Paving Its Future: Ferrari Unveils Wide-Ranging New Plans

Ferrari is paving its way to future growth with a look to its roots.

Ferrari is paving its way to future growth with a look to its roots.

The company’s new CEO, Louis Camilleri, unveiled a new business plan Tuesday that includes reviving iconic models and embedding them with Formula One technology.

Significantly expanding Ferrari’s electric-gasoline hybrid powertrain offering and affirming plans to introduce a utility vehicle that hews to the brand’s performance levels, Camilleri laid out his ambitions for a company he took over only in July following the death of long-time CEO and chairman Sergio Marchionne.

“Our objectives are ambitious, but they are based on a meticulously constructed model pipeline, our enviable pricing power and appropriate investment levels,” Camilleri told investors.

Under a five-year plan, Ferrari is planning to launch an unprecedented 15 new models, targeting revenues of around 5 billion euros ($5.8 billion) by 2022, up from 3.4 billion euros last year. Camilleri refused to set production forecasts beyond this year’s 9,000 units but made clear the automaker was targeting an expanding pool of wealthy customers for growth, especially in China.

The plan also forecasts profit margins of 38 percent — reaching the levels of super luxury producer Hermes, a long-held goal of Marchionne, who died suddenly in July before he could outline his plans for Ferrari.

In his first outing with the financial community during an earnings call six days after being named CEO, Camilleri triggered some temporary jitters when he said his predecessor’s target of Ferrari achieving 2 billion euros in earnings before interest, taxes and amortization was “aspirational.” Camilleri is now targeting socalled EBITDA of between 1.8 billion euros to 2 billion euros.