Ferrari’s new CEO Louis Camilleri unveiled the iconic brand’s latest five-year plan that could be described as doing what it does best while ensuring it keeps an eye on the future.
Camilleri was only recently installed in the top spot after the unexpected passing of Sergio Marchionne laid out a near-term future that revives some of the company’s past, but also keeps the promises Marchionne made.
“Our objectives are ambitious, but they are based on a meticulously constructed model pipeline, our enviable pricing power and appropriate investment levels,” Camilleri told investors.
The company plans to launch 15 new models in the next five years and generate revenue of about $5.8 billion annually by 2022. However, he stopped short of committing to increased production numbers – a significant push by the aforementioned Marchionne – saying only that the company wants to meet the desires of the growing number of wealthy buyers clamoring for Ferraris.
(Ferrari will ride hybrid, SUV to debt-free status. Click Here for the story.)
Last year, the company produced more than 9,000 vehicles, and before his sudden death Marchionne was tracking to increase that number going forward. Camilleri satisfied investors looking to keep up with changing market by expanding Ferrari’s electric-gasoline hybrid powertrain offerings and affirming plans to introduce a high-performance utility vehicle.
Camilleri also sought to temper expectations, saying that Marchionne’s previous target of Ferrari achieving 2 billion euros in earnings before interest, taxes and amortization was “aspirational,” and adjusting the target range to 1.8 billion euros to 2 billion euros, reported Reuters.
(Click Here for details about Ferrari doubling its production levels a year early.)
“I don’t want anyone to think that because there is a new CEO he is low-balling,” Camilleri said. “This is an ambitious plan, but it is a doable one and it is based on a concrete framework.”
One of the keys to growth is Ferrari’s new utility vehicle named Purosangue, or Thoroughbred. With competitors like Lamborghini offering the Urus and others in the segment following suit, Marchionne was almost dragged into the idea kicking and screaming, but a ute is coming, Camilleri confirmed.
(For more about Marchionne’s death, Click Here.)
To assuage concerns about brand dilution, Ferrari will revive some names, such as the Icona series, and bring some of its Formula One magic to those lines to ensure they are more than throwaways, but indeed true throwbacks for a new buyer. The plans also call for a new, yet-named supercar as well as development a V-6 engine for future product.