Hybrid technology is supposed to bring Ferrari continued success from the year 2019. The supercar brand’s CEO Sergio Marchionne sees hybrid power as the gateway to boosting the brand’s profits through increasing sales.
Currently Ferrari delivers about 8,000 cars each year with a projected gradual growth toward 9,000 vehicles by 2019. The supercar manufacturer is not disclosing anything about the years beyond 2019, however it made clear that preserving the brand’s exclusivity is a key priority.
In order to make the brand grow and keep shareholders happy, wide scale use of hybrid technology seems to be the way to go. Ferrari currently has to play by the rulebook that says that if only the brand sells fewer than 10,000 vehicles per year, it is exempt from certain CO2 emission requirements set by regulating bodies.
Marchionne said Ferrari could sell more than 10,000 cars a year by 2025 and that he promises a ‘fundamental shift’ in the way Ferrari produces its cars. Beyond hybrid technology, a range of other electrification components should soon be implemented that further benefit performance.
Since the luxury brand was taken apart from Fiat-Chrysler it seems to be doing very well. Sales are up 8% and quarterly earnings are up as much as 10% in the third quarter of this year. Following yesterday’s statement, the company’s stock price rose by an additional 7%.
Marchionne initially had plans to expand Ferrari’s efforts in the luxury goods industry rather than maintaining full focus on cars, but recently came back from that statement by saying that now the focus should be on vehicles first. The idea is to extend the Ferrari range even further over time and create automobiles that appeal to a larger demographic, example being their recently introduced GTC4Lusso, the successor of the four-seater FF.
“It seems that Ferrari is now considering adding up to two new models to its range over the next four to five years – and it seems this approach is gaining favor over potential brand extension strategies,” said Exane BNP Paribas analyst Stuart Pearson.
This kind of makes me sad. Obviously they want to make more money, so selling cars makes sense, but once they hit 10,000, they won’t be able to take advantage of being exempt anymore and I’m worried the cars won’t be as special anymore.