Ferrari to drive profits with four-seat ‘utility vehicle’

Ferrari is considering adding a roomy four-seat “utility vehicle” as part of a major expansion push beyond its traditional supercar niche in a bid to double profit by 2022, sources said.

The final five-year plan under chief executive Sergio Marchionne, who is set to retire in 2021, will target boosting annual deliveries beyond a self-imposed limit of 10,000 cars, which allows the company to operate with less-stringent fuel-economy rules.

Under the plan, which is set to be unveiled in early 2018 and could expose the carmaker to stricter environmental regulations, Ferrari will also build more hybrid models to improve its vehicles’ efficiency and woo new wealthy buyers, the sources said.

Since taking charge of Ferrari in 2014, Mr Marchionne has been pushing volume, already blowing past an earlier cap of 7,000 cars.

While that approach risks diluting the brand’s exclusive cachet, the 65-year-old is now seeking to dial up that effort to secure Ferrari’s independence as the auto industry grapples with the strains of shifting to electric-powered cars.

Ferrari, which reports earnings later today, is on pace to increase adjusted earnings before interest, taxes, depreciation and amortisation more than 14% to at least €1bn.

The new strategy is likely to include doubling that figure in five years.

The shares have risen 65% this year, valuing the carmaker at €16.8bn. Among projects being evaluated is a four-seat family car that offers more space than Ferrari’s current two-door.

Bloomberg