Ferrari Looks To Double Earnings By 2022 By Jumping On The SUV And EV Bandwagons
New models look like they are just over the horizonby Jonathan Lopez, on
Ferrari is looking pretty good at the moment, posting solid numbers across the board. However, the brand hopes to pull down substantially higher earnings in the next four years, and will look to previously taboo segments to do so.
Continue reading for the full story.
The Full Story
One approach would be an increase in volume, but a move like that would damage the brand's exclusive image. Instead, Ferrari will step into uncharted territory with new technology and new segments.
Ferrari shoved off from mothership Fiat Chrysler about two years ago with an IPO that ended up performing extremely well for the automaker. Sales are up and the money is pouring in, with the brand posting adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) in 2017 at 1.04 billion euros ($1.3 billion at current exchange rates), which is more or less in line with expectations. However, that isn’t stopping the brand from reaching for more, as the Prancing Horse recently announced its intentions to achieve 2 billion euros (roughly $2.49 billion at current exchange rates) in core earnings by at least 2022, giving it just four years to double the numbers from its current figures. It also hopes to become debt-free a year prior.
Models like the 812 Superfast and GTC4Lusso helped contribute mightily to Ferrari’s success this year, and it’s looking like continued demand for the brand’s supercars will help pad the bottom. However, in order to achieve the goal of doubling its earnings, it’s gonna need something more.
One approach would be an increase in volume, but a move like that would damage the brand’s exclusive image. Instead, Ferrari will step into uncharted territory with new technology and new segments.
There was a time when Ferrari said it would never create an SUV, but then again, there was a time Enzo said that aerodynamics were for those who couldn't build a proper engine, and look where we're at now.
First up is a Ferrari SUV, which is due out in the next few years. While the purists will consider such a monster to be blatant sacrilege, it’s looking like an inevitability at this point. There was a time when Ferrari said it would never create an SUV, but then again, there was a time Enzo said that aerodynamics were for those who couldn’t build a proper engine, and look where we’re at now.
Hybrids and all-electrics are also a distinct possibility. Ferrari already crossed the line of the former with the LaFerrari, and with high-end performance models powered by batteries already flooding the market, an EV Prancing Horse is a distinct (and probable) possibility.
“Whenever Ferrari does express itself in a fully electric vehicle, it will do so by making sure that both sound and handling are reflective of Ferrari's heritage,” Marchionne explained.
Of course, each of these possibilities would require the right touch to pull of. In a conference call to analysts, Ferrari’s CEO, Sergio Marchionne, says any SUV from the brand would maintain the essential Ferrari sensibilities, as opposed to boasting about “being able to climb rocks.” It would also be highly exclusive, and only be offered to “the selected few.”
The same is true for a possible all-electric supercar. “Whenever Ferrari does express itself in a fully electric vehicle, it will do so by making sure that both sound and handling are reflective of Ferrari’s heritage,” Marchionne explained.
Either way, expect all Ferrari’s to still be built in Maranello, although extra shifts will be added to help bolster production.
In addition to the new segments already mentioned, Ferrari will continue to offer a plethora of special edition models, while also offering more in-depth customization services.
What do you think? Should Ferrari step into the all-electric and SUV segments? Let us know your thoughts in the comments.
Read our full speculative review on the 2021 Ferrari All-Electric LaFerrari Successor.
Read more Ferrari news.