Italian manufacturer Ferrari is known for its roaring petrol engine sports cars; however, the company is now transitioning to battery-powered vehicles and is ambitious to retain its lead position in the high-performance vehicle market; its chairman and acting CEO John Elkann told analysts, Reuters reported.
Last month, the European Union proposed an effective ban on the sale of new petrol and diesel cars from 2035 as part of its measures to combat global warming, posing a challenge to automakers that have made powerful engines a key selling point.
Recently, the European Union proposed banning the sale of new petrol and diesel engine cars from 2035 to fight global warming. However, Ferrari’s Chairman and acting CEO John Elkann announced their transition to electric vehicles before the EU’s effective proposition.
Although this puts Ferrari in quite a challenging position, the company’s competitive edge is to manufacture powerful engines; however, the carmaker is all set to take this challenge as an opportunity.
“We see the regulation as welcome,” Elkann said, as Ferrari stuck to its main 2021 targets after reporting second-quarter core profits just ahead of expectations.
“The opportunity set by electrification, electronics and other technologies that are coming available will allow us to make even more distinct and unique products,” he said.
The new CEO, Benedetto Vigna, who is also a technology industry veteran, will be aboard from Sept. 1. According to Elkann, Vigna has the potential to establish new partnerships along the lines of Ferrari’s existing ties making the transition smooth. According to him, Vigna would lead the company to the glorious path of success in the years to come.
“We believe that within the industry, and more importantly, outside of our industry, we are going to benefit much from partnerships and joint programmes,” he said.
Ferrari will launch its first all-electric vehicle in 2025. It aims to progress in its future projects through partnerships and joint programmes both within and outside the industry.
The company reported a tripling in adjusted core earnings (EBITDA) for the second quarter of the financial year at 386 million euros ($458 million) as the pandemic restrictions eased. Ferrari also increased its industrial free cash flow guidance for this year to around 450 million euros from around 350 million but left forecasts for net revenues and adjusted core earnings (EBITDA) unchanged.