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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.
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Company president John Elkann comes to Vigan’s aid: “Everything we do will always be focused on the exclusiveness of Ferrari,” he confirmed. “The set of possibilities offered by electrification and electronics will allow us to make even more unique cars.” And Benedetto Vigna confirms the importance he attaches to preserving the aura of the brand: “Ferrari will always refrain from responding completely to demand”, he repeated, taking up a a formula that the founder, Enzo Ferrari, liked to use. “We will maintain the highest level of exclusivity,” he promised again.
Ferrari wants to catch up on Porsche and Rimac when it comes to electric cars
“We think we can use the electric motor to improve the performance of our cars,” said Benedetto Vigna. In fact, specialists know that the vigor of the electric machine (which instantly delivers its maximum torque value) allows lightning accelerations. This characteristic has largely contributed to establishing the image of Tesla cars. Technicians also know that the battery is the weak link of the electric car, which struggles to repeat accelerations and to sustain its maximum speed, due to the heating of the lithium cells.
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Hence the importance of the announcement made by Benedetto Vigna, who reveals on June 16 that Ferrari will invest to “develop and build its own electric motors, inverters and battery modules” in Italy, while subcontracting the components not essential to supplier partners. Ferrari is reportedly aiming for “long-lasting, capable of storing more energy than current conventional batteries” lithium-ion cells.
It is not yet known what form the first purely electric-powered Ferrari will take, but it is almost certain that it will appear within three years. Early enough not to let Lamborghini get too far ahead, since its first electric is expected “before the end of the decade”. On the other hand, Ferrari will arrive too late to pull the rug out from under the Croatian Rimac, who has just presented his car Nevera.
Before the electric Ferrari, a large V12-powered SUV
At the historic headquarters of the Italian firm, in Maranello, on June 16, Benedetto Vigna unveiled the details of his strategic plan for the period which extends until 2026. The one that analysts have observed with curiosity and impatience since taking office. , in September 2021 began by confirming that deliveries of Ferrari’s first SUV will take place “from 2023”. This Ferrari Purosangue (thoroughbred, in Italian) model will be entitled to a “V12 engine”. It will only be officially unveiled only in September 2022, but already a few privileged customers have been able to take the measure of its look and performance, enough for “demand to exceed expectations”, admits Ferrari sales director Enrico Galliera, who describes this SUV as “a 100% Ferrari car, with an iconic engine”.
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The production of another model – this time in an ultra-limited series – should also begin during the year for deliveries “from 2023”. This is the Ferrari Daytona SP3 car, placed in the Icona range which combines modernism and nods to the glorious Ferraris of yesteryear. This ultra-exclusive model will not be the only one to contribute to the turnover that Vigna would like to push to 6.7 billion euros in 2026. Between 2023 and 2026, Ferrari intends to launch no less than fifteen models.
Ferrari, which celebrates its 75th anniversary this year, broke all records in 2021 by delivering 11,155 vehicles (+ 22.3%) and generating 4.27 billion euros in revenue (+ 23.4%). In the first quarter of 2022, deliveries showed double-digit growth, with 3,251 cars (+ 17.3%). Same value of progression over three months for turnover, at 1.18 billion euros in the first quarter. A good omen for the future.
