenue. That's about $76 million in today's revenue. But, the racing side of the business it was becoming more expensive and Ferrari was under huge financial pressure and so he started looking

[00:24:11] for outside investment. Ford came to the table. $18 million for 90% of Ferrari, around $200 million in today's money, and Ferrari was open to the deal. For 22 days, a team from Ford went through Ferrari's finances and eventually the final contract was placed in front of Ferrari himself, ready to be signed. But then, he came across a clause that stated that if the racing team wanted to spend beyond an agreed budget,

[00:24:41] it would need permission from Ford. Now, you think, fair enough, Ford was about to own and pay for 90% of the company, but Ferrari believed he had been promised complete control of the racing team and for him, that really was the only part that mattered. So, right at the last moment, Ferrari declared the clause unacceptable and walked away. Henry Ford II, he was furious because he saw Ferrari's rejection as a personal humiliation,

[00:25:10] and his response was basically, fine, if we can't buy Ferrari, we'll beat them. And they did, because Ford poured millions into building a car specifically to defeat Ferrari at Le Mans, and three years later, the Ford GT40 finished first, second, and third at the race, and that ended Ferrari's dominance of Le Mans. And of course, this story, it's told in a great movie, it's called Le Mans, and for some reason it's also called Ford vs Ferrari, it's got Christian Bale

[00:25:40] and Matt Damon in it, it is a brilliant film, well worth watching. So of course, Ferrari's financial problems continued, he still needed a partner, and so in 1969, he reached an agreement with Gianni Agnelli and Fiat. Fiat paid $17.6 million for 50% of Ferrari, roughly $160 million in today's money, so that valued the entire company at approximately $320 million in today's money. Now Fiat took over the road car business, while Ferrari retained complete control

[00:26:09] of the racing operation for the rest of its life. And with Fiat's money behind it, the road car business now started growing, but the Formula 1 team was struggling. It hadn't won a driver's championship since 1964. So in 1973, a very interesting and influential guy enters the story, Luca Di Montezamola. He's this charismatic Italian aristocrat who would go on to become the most successful executive in Ferrari's history across

[00:26:39] two separate eras. So he was sent to Marinello when he was just 26 years old, and he acted as this bridge between Fiat's corporate suits and the very, very stubborn Ferrari. And they worked brilliantly together. They won the Formula 1 titles in 1975, 76 and 77 with Nicky Lauda as their main driver. And here's another quote from Lauda about his relationship with Ferrari. He was a very egocentric man, absolutely focused

[00:27:08] on his cars, on his ideas, being successful in a brutal way. But in the end, he was an Italian and he had a heart. I had the opportunity to experience this on the odd occasion. But the rest of the time, it was not funny. Now then, in 1978, Ferrari's wife Laura died after 55 years of marriage. And it was only then that he publicly acknowledged his son Piero and gave him the Ferrari name. Now throughout the 1980s, the road car business

[00:27:38] managed by Fiat was growing rapidly. But Enzo remained Ferrari's founder, co-owner and ultimate guardian of the brand. So when it came to develop a car for their 40th anniversary, Ferrari, who by then was in his late 80s, he personally commissioned and approved this brutally fast supercar that was stripped of almost everything that made a road car comfortable. Like no ABS, no power steering, almost no luxury trim. The result

[00:28:08] was the F40. Now they initially planned to build just 400, but demand was so strong that production eventually reached $1311, with a price tag of $400,000. And Ferrari made a rare public appearance at its launch in 1987. He was physically frail, leaning on his assistance, but still wearing those dark glasses. He died the following year at his home in Maranello. And the original 1969 agreement

[00:28:37] with Fiat stated that when Ferrari died, Fiat's ownership would increase from 50% to 90%, while his son Piero inherited the remaining 10%. And Piero is still involved with Ferrari. He's their vice chairman. And as for the company itself, Ferrari delivered 13,640 cars in 2025, generating $7.1 billion in revenue and a net profit of $1.6 billion. Now, on the racing side, which, remember, was always

[00:29:07] Ferrari's real focus and his obsession. The team, it's won eight Constructors Championships and six Drivers Championships since his death. And while it hasn't won a Formula 1 title since 2008, it still is competing at the top end of the championship and it remains by far the biggest name on the paddock. It's the only team to have competed in every Formula 1 season. And its fans, who are called the Tifosi, they follow it all over the world.

[00:29:37] And for nearly every Formula 1 driver, getting the chance to drive the red Ferrari, it remains the ultimate ambition. Because Ferrari, it has something that most brands just can't buy. Legacy, authenticity, tragedy, victory, and history. And almost all of it can be traced back to the personality and the obsession of Enzo Ferrari. And as a person, Ferrari, he comes

[00:30:06] across as cold, ruthless, philandering. So, yeah, he's not an easy man to like. But I think achieving the kind of success reached by people like Ferrari, like Steve Jobs, Elon Musk, Henry Ford, where you don't just build a company, but you leave a lasting legacy, that requires a level of not just focus or commitment, but a level of obsession that very few people have.

[00:30:36] Or maybe we choose not to have it. It's hard to know. I mean, is this type of obsession a choice or a compulsion? I don't know. And look, I would love to leave a legacy like Ferrari. I mean, who wouldn't? We all love business. We all want to build something great. But at what cost? Like not being able to spend as much time as I can with my one wife, no mistresses and fantastic children? Or being so

[00:31:05] obsessed that I'd care more for a stupid car than I would for the life of the person driving it? I mean, for me, that's way too heavy a price to pay. But Ferrari was willing to pay that price in return for achieving greatness in the one thing that truly mattered to him. Anyway, whatever your thoughts on Enzo Ferrari, I think he makes for a fascinating story. And that brings us to listeners

[00:31:35] emails. And this one comes from Eamon who'd love to hear an episode on Chuck Feeney. He's the Irish-American who made his money through duty-free shopping and then very quietly gave away his entire $8 billion fortune during his lifetime, much of it anonymously, while also living a very, very modest life. I mean, he is an incredible man. Thanks so much for the suggestion, Eamon, and for listening. And remember, if you have any comments, any corrections,

[00:32:04] or any stories you'd like me to cover, email me at info at gbspod.com. All the best, folks.