In light of the IT hacking Team Boss Mattia Binotto says Ferrari (NYSE:RACE) must revisit “the entire car project” he ruled out sackings following a poor start to the F1 season.
The Scuderia have picked up just 27 pts from 3 races so far in Y 2020, not aided by both drivers failing to finish at the Styrian Grand Prix following a crash.
Sebastian Vettel finished a season-best 6th at the Hungarian Grand Prix last Sunday, while teammate Charles Leclerc finished 11th.
Both Ferrari racers were a lap down on winner Lewis Hamilton as upgrades made in Austria failed to have any impact.
Team Boss Binotto is ready to go back to the drawing board cautioning, there is no quick fix.
“After 3 races, it’s clear that we are in worse shape than we expected and we need to react without delay,” Boss Binotto is quoted as saying on the official F1 website.
“The entire car project has to be revised, while taking into consideration the limits currently imposed by the regulations.
“I am well aware there is no magic wand in Formula One, but we have to step up a gear to turn things around, both in the short and the long term.
“It might also be necessary to look at our organisation to improve and strengthen our working methods where the need is greatest. But 1st, as a team, we need to understand the dynamic that led to this situation.”
He added: “It will take a long time for Ferrari to be a major force again. I think patience will be required. The updates we brought in Austria proved correlation, and at the moment, at least we have addressed that, but the deficit in terms of performance is still there.
“We are lacking speed on the straights, lacking speed on cornering. Overall, the car has to be improved in all the areas. It is as simple as that.
“It is not something that a simple trick will address it, or a simple solution or package. It will take time. How long? I do not have that answer yet.”
He insisted Ferrari’s shortcomings will not lead to mass changes in personnel, despite media speculation to the contrary.
“I have confidence in the people who work in the Gestione Sportiva,” he said. “We have started out on a long process that should lead to another winning cycle.
“It will take a while, but the whole company understands and supports this vision. That is why I find it amusing to read some stories that are doing the rounds: it is not by sacking people that you make a car go faster…”
Our overall technical outlook is Bullish in here, as all Key indicators are Very Bullish.
Ferrari finished at 179.19, -2.99 Friday in NY, just shy of its intraday all time highs at 183.50 marked on 22 July 2020.
The Maranello Outfit’s shares were raised to Buy from Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now. The stock is now considered defensive in the sector.
Have a healthy weekend, Keep the Faith!