Company
Maserati
TL;DR
Italian luxury car manufacturer that serves as a cautionary example of diluted signaling.
Italian luxury car manufacturer that serves as a cautionary example of diluted signaling. Under Fiat Chrysler ownership in the 2010s, Maserati attempted Ferrari-equivalent luxury positioning while increasing production from 6,000 to 42,000 units. The Ghibli started at $75,000 but shared platforms with the $30,000 Dodge Charger.
The market detected the dishonest signal immediately. Three-year-old Maseratis lost 60% of value versus 30% for Ferrari. By 2019, Maserati was cutting production because the scarcity signal had been diluted beyond repair. You cannot fake scarcity and claim luxury.
Cautionary Notes on Maserati
- Signal dilution through volume increase destroyed brand value
- Shared platforms with mass-market vehicles undermined luxury positioning