Ferrari considering SUV model to help double profits

Ruben Hill
August 3, 2017

On Tuesday, Bloomberg reported the carmaker was planning on adding such a vehicle to the lineup in a bid to double the company's profits by the year 2022; that report followed one from auto last month, in which the British publication said Ferrari is developing a high-riding four-door coupe code-named F16X in parallel with the GTC4Lusso's replacement. Marchionne has already said that most Ferraris beyond 2019 would be hybrids. The five-year plan - Marchionne's last as CEO - includes one secret ingredient Ferrari hopes will sweeten its sales: an SUV.

Bloomberg News first reported about the plan Tuesday.

Details of the new strategy will be unveiled next year. The company on Wednesday stuck to a target to boost deliveries this year to 8,400 vehicles.

The final five-year plan under Chief Executive Officer Sergio Marchionne, who's set to retire in 2021, will target boosting annual deliveries beyond a self-imposed limit of 10,000 cars, which allows the company to operate with less-stringent fuel-economy rules, said the people, who asked not to be identified because the matter is private. However given the increasing demand of SUVs in China, it is becoming harder for manufacturers, including Ferrari, to ignore.

Marchionne reiterated that "you have to shoot me first" if Ferrari comes up with something similar to SUVs made by BMW, Bentley and Porsche.

Adjusted earnings before interest, taxes, depreciation and amortization rose in the second quarter to 270 million euros ($510 million) from 217 million euros a year earlier, Ferrari said in a statement on Wednesday, beating the average 262 million-euro estimate of six analysts surveyed by Bloomberg. But the fact that he's talking about it in the open-especially during a conference call for investors, who would presumably be quite interested in the jump in profits such a vehicle would be likely to bring- suggests the carmaker might well have already made a decision. No official green light has been given, but the vehicle is set to target the Chinese market and could help add a further 2000 units to annual sales.

Other reports by Click Lancashire

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