The new Ferrari driver presses the accelerator fully. CEO Benedetto Vigna promised on Thursday to increase the luxury sports car manufacturer’s sales to 6.7 billion euros by 2026 and to almost double gross operating profit (EBITDA). This will be necessary to fund investments in electric vehicles where the Prancing Horse You have to catch up on lost ground. Success will likely depend on convincing Ferrari’s exclusive millionaire clientele to pay even higher prices than they do today.
Vigna’s new business plan promises to take Ferrari worth €33 billion into a greener world over the next decade. The 75-year-old Italian company, which has built its fortune on the roar of its high-performance internal combustion engines, won’t unveil its first fully electrified model until 2025, much later than rivals like Porsche. To get there, Vigna plans to invest around 4.4 billion euros by 2026, more than the 3.6 billion euros spent under the plan of his predecessor Louis Camilleri. Vigna is also building a new plant in Maranello to develop and assemble electric motors.
However, to fund this ecological transition, some polluting cars are still needed along the way. In 2026, electric cars will account for just 5% of Ferrari’s products, before reaching 40% in 2030, according to Vigna. The success of its other models, including the Purosangue SUV, will be key to increasing revenue at the rate of 9% per year that Vigna aims to achieve.
That probably means higher prices. According to calculations by Breakingviews, Ferrari achieved an average turnover of 320,000 euros per car in 2021 with just over 11,000 vehicles sold. Vigna’s new plan envisages that vehicle sales will increase by 2 billion euros to around 5.4 billion euros by 2026, with the remainder coming from sponsorships and engine sales. If Vigna increases annual production to 13,500 cars, it will have to charge an average of 400,000 euros per car, an increase of 25%.
This surge seems difficult to digest, especially in times of higher interest rates and falling stock markets. However, if Vigna can sell 500 supercars, each of which can cost two million euros, it would be enough to sell another 12,000 cars a year at just 367,000 euros each to reach 5.4 billion euros in vehicle sales. . And Ferrari still only serves 0.3% of the world’s 26 million ultra-rich customers. As long as they are willing to keep paying for theirs gas guzzlerVigna’s green turn seems doable.
FOR MORE INFORMATIONS: BREAKINGVIEWS.REUTERS.COM The authors are columnists for Reuters Breakingviews. The opinions are yours. The translation is the responsibility of EL PAÍS
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