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| Ferrari promises more unique electric cars |
Ferrari aims to produce two-fifths of its fully electric cars by 2030 as the luxury brand seeks to solve the need to reduce emissions through the ingenuity of conventional engines.
These goals included several goals, including the commitment to increase dividends and repurchase shares, which the company announced during the investor's day at its headquarters in Maranello, northern Italy.
Announcing the new business plan, Ferrari CEO Benedetto Vigna said that luxury sports car maker Ferrari has always produced a car less wealthy customers wanted to keep private when switching to electric models.
Vigna confirmed that the automaker plans to launch its first electric model in 2025. According to his plans, approximately 40% of its sales will be electric by 2030. Another 40% will be hybrid engines and 20% conventional combustion engines.
Currently, only 20% of sales are hybrid cars, and Ferrari does not have all-electric models. The company expects electric vehicles to account for 5% of its sales by 2025 and 40% by 2030. It also develops and manufactures its own electric motors, inverters, and battery cells for electric vehicles.
"I think the internal combustion engine has a lot to offer," the CEO told Investors. We have to deal with emissions regulations. Above all, we see electricity as a tool and technology that can improve our productivity at work.
The Italian luxury brand wants to be climate neutral by the end of the century. "Everything we've always done has always been about being a Ferrari," said CEO John Elkann. The combination of electrical and electronics capabilities allows us to build even more unique cars.
Ferrari has plans for electric cars
Besides its ambition to offer an all-electric model, the company said profits could reach between €250 billion and €2.7 billion this year, up from €1.5 billion last year. It's also targeting a profit margin of 38% to 40%, up from 35% last year.
Payments to investors will also increase from 30% of the group's adjusted net income last year to 35% this year. The automaker also plans to buy back nearly 2 billion euros of stock by 2026.
The electric car uses Scuderia Ferrari's technology, including its electric motor and its understanding of how to reduce power loss.
With bans on gasoline cars looming in Europe and China, major automakers have pledged more than $250 billion to transition to electrification by 2025.
As with other sports car manufacturers, Ferrari's challenge goes beyond the huge investment required to develop electric models that can match their gasoline predecessors in terms of performance. Existing EV batteries cannot provide long-lasting power for sports cars with internal combustion engines.
The famous Italian car manufacturer offers its wealthy customers an emotional experience centered around the roar of a powerful engine. Customers love Ferrari cars. Evidenced by the long history of orders for cars with a price tag of about 200 thousand euros.
In the path of electric sports cars, Ferrari needs to ensure that its wealthy customers and investors share its vision for the future.