Ferrari considering SUV model to help double profits

13 Agosto, 2017, 14:49 | Autore: Abelardo Magnotti
  • Maserati Electric

An expansion of Ferrari's line-up into utility vehicles would not compromise the Italian carmaker's exclusive status nor its luxury profit margins, Chief Executive Sergio Marchionne said on Wednesday.

So we must assume the clever chaps designing flaws out of embryos have been practicing on Ferrari's DNA first, because it seems Sergio has had a change of heart.

Under the plan, which is likely to be unveiled in early 2018 and could expose the carmaker to stricter environmental regulations, Ferrari will also build more hybrid models to improve its vehicles' efficiency and woo new wealthy buyers, the people said.

But Marchionne said Ferrari was now approaching the limit of the number of cars it can produce from its current range without weakening their exclusive appeal, and needed to look beyond.

"[A Ferrari utility vehicle] will probably happen but it will happen in Ferrari's style", Marchionne said.

Marchionne is popular known for publicly rejecting the idea of a Ferrari SUV previously. It's not clear if it would have two or four doors, but it would apparently be a four-seat vehicle that offers more space than the GTC4Lusso. Part of the plan includes taking the company beyond their self-imposed 10,000 vehicles per year limit, which allowed Ferrari to operate with less strict fuel-economy rules.

Ferrari said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in April-June rose to 270 million euros, in line with a Thomson Reuters SmartEstimate of 271 million euros. A final decision on the vehicle has yet to be made and if it were to arrive, we wouldn't see it until at least 2021.

Ferrari was spun off from FCA's portfolio of brands in 2015, which means it's technically not an FCA brand as Marchionne alluded to with its potential Formula E entrance. Analysts at Mediobanca SpA, UBS Group AG and Bernstein predict deliveries could jump to as high as 15,000 under a new strategy, which Marchionne hinted he was developing during his first-quarter earnings presentation in May.

Meanwhile, boosting output could prompt Ferrari to add a second shift to its factory in Maranello, Italy, its only manufacturing site, the people said.