Ferrari names SUV, eyes 15 new models in 'ambitious' plan

By AutoFOXBusiness

The Ferrari Monza SP1 is displayed in Maranello, Italy, Tuesday, Sept. 18, 2018. (AP Photo/Collen Barry)

Ferrari revealed plans on Tuesday to boost profitability through the introduction of 15 new models by 2022, including an SUV, hybrids and open-cockpit cars.

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In a presentation detailing a five-year business plan, Ferrari unveiled the first cars in a new Icona special series. The Monza SP1 and SP2 are designed to resemble the open-top race cars of the 1940s and 1950s. The SP models, offered in single- or two-seat variations, will have the most powerful engines ever built by Ferrari for a road car, generating 810 horsepower and a zero-to-62 mph time of 2.9 seconds.

The supercar maker also announced that its first SUV will be named Purosangue – Italian for Thoroughbred. The Purosangue will hit the market in 2022.

Ferrari expects to roughly double core earnings to a range of 1.8 billion to 2 billion euros, or $2.1 billion to $2.3 billion, by 2022. The company had previously estimated 2 billion euros in core earnings.

“This is an ambitious plan, but a doable one based on a concrete, detailed framework,” Louis Camilleri told investors assembled at Ferrari’s headquarters in Italy, according to Reuters.

Camilleri was named Ferrari’s new CEO in July after former chief Sergio Marchionne fell seriously ill. Marchionne, who also led Fiat Chrysler Automobiles, died days later. Under Marchionne’s leadership, Ferrari more than doubled its market value in the years following a spinoff from Fiat Chrysler in 2015. Marchionne set in motion a plan to introduce more Ferrari luxury goods and increase global shipments of its vehicles.

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Ferrari had long capped production to preserve the brand’s exclusivity. The company limited its shipments to around 7,000 vehicles annually, but it’s on pace to produce more than 9,000 in 2018.

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Ferrari also debated adding an SUV to its stable of models, given some concerns that a sport-utility vehicle would ding the brand’s stature. Camilleri was quoted as saying that he was “a little skeptical” when the idea was first brought to the board of directors but is now a “hugely enthusiastic supporter” after seeing the design concept.

In addition to the Purosangue, Ferrari will develop new hybrids in a strategy that will help the company meet emissions standards as production grows. Hybrids will account for about 60 percent of Ferrari’s product mix by the end of the five-year plan.

Ferrari shares rallied 4 percent Tuesday.

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