Electric VehicleTop Stories

Ferrari to Expand Electric Vehicle Production Line in Italy

Ferrari to Expand Electric Vehicle Production Line in Italy

Italy: Ferrari, a luxury sports car manufacturer announced its plan to broaden its factory of electric vehicles in northern Italy. It is a part of the company’s electrification strategy. The company is set to reveal details of the plan next week during the briefing.

The renowned automobile manufacturer is slowly snapping up space near the Maranello plant. It has also started cleaning the way for the development of a third production line. It wants to dedicate the third plant for making electrified vehicles. It is projected that the expansion plan will also consist of a novel research and development center.

On June 16, Ferrari is planning to shed light into its new project amid the capital markets day. The company CEO Benedetto Vigna is expected to provide more in-depth information about the automotive manufacturer’s electric vehicle development strategy. He is also likely to put forward his unique business plan that will be followed for the next five years.

In 2015, the company had cultivated one of the world’s most crucial brands long before it went through a smash success initial public offering.

One of the company officials, who did not like to be named, as the information is highly confidential, mentioned that Ferrari is expected to continue posting enviable profit margins. The company’s shares have recently underperformed owing to various concerns associated with its late start in the electric vehicle race.

In Milan, the company’s stocks have dropped to nearly 22% this year, trailing its European automotive peers, as well as Italy’s benchmark stock index.

Swetha Ramachandran, who looks after GAM’s Luxury Brand Equity Fund stated that the main focus is one the organization’s electrification strategy at the moment. At the same, research work related to how the organization’s technology can adapt to a rapidly evolving world is set to take place. In addition to that, Ferrari is striving to implement unique strategies to pursue value over volume.

Ferrari may have to invest huge sums in order to unveil its latest fully electric vehicle by the end of 2025. Investors across the world may be surprised with the scale of expense needed for electrification.

Ferrari shook up its organizational structure months after Vigna, 53, started as CEO, to bring in a large number of executives from his former company. Ferrari also joined hands with Qualcomm, the prominent chipmaker to develop more efficient digital car cockpits.

The company exhibited a bit less exceptional growth in recent years, with competitors raising their game and returns coming off peaks. The upcoming investor event is considered to be a major opportunity for the organization to reclaim its leadership. At the same time, the event would enable the company to better understand why John Elkann brought in the outsider, Benedetto Vigna to reform Ferrari.

The company’s fully-electric supercar is expected to have several sleek battery packs sandwiched under its seat. The supercar is set to be rigid and have more space to mount batteries. It can also be a hybrid car in future.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button