Latest news with #BenedettoVigna
The Age
11-07-2025
- Automotive
- The Age
Car industry's ritzy star Ferrari is looking less like a carmaker and more like Hermes
Vigna's background as a theoretical physicist is apparent as he illustrates his thinking with diagrams sketched on pieces of paper like a professor at a blackboard. Benedetto Vigna, chief executive officer of Ferrari. Credit: Bloomberg His contention is not just that Ferrari is a luxury-goods company, comparable in some ways with France's Hermes, the most valuable firm in that industry – but that it is a unique one. Loading The maker of high-end sports cars has succeeded in boosting sales while adhering to the maxim of Enzo Ferrari, who founded the firm in 1947, that it should sell 'one less car than the market demands'. Despite its expansion, Ferrari insists that it is as exclusive as ever, having grown fastest in places such as the Middle East where sales were once small. Recently, it has also raised prices at a far faster pace than in the past. As Stephen Reitman of Bernstein, a broker, points out, the price of new models used to be 3-5 per cent higher than those they superseded, whereas the new 12Cilindri is a whopping 30 per cent more than the 812 Superfast it replaces. Workers on the production line at the new Ferrari NV E-building factory in Maranello, Italy. Credit: Bloomberg That is also true for Ferrari's hugely profitable flagship cars, which arrive at irregular intervals, justified by improved technology learnt from racing. Deliveries of the latest, the F80, which costs €3.6 million, will begin soon, 12 years after the launch of the LaFerrari, which set owners back a mere €1 million or so. Total revenue from the F80 will exceed €2.3 billion, says Jefferies, a bank. To plug the gap between launches of these money spinners, Ferrari has started to make special limited-edition cars, such as the Daytona SP3 unveiled in 2021 (price: €2 million), which are high-margin styling exercises underpinned by existing models. Ferrari also now offers far more opportunities for personalisation, from custom paint-jobs to added carbon fibre and lavish interiors. These can add 20 per cent to the price of its cars, which Barclays, a bank, reckons will set back buyers an average of more than €500,000 next year. The firm is able to charge such eye-watering prices thanks to the devotion of its loyal fans. Some 80 per cent of customers are already owners. Many make a pilgrimage to the factory; some, overcome by emotion, are said to shed a tear. The entrance to the Ferrari factory in Maranello, Italy. Credit: Bloomberg Judging the mood of its customers by keeping in close contact with about 180 dealerships worldwide allows Ferrari to draw its most avid collectors into an inner circle. Tariff-induced price rises have made no difference to orders from America. Sales of the F80 (of which Ferrari is making just 799) were three times oversubscribed. Getting chosen for one required buying several other Ferraris and acting as an ambassador, including turning up at car shows organised by the firm (and paying for the privilege). Even that was not a guarantee. Customers accept that Ferrari cannot serve everyone, explains Enrico Galliera, its marketing chief, dubbed 'Mr No' for frequently rejecting requests from would-be buyers. They may fear that any sign of disgruntlement will mean being bumped down future waiting lists. Shoppers outside the Hermes International luxury clothing boutique on Avenue George V in central Paris, France. Credit: Bloomberg All this sounds similar to how ultra-luxe fashion brands such as Hermes operate. Yet, Vigna reckons Ferrari has even more going for it than the maker of pricey leather goods. His firm combines heritage with cutting-edge technology. It takes part in racing events such as the British Grand Prix on July 6, which are central to the brand's marketing. (Hermes organises a show-jumping tournament – classy, but less adrenaline-fuelled.) Chinese consumers, who have lately tightened their purse strings, account for just 8 per cent of Ferrari's sales, compared with as much as two-fifths at Hermes. Loading And Ferrari relies almost exclusively on the very rich, who are more insulated from downturns. A good chunk of revenue at Hermes comes from cheaper goods such as scarves, ties and perfume, much of which are sold to consumers who are wealthy, but not outrageously so. What could go wrong for the car industry's ritzy star? Some say that its price rises are already too aggressive. Further increases in production may eventually threaten the brand's perceived exclusivity. Revenue from personalisation has its limits. Ferrari also has one thing in common with more mundane car firms: the transition to battery power. The Elettrica, its first foray into that segment, will hit the road next year. The company recently doubled the size of its factory in Maranello, which will give it flexibility to make the electric vehicle without producing fewer of its current models. Yet other electric super-cars have been met with indifference. If Ferrari's fails to impress, the carmaker's pristine image could be damaged. Worryingly, on June 17, reports emerged that it would delay a second electric model by two years, to 2028. Vigna still has to solve his trickiest problem yet. The Economist
Arabian Business
18-06-2025
- Automotive
- Arabian Business
Ferrari likely to delay its second EV model due to weak market demand
In yet another sign of compounding trouble for the near future of electric vehicles, Ferrari has reportedly delayed plans for its second fully electric model to at least 2028. The second EV of the Italian supercar manufacturer was earlier scheduled to hit the markets in 2026. Reuters, quoting two sources close to the matter, said this was because of a lack of demand for high-performance luxury EVs. Ferrari is expected to unveil its first fully electric car later this year in October, with deliveries starting October 2026. In a post-earnings call last month, Chief Executive Benedetto Vigna had said Ferrari would only show the 'technological heart' of its EV in October, as part of a three-stage unveiling process culminating with its world premiere in the spring of 2026. Ferrari delays second EV One of the sources told Reuters that real, sustainable demand is non-existent for an electric sports car. The source added that most automakers have struggled to overcome the fact that EV batteries are far too heavy, which tends to impede speed, and lack the sustained power of a fossil-fuel engine. Some of the petrol and hybrid Ferrari models, which are known for their powerful engines that produce an iconic roaring sound when accelerated, have waiting periods of nearly five to seven years. Ferrari declined to comment on the development when approached by Reuters. The company is expected to present its new long-term business plan to investors on October 9. In December last year, Ferrari's Italian rival Lamborghini also delayed the launch of its first electric model by one year to 2029. Germany's Porsche also cut back its plans for EVs amid soft sales of its electric Macan SUV and Taycan models. And earlier this year, Maserati, the luxury brand of Stellantis, cancelled plans for an electric version of its MC20 sports car. Tesla, which has long been the bellweather for electric vehicles, has seen a massive decline in sales, partly due to competition from Chinese manufacturers, and also the growing dissent against founder Elon Musk. Ferrari's first EV is co-designed by former chief designer of Apple, Jony Ive, who has since joined OpenAI after a takeover of his company io by the ChatGPT owners. However, Ive has said he will continue to work with Ferrari.
Harvard Business Review
11-06-2025
- Automotive
- Harvard Business Review
Sustainability Is Fueling Innovation at Ferrari
When Ferrari, the Italian luxury sports car manufacturer, committed to achieving carbon neutrality and to electrifying a large part of its car fleet, investors and employees applauded the new strategy. But among the company's suppliers, the reaction was mixed. Many were nervous about how this shift would affect their bottom lines. Harvard Business School professor Raffaella Sadun and Ferrari CEO Benedetto Vigna discuss how Ferrari collaborated with suppliers to work toward achieving the company's goal. They also explore how sustainability can be a catalyst for innovation in the case, Ferrari: Shifting to Carbon Neutrality. Key episode topics include: strategy, environmental sustainability, corporate social responsibility, luxury goods, ESG, climate change, car manufacturing, innovation HBR On Strategy curates the best conversations and case studies with the world's top business and management experts, to help you unlock new ways of doing business. New episodes every week.
Auto Blog
04-06-2025
- Automotive
- Auto Blog
Ferrari Confirms Yearly Forecast Despite Tariff Uncertainty, Schedules First EV Deliveries
Ferrari puts up impressive numbers for Q1 Several automakers, including but not limited to Porsche, Mercedes-Benz, and Ford, have suspended their financial guidance after Q1 because of uncertainties relating to U.S. vehicle and parts import tariffs, but Ferrari deviated from this trend. Instead, the Italian automaker confirmed its 2025 economic forecast after reporting a 15% profit rise during Q1, and despite warning that U.S. tariffs could cut 50 basis points (half a percent) of its 2025 profit margins. Ferrari also said it will start deliveries of its first-ever electric vehicle (EV), the Elettrica, in October 2026. The company's CEO, Benedetto Vigna, said the first part of the Elettrica's reveal, scheduled for October of this year, will focus on the vehicle's 'technological heart,' according to Carscoops. Ferrari will develop and build the EV's electric motors, battery modules, and inverters in Maranello. Ferrari 12Cilindri — Source: Ferrari How Ferrari achieved its positive Q1 results The exotic carmaker is forecasted to bring in 2025 earnings of at least €2.68 billion ($3.03 billion) before interest, taxes, depreciation and amortisation, Reuters reports. Ferrari's Q1 success is attributed to a more expensive inventory, including the 499P Modificata ($5.4 million), the SF90XX lineup (starting at $890,000), and the 12Cilindri (starting at $470,950), along with an increase in demand for bespoke specs and from more profitable markets, such as the Americas. Shipments rose 8% in Europe, the Middle East, and Africa, while the Americas registered a 3% increase, according to The Wall Street Journal. The most frequently delivered Ferraris included the Roma Spider, 296 GTS, SF90XX family, and the Purosangue. Markets with a decline in deliveries comprised China, Hong Kong, and Taiwan at 25%, and the rest of the Asia-Pacific at 6%. Vigna noted the automaker shipped 3,593 cars during Q1, 33 more than the previous year, which was mostly in line with expectations. He added that Ferrari achieved these results because the company focused on the quality of revenue vs. volumes. In Q1, Ferrari reported a net profit of €412 million ($465.9 million), up from €352 million during the same period last year. 'All key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations,' Vigna said to The Wall Street Journal. Conversely, automakers like Mercedes-Benz reported experiencing lower profitability in Q1, with U.S. tariffs causing the company to ditch its 2025 financial guidance. Mercedes-Benz announced a 7.3% profit margin for its car segment, down from 9% during last year's Q1. 'The current volatility with regard to tariff policies, mitigation measures and resulting potential direct and indirect effects, in particular on customer behavior and demand, is too high to reliably assess the business development for the remainder of the year,' the German automaker said in a statement according to Reuters. Ferrari SF90 XX Stradale — Source: Ferrari Final thoughts Ferrari's announcement on its EV is significant since it's the first time the automaker has gone on record providing an official timetable for the model's debut. What's equally significant is how the company is sticking to its 2025 financial guidance, while nearly the entire auto industry is doing the opposite. With grim auto market outlooks for 2025 appearing left and right, Ferrari's standout Q1 and confidence in its annual projections are a breath of fresh air.
New York Times
22-05-2025
- Automotive
- New York Times
It's Early in Formula 1, and Ferrari Has Already Faded
Ferrari came just 14 points short of winning the Formula 1's constructors' championship in 2024, but already the fabled Italian team is firmly out of contention for the crown. It is languishing in fourth, 165 points behind the runaway leader, McLaren. It has just one top three finish this year. 'The beginning has not been easy, we all know that,' Benedetto Vigna, the Ferrari chief executive, said in an conference call earlier in May. Its car, the SF-25, has not lived up to expectations and has lacked performance across a variety of conditions. Charles Leclerc, who dominated in Monaco 12 months ago to finally win at his home Grand Prix, is pessimistic. 'Unfortunately, I'm really not looking forward to Monaco this year,' Leclerc said after the Miami Grand Prix. 'As I don't think we've got a car to be quick there.' Lewis Hamilton, the seven-time world champion who joined the team after 12 years at Mercedes, has not looked fully comfortable. He shone in the sprint race in China, winning from pole position, but he has labored and his mood has fluctuated. After finishing seventh in Saudi Arabia in April, a downbeat Hamilton said he feared 2025 would be painful and that he was 'struggling to feel the car beneath me,' while also being clueless as to how to address the problem. After the following race in Miami, where he finished eighth, Hamilton was significantly more ebullient, saying, 'I truly believe that when we fix some of the problems that we have with the car, we'll be back in the fight with the Mercedes, with the [Red] Bulls.' Even accounting for Hamilton's own performances, Ferrari has struggled to extract speed during qualifying sessions and has difficulties getting Pirelli's tires into the optimum operating window for one-lap performance. Those results always heavily dictate Grand Prix results, a trend that has been prominent in 2025 because of the impact of disrupted air flow when following another car. Grid position is also vital for Monaco, less so because of dirty air, but because of the narrow streets that render passing nearly impossible. While Hamilton's average qualifying result in 2025 has been a lowly 8.7, Leclerc — a renowned qualifying specialist with 26 pole positions — is at 6.1. 'I think we need to focus on qualifying,' Leclerc said in Saudi Arabia. 'I feel very at ease with the car in a way that I know I can extract the maximum out of the car more often than not, but unfortunately, the car potential is just not good enough to fight for better in qualifying,' he continued. Similar sentiments were echoed in Miami, after Leclerc qualified only eighth. 'I feel we are maximizing the potential of the car,' he said. 'It's just that the potential of the car is just not there. And when I finish a lap, again, in qualifying, I feel very satisfied with my lap, but it's only bringing us whatever it is, P8 or something.' Leclerc said that 'we are just not fast,' adding: 'Whatever we do with the car, we can run it in different ways, but we just don't have the down force that the others have at the moment, especially at low speeds.' It is possible that Ferrari can remedy its problems by bringing new components, but these take time to design and produce — once an issue is identified — and even then there is no guarantee of its efficacy. Other teams, too, are not standing still. Operationally, Ferrari has also made mistakes, such as misreading the weather in Australia and suffering a rare double disqualification in China when its cars had separate technical breaches, with one underweight and the other with excessive skid plank wear that rendered it illegal. Ferrari has two high-caliber drivers, and all the resources at its disposal, but as another new regulation change looms for 2026, a championship, which it last won in 2008, may continue to be out of reach.
