New Ferrari CEO Benedetto Vigna pushes electric mobility, to unveil EV plan soon

New Ferrari CEO Benedetto Vigna will unveil its EV plan as the automaker promises its first full-electric car in 2025 after presentig four hybrid models, reports Reuters.

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The new Ferrari CEO Benedetto Vigna will unveil its plan on EVs as it heads into the new era of cleaner, silent and electric mobility. Vigna on June 16 will explain how the carmaker will preserve its cachet - and top-tier prices - in a future of electrified cars. That is a particular challenge for the likes of Ferrari, which built its brand over decades by perfecting the roaring and super-powerful engines that drive its cars.

A tech veteran with 26 years of experience in the semiconductor industry, Vigna, who started at Ferrari last September, is tasked with marrying innovation with tradition. "We should expect a clear focus on technology transition, qualifying the key burning question, namely how the company will evolve in this new environment, not only in terms of product portfolio," said Marco Santino, a partner for automotive practice at management consultants Oliver Wyman.

Ferrari has already presented four hybrid models and promised its first full-electric car in 2025. It has said strategic partnerships will be key to accessing new technologies while keeping capital expenditure under control.

The company is expected to reveal the relevant areas for new partnerships, which could develop along the lines of an existing tie-up with Britain’s Yasa, now part of Mercedes, which is supplying technologies for an electric drive for Ferrari’s hybrid models.

The CEO said earlier this year that Ferrari would rely on partners to develop bio and synthetic fuels which could be an additional green option alongside all-electric technology. By announcing its first sport-utility vehicle (SUV), the Purosangue, in the coming months, Ferrari is also moving into a lucrative market segment where competitors such as Lamborghini, part of the Volkswagen group, already operate.

"A key challenge in the mid-term is to maintain best-in-class profitability while supporting a unique effort in developing new technologies and innovative solutions," Santino said. Besides core technology, Vigna has a number of other areas where he could leave a mark, analysts say, including data and connectivity, intellectual property, Formula One motorsports performance, and increased manufacturing complexity.

Ferrari’s range has risen to nine models, plus limited edition cars, in recent years, with six-, eight-, 12 cylinder, hybrid, and soon full-electric engines under production. Investors appear to be keeping the faith. Shares in the company have been almost flat in the past 12 months, versus an 18 percent drop for the European auto index and a 13 percent drop for the luxury index.

Rival Aston Martin lost almost 70 percent over the same period, while Tesla shares were among the few to outperform Ferrari. But Vigna has something to prove.

"A lot is riding on the upcoming Capital Market Day to change valuation parameters for a business which seems to have been on autopilot in recent years and may need a transformational strategy," analysts at Jefferies said.

(With inputs from Reuters)