Ferrari plans 15 new models, including hybrids, a utility vehicle and special editions in its drive to hit a softened but still exacting mid-term earnings target. The Italian supercar maker shifted to an adjusted core earnings forecast range of 1.8-2.0 billion euros ($2.1-2.3 billion) by 2022, rather than the doubling to 2 billion promised by late Ferrari boss Sergio Marchionne.
Ferrari has also revealed that they will launch a crossover by the end of 2022 and call it the Purosangue (Italian for thoroughbred). However, Ferrari is not very keen on calling the new product as SUV and want to call it a crossover. CEO Louis Carey Camilleri said - "That word, I do not want to hear it in the same phrase as Ferrari."
At the event, Ferrari unveiled a pair of open-topped, limited edition sportscars, as part of a new segment dubbed "Icona" inspired by past Ferraris but boasting the latest technologies to reward its most loyal customers.
It also promised to expand its range of so-called GT vehicles that focus more on style and the driving experience rather than extreme performance to lure new customers. Ferrari ruled out a self-driving model, but added that its much-debated utility vehicle would come by the end of the plan, two years later than initially forecast.
Camilleri and his team outlined a plan to show how a brand known for its racing pedigree and roaring combustion engines will shift to making a utility vehicle and hybrid cars and boost margins to more than 38 percent without sacrificing exclusivity. The company increased its dividend payout ratio and announced a 1.5 billion-euro share buyback plan, while its marketing chief promised a "significant increase in average retail price".
Marchionne had orchestrated Ferrari's spin-off from parent Fiat Chrysler, positioned it as a luxury brand rather than a carmaker, and managed to do what few thought possible: sail through a self-imposed production cap of 7,000 cars a year without sacrificing pricing power or its exclusive appeal.
A total of 3.6 billion euros will be spent over the period to develop new vehicles and shift towards hybrids, aiming to remain compliant with gradually tougher emissions regulations. The company said hybrid vehicles would make up around 60 percent of its product mix by the end of the plan, while a smaller six-cylinder engine would be added to its lineup of internal combustion engines.
With Inputs From Reuters
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