Managing Director Benedetto Vigna has confirmed that Ferrari will launch its first electric model in 2025, one of 15 new models between 2023 and 2026.
Ferrari CEO Benedetto Vigna poses for a photo as Ferrari unveils new long-term strategy
Electric and hybrid models are expected to account for 80% of Ferrari sales by 2030, the luxury automaker told investors on Thursday, promising to produce “even more unique” cars as it relies on partners to make the costly switch to zero-emission driving.
“Everything we do will always be about being quintessentially Ferrari,” said chairman John Elkann as the company unveiled its new business plan. Electrification “will allow us to make even more unique cars”.
To reduce investment, Ferrari will use suppliers for components or software that are not crucial, such as an operating system, said chief executive Benedetto Vigna.
Like other sports car manufacturers, Ferrari’s challenge goes beyond simply investing in electric models to deliver high performance – today’s electric vehicle (EV) batteries cannot match the power. supported by combustion engine sports cars.
Like its rivals, Ferrari also sells an emotional experience to wealthy clientele focused on the throaty roar of its mighty engines. As it goes electric, Ferrari needs to make sure its wealthy customers and investors are on board.
Standing out in the slew of electric vehicles hitting the market that can all accelerate quickly could be tough for the Italian automaker, whose cars start at around 210,000 euros ($219,282.00).
Meanwhile, Ferrari will unveil its first-ever sport utility vehicle – powered by its trademark gas-guzzling 12-cylinder engine – in September.
Vigna has confirmed that Ferrari will launch its first electric model in 2025, one of 15 new models between 2023 and 2026.
Ferrari predicts fully electric cars will account for 5% of sales in 2025 and 40% in 2030. Hybrid models are expected to reach 55% of sales in 2025 from 20% in 2021, before dropping to 40% in 2030.
Vigna said Ferrari would develop its own electric motors, inverters and battery modules on a new assembly line at its factory in Maranello, Italy, while outsourcing non-essential components.
To save money, Ferrari will not develop an operating system for electric vehicles. By contrast, other automakers, including Tesla and Mercedes, say proprietary operating systems to run cars, manage wireless upgrades and collect data about drivers’ habits and preferences are crucial.
“I would never build a Ferrari operating system, I would be stupid,” Vigna told investors. “You have to focus on the areas where you can be the best.”
Ferrari is working with four partners in Europe and Asia on battery components to research the next generation of high energy density solid-state batteries.
Ferrari said it would invest 4.4 billion euros by 2026, while making a base profit of 2.5 to 2.7 billion euros that year. Ferrari’s current guidance for 2022 calls for adjusted core profit of 1.65-1.70 billion euros.
The automaker forecasts cumulative free cash flow of 4.6 to 4.9 billion euros from 2022 to 2026.
In a client note, Kepler Cheuvreux analyst Thomas Besson said Ferrari’s financial forecast sent a “clear bullish signal”, while noting that executives were avoiding questions about production volumes.
“But the direction is clear,” Besson wrote. “Electrification is necessary but will not change the UKTN of the company and its products.”
($1 = 0.9577 euros)
(Reporting by Nick Carey and Giulio PiovaccariEditing by Mark Potter and Jane Merriman)
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