Ferrari’s (RACE) CEO, Benedetto Vigna, said on Monday the Italian luxury sports carmaker’s so-called e-building will be ready next summer. Although Ferrari’s first EV isn’t due out for at least another two years, Vigna claimed he doesn’t expect to see margins shrink.
Ferrari CEO says margins will be maintained with EVs
Speaking at Bloomberg’s Italy Capital Markets Forum, Vigna said during an interview, “We will be ready in June 2024” regarding the company’s new electric supercar factory.
The new e-building in its hometown of Maranello, Italy, is designed for manufacturing electric motors, inverters, and batteries in addition to an assembly line for EVs and hybrids.
Although Ferrari’s first purely electric vehicle isn’t scheduled to be released until the fourth quarter of 2025, Vigna denied the automaker was a laggard when it comes to electrification. The Italian luxury automaker’s leader recently reiterated that Ferrari would continue building ICE cars as part of its heritage.
Ferrari currently offers four hybrid models but has been slower than its peers to embrace fully electric technology, citing the need to support its current buyers.
For example, after revealing the all-electric Taycan in 2019, Porsche says the electric sports car is due for a “very steep” production ramp this year as it irons out supply chain issues.
Porsche is confident it will hit its 12% to 14% EV sales share market this year ahead of Macan EV sales slated to start next year and an electric Cayenne model the following year. The automaker also aims for a high-performance electric SUV to sit above the Cayenne as part of its strategy to increase operating margins by over 20%.
Interestingly, Vigna also stated during Monday’s interview he doesn’t expect to see margins fall with new EV models. Vigna also said Ferrari is not interested in buying or partnering with other sports carmakers.
Ferrari expects electric models and hybrids to account for 60% of its product offering by 2026, while by 2030, it aims for 40% pure electric, 40% hybrid, and 20% ICE.
With an operating profit margin of 26.9% in the first quarter of 2023, Ferrari is among the highest in the industry due to their premium prices.
However, as many legacy automakers have realized, transitioning from gas vehicle production to EVs can be costly without the proper supply chain in place. Ferrari’s CEO is confident it will be able to maintain margins through the transition.
Analysts have raised concerns about Ferrari’s slow transition in the past. Last year, Citi analysts said they expect “structurally higher investment to drag on returns,” while Jeffries mentioned in a note last May, “Ferrari has looked a bit less exceptional in recent years, with returns coming off peaks and competitors raising their game.”
When Vigna took over the helm of Ferrari in 2021, coming from semiconductor giant STMicroelectronics, many believed he would steer the automaker in a cleaner direction.