Just In: Ferrari’s engine saga could be about to take a dark turn with claims in the Italian press stating they have been victims of industrial espionage.
The Big Qs: How and why was Ferrari’s 2019 engine put under such extreme scrutiny?
The Big A: According to Italian publication Corriere dello Sport, the information was obtained illegally by a rival team with The Scuderia’s computer system being breached.
That information then formed the basis for the FIA to launch an official investigation into the engine. The details of the investigation were never made public as the FIA and Ferrari came to a ‘private agreement’ together.
Team Boss Binotto said the private agreement was arranged as the information involved a lot of detail about Ferrari’s Intellectual Property.
He said: “First, there was no clear breach of the regulations. Otherwise we would have been disqualified.
“The reason we do not want to open is simply because whatever we would need to explain is IP, intellectual property to our project, to our power unit and no one in the paddock would be happy to release information on their design and their projects.
“It’s IP, it’s confidentiality, it’s intellectual property protection and that’s the reason why we are not keen to do it.”
Ferrari announced Wednesday that a staff reshuffle has taken place as The Scuderia look to address the darth of performance issues facing them.
A new performance department has been created and is headed up by Enrico Cardile and features input from Rory Byrne who played a significant role at Ferrari as chief designer in the early 2000’s.
The engine dust-up was initiated by Max Verstappen of Red Bull Racing.
Our overall technical outlook is Bullish in here, as all Key indicators are Very Bullish.
Ferrari finished at 183.03, +2.18 Wednesday in NY, just shy of its intra-day 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 day, Keep the Faith!