Vigna said Ferrari would develop and build its own electric motors, inverters and battery modules for its electric models on a new assembly line at its plant in Maranello, Italy, while outsourcing non-core components to partners.
Faced with looming bans on fossil-fuel vehicles in Europe and China, major automakers have committed to spend more than $250 billion (all figuresin USD) through 2025 on the shift to electrification, according to industry estimates.
Ferrari said it expects to invest 4.4 billion euros ($4.58 billion) by 2026, most of that on product development, while delivering EBITDA (core earnings) of 2.5 billion to 2.7 billion euros by that year. The company expects cumulated free cash flow of 4.6 billion to 4.9 billion euros from 2022 to 2026.
Like other sports car makers, Ferrari’s challenge goes beyond just the huge capital investments necessary to develop electric models that can match their high-performance fossil-fuel forebears.
Ferrari also sells an emotional experience to wealthy customers centred around the throaty roar of a powerful engine.
Customers and investors both like what Ferrari does today, with a long order book for cars that start at more than $208,000.