Ferrari’s (NYSE:RACE) New Models to Focus on Hybridization
Ferrari (NYSE:RACE) CEO Sergio Marchionne eyes hybrid technology as a way to sidestep emissions regulations and reach unprecedented sales targets
With its LaFerrari, the only hybrid model in the company’s range, Mr. Marchionne said all Ferraris will rely on hybrid power in some way from Y 2019 forward
Promising a shift in the way Ferraris are manufactured, and with the aim to not only produce more hybrids, but also cars that appeal to a wider demographic, he says the way open to sell possibly in excess of 10,000 cars in Y 2025.
Ferrari is committed to selling 8000 cars this year, the brand’s volume limit currently stands at 10,000 units before it’s subject to fuel economy and emissions requirements higher-volume brands must deal with.
Hybrid technology will help it cope with such regulations.
Mr. Marchionne’s vision for Ferrari as a luxury brand involves expanding its focus beyond vehicles
“But, for now it is easier to generate profits and cash if we stick to cars while at the same time look at the extension into luxury at a more reasonable pace,” he said.
I expect Ferrari to introduced up to 2 new models in the next 2 years and also drive brand extension strategies.
The new models combined with a focus on hybridization, Ferrari could break the 10,000 volume cap.
|NYSE:RACE||53.26||14 November 2016||-1.21||53.57||54.22||53.18||1,007,100|
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