Expect the Ultimate SUV, aka FUV, from Ferrari (NYSE:RACE)
Ferrari’s CEO Sergio Marchionne 1st mentioned in August that Ferrari NV (NYSE:RACE), the Fiat-Chrysler spinoff Mr. Marchionne also leads, would likely build a Ferrari badged sport utility vehicle (FUV).
Monday, CEO Marchionne said that Ferrari will spend about 2.5 years deciding how and how many to produce.
Rolls-Royce and Bentley also have SUV models.
Prices range from $300,000 for the Bentley Bentayga, and $330,000 for the Rolls-Royce Cullinan.
An August motorsport mag report noted: that “we can be pretty confident” that Ferrari would build an SUV based on its GTC4Lusso, a 2 door, 3, counting the back, station wagon, or a similar design. The GTC4Lusso carries a base price tag of $305,000.
Figure a Ferrari FUV to come with an even higher price tag, maybe even more than the Rolls-Royce.
That gives the company an entry into a market that is expected to account for 67 of the auto industry’s expansion through Y 2024.
SUVs are particularly popular in the United States and China, the world’s 2 largest new car markets and high-end SUVs are among the most popular versions.
Such a vehicle would also give a sharp boost to Marchionne’s plan to 2X Ferrari’s profit by Y 2022.
Ferrari’s stock trades in a 52-wk range of 50.39 – 118.10. The consensus 12-month price target on the stock is 109.57. Monday in New York it finished at 114.83, +2.23 (1.98%).
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