It is Official, Ferrari (NYSE:RACE) to Build its FUV
Ferrari (NYSE: RACE) made it official Tuesday, it is developing an FUV, a new model intended to appeal to its clienti who may want a the Maranello Outfit’s version of an SUV.
The Big Q: Is Ferrari throwing away 70 years of hard-won exclusivity for a bottom-line boost?
The Big A: Ferrari says No.
In a briefing for investors at it Maranello HQ Tuesday, Ferrari executives said that the vehicle they have under development is a true Ferrari, with some capabilities that will be new to the iconic Italian Supercar brand.
In fact, they’re so confident that it will be a true Ferrari that they have named the new vehicle “Purosangue,” Italian for “Thoroughbred.”
The Ferrari Purosangue is a car designed for the luxury market, but it is still a few years away from launch, so naturally the company’s executives have not revealed many details yet. But they did reveal a few details during Tuesday’s briefing, and they told us why they believe they need to launch such a vehicle.
Ferrari has come close to the idea of an FUV with the GTC4Lusso, an AWD model with seating for 4 adults.
“I abhor hearing SUV in the same sentence as Ferrari,” CEO Louis Camilleri said. “It just does not sit well with our brand and all that it represents. And that iswhy this vehicle we will produce will be unique in so many ways and will redefine expectations. Unmistakably Ferrari, with features that have never been seen before.”
CEO Camilleri said that as a die-hard Ferrari fan, he was skeptical when he first heard about the project. But now having seen the concept, he’s a “hugely enthusiastic supporter.”
Below are the Key details that he revealed about the Purosangue during the investor briefing Tuesday:
- It will seat at least 4 adults.
- It’ll use Ferrari’s front-engine, rear-drive vehicle architecture with AWD.
- It may have 4 doors.
- It will have a suspension that can be raised and lowered as needed.
- It will offer “revolutionary accessibility and state of the art comfort on board.”
- It will come to market sometime in Y 2022.
- It will be a gasoline-electric hybrid.
Ferrari has been working with hybrid technology for several years, not only with road cars, but in racing, its current F1 race cars are hybrids.
The Purosangue will be just one of several new supercars to use hybrid drive-trains. Ferrari believes that, when properly implemented, hybrid drive-trains can improve performance and enhance the driving experience, while reducing fuel consumption.
Ferrari promised that the Purosangue will have the best performance in its segment, and be the most “fun to drive” as well.
The Big Q2: Why is Maranello intent on building an FUV?
In short, the company aimsto roughly double its adjusted earnings before interest, tax, depreciation and amortization (adjusted EBITDA), from $1.18-B to $2.2-B in 2022. It will make that mark by increasing both its revenue and its profit margins, and it plans to do that by offering a series of new products.
The firm believes that it has something very special and unique to offer its clienti in the US and China seeking a high-performance vehicle that is also a sport utility vehicle.
I have been a Ferrari fan and owner for over 50 years, I believe the Purosangue will be all that Ferrari wants it to be.
|NYSE:RACE||137.29||20 September 2018||1.48||135.87||138.09||135.72||639,700|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Bullish (0.31)||Bullish (0.35)||Bullish (0.36)||Neutral (0.22)|
Have a terrific weekend