Ferrari plans to launch 15 new models by 2022 and intends to “significantly” increase the retail prices of its entire product lineup. The firm has delayed the long-awaited hybrid SUV by a couple of years, tempering the former CEO Sergio Marchionne’s more ambitious goals.
Ferrari now aims to earn between $2.1 billion to $2.3 billion before interest, tax, depreciation, and amortisation, current CEO Louis Camilleri told investors on Tuesday. The company will start selling the “Purosangue” – meaning thoroughbred – by the time it reaches the targetted earnings bracket.
The five-year-plan represents a modest toning down of the goals of former CEO Sergio Marchionne who passed away in July. Marchionne said in February that the Italian company was targetting $2.3 billion in EBITDA no later than 2022, while also promising the aforementioned SUV would hit the roads by 2020. It is now up to Camilleri who is a former cigarette-company executive to prove to the investors that he can keep Ferrari riding on the same momentum without the former legendary chief.
While unveiling the Maranello-based manufacturer’s plans of electrifying half of its lineup, Camilleri said the profit goal is “ambitious but doable”. The development of the firm’s first-ever SUV goes to show how even Ferrari which is synonymous with high-performance petrol-powered cars has to bow down to current market trends in pursuit of its financial goals. The SUV is being delayed to “get it perfect,” said Camilleri.
Ferrari aims to install a hybrid powertrain in about 60 percent of the car it produces by 2022. For purists worried about where the company was heading, the firm also showcased the carbon-fiber clad, 810hp Monza with a V12 engine in one-seat and two-seat versions. The Monza may be out of reach for the vast majority of people, wealthy or not, due to its limited-edition status, but it is still an important product for carmakers like Ferrari and rivals like Lamborghini.
Cars like these solidify the image of the parent company’s extreme-performance credentials, creating a buzz among prospective customers and fans alike. Special edition cars also rake in huge margin for the company which is even higher than the standard serial-production models which are already expensive. The Monza is heir to the iconic Barchetta according to Ferrari. The price will be revealed at the Paris Auto Show in October and will likely be north of a million dollars, just like those of previous special edition cars. All the units of the Monza have already been earmarked for some of Ferrari’s most loyal clients who got a preview of the car Monday night.
Between 2019 and 2022, Ferrari will launch 15 new models and increase retail prices “significantly”, according to head of sales Enrico Galliiera. In a break from tradition (or rather return to heritage), V6 engines were also announced at the investor meeting. As for the Purosangue SUV, it will compete against already existing high-performance luxury offerings – Lamborghini Urus, Rolls-Royce Cullinan, and Bentley Bentayga. A notch below these gargantuan SUVs, Maserati offers the Levante, Jaguar markets the F-Pace, Land Rover makes the iconic Range Rover, while Mercedes-Benz’s recently updated G-Wagen commands a luxury price tag despite its rugged, basic appearance.
Ferrari was careful not to tag the Purosangue as an outright SUV. “I abhor hearing SUV in the same sentence as Ferrari,” Camilleri told investors at the meeting in Maranello, Italy. “As a die-hard Ferrarista, I was a little skeptical when the concept was first voiced at the board. Having now seen the wonderful design and the extraordinary features, I am a hugely enthusiastic supporter.”