Ferrari promises that the electric will not affect its profitability

Ferrari promises that the electric will not affect its profitability

For the Ford Motor Company, it’s a cold shower. The number two American who congratulated himself on having been able to negotiate the turn towards the electric car would almost come to regret the craze for his Mustang Mach-E. Because the success of this electric car is costing him more than expected. Its profit margins – already low by nature due to the cost of the battery – are affected by the rise in the price of raw materials. CFO John Lawler has just admitted this at the Deutsche Bank Global Automotive Conference, revealing that “the meager profits generated by the Mustang Mach-E when it launched in 2020 have since been erased. ”. Hard.

The challenge for Ferrari is to preserve its identity and its profitability despite its switch to electric

This gives a particular flavor to the oath made on June 16 to investors by the new general manager of Ferrari, Benedetto Vigna. He promises that the forced conversion to electric will not affect the insolent financial profitability of Ferrari. The amount of investments planned by Vigna (4.4 billion euros to design electric and hybrid models which will provide 60% of sales in 2026, then 80% by 2030) worries investors, to the point of causing a slight inflection of the Ferrari share price on the stock market.

Read alsoWhy Ferrari recruits its boss in electronics, not in the car


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