Ferrari Plans to Double Earnings by 2022
The brand hopes to achieve this with hybrids, special editions, and, of course, a crossover.
Hoping to continue its momentum from 2017, Ferrari is reportedly planning on doubling its core earnings to 2 billion Euros (about $2.5 billion) by 2022 and becoming debt-free by 2021. The Italian brand plans on achieving this by relying on continued demand for supercars and by introducing more hybrids as well as an SUV
It’s a little more complicated than just selling a lot more vehicles. As Reuters reports, CEO Sergio Marchionne isn’t expecting to double earnings by doubling deliveries, but rather by boosting profits through higher transaction prices via a customization program, new special editions, and aforementioned new models. “We are absolutely convinced that these numbers are doable,” Marchionne told Reuters. “The house is firing on all cylinders, we are in a good place.”
The idea of moving Ferrari downmarket a bit is something Marchionne has been mulling over for a while and it sounds like it’s still in his head. According to the report, Marchionne said that “downsizing engines was a possibility in the future as long as Ferrari’s uniqueness is preserved.”
We can expect new hybrid Ferraris starting in 2019 and, last we heard, the Ferrari crossover is set to arrive in 2020. We don’t know much about it yet, but it’s understood that it will be classified as an FUV (Ferrari Utility Vehicle) and it will have four doors, but the rear doors will be hidden. It sounds like it will be made more for the track than for mountain climbing, so it’s hard to say how closely the FUV will compete with the Lamborghini Urus.
Sergio Marchionne famously makes lofty predictions about his brands all the time, but this one might actually be his most realistic. Ferrari saw an 18 percent rise in earnings in 2017 and, for better or worse, a crossover is the surest way to keep up that momentum.