Latest news with #Vigna
Miami Herald
08-05-2025
- Automotive
- Miami Herald
Ferrari Confirms Yearly Forecast Despite Tariff Uncertainty, Schedules First EV Deliveries
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. 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'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. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
08-05-2025
- Automotive
- Yahoo
Ferrari's luxury game plan takes on Trump's auto tariffs
Luxury automakers like Ferrari (RACE) may be insulated from tariff-fueled price hikes due to their ultra-high-net-worth (UHNW) clientele, but even those well-heeled buyers may have their limits. Typically, UHNW buyers aren't dissuaded by price hikes; when demand for a product is strong or in limited supply — for instance, during the pandemic — they are willing to pay premiums for products like Rolex watches, fine scotches, and of course, Ferrari sports cars. It's why Maranello-based Ferrari didn't decrease or fully withdraw its profit guidance for the year during its latest earnings report. The Italian automaker did say, however, that profit metrics like EBIT and EBITDA margins could see a potential 50 basis point hit, depending on how President Trump's trade war plays out, though the possibility of 'offsets' in operations may diminish the impact, management said. Currently, foreign auto imports are subject to 25% tariffs. In response, Ferrari's pricing strategy is noteworthy and two-fold. For its ultra-premium cars like the $1 million+ Daytona SP3, upcoming F80 hypercar, and the new 12Cilindri coupe, the company will hike prices by a maximum of 10%. The thinking is these buyers will at least pay some of the tariff — in some cases, an additional $100,000 — because this 'marginal' amount won't dissuade them from a purchase of a limited-edition Ferrari. All buyers of these highest-end Ferraris are multi-repeat clientele and generally don't balk when Ferrari comes asking. For Ferrari's lower-priced cars, such as the Roma coupe, 296 sports car, and SF90 hybrid sports car, the company will hold prices steady. The thinking here is that these buyers are more price sensitive, and Ferrari faces more competitors in the space, including Aston Martin (ARGGY), Bentley (VWAGY), and Ferrari's regional rival Lamborghini (VWAGY). Ferrari's CEO Benedetto Vigna says his clients appreciate two aspects of Ferrari's pricing strategy. 'No. 1, we've been clarifying right away what we intend to do; and two, that we contribute, OK? We contribute to this price increase,' Vigna said on Ferrari's analyst call on Tuesday, citing talks he's had with customers. 'We don't ask them to pay all the bill, but we were very clear telling [them] that some models will have no price increase, some others up to … a maximum 10%. So they appreciate it a lot.' Vigna said the company will remain 'vigilant' in response to changes in purchasing behavior, but at the moment the company hasn't seen any shift post-tariffs. Lamborghini also reported stellar first quarter results, though it noted the 'uncertain' background in international trade remains. The company said it will 'closely monitor the situation and evaluate potential future scenarios and implications for its business,' but at the moment, business remains robust with a 'strong order book' of future sales. A spokesperson for Lamborghini said the automaker would not discuss pricing at this time, other saying the automaker was "carefully evaluating all possible scenarios." Compared to Q1 last year, both Ferrari and Lamborghini did quite well, with revenue up 13% and 30%, respectively, as well as 23% and 33% growth in EBIT. One area that Lamborghini highlighted is the strength of its key commercial regions — the Americas, EMEA (Europe & Middle East), and Asia — which allows it to spread the risk of trade tensions, though the US is still its top market. Like Lamborghini, Ferrari has a strong presence across a number of key regions, with a big wrinkle in its favor: a smaller dependency on China. Lagging China sales have hit other luxury brands, including Mercedes, BMW, and Audi. Wall Street is onboard with Ferrari's game plan for fighting tariffs and limiting China exposure. Morgan Stanley's Adam Jonas reiterated the bank's Overweight rating on the stock, citing Ferrari's 'uniquely positioned, defensive business' with an order book extending well into 2026, relatively low volatility to earnings, and strategic regional exposure, for example, low China risk. 'We are not aware of any other global luxury brand with anywhere near as low exposure to China as Ferrari,' Jonas wrote. 'We believe the company's strong pricing power (ultra-premium luxury consumer) and low exposure to China (1Q Greater China shipments represented 6.6% of total shipments) offer relative safety vs. many other names under our coverage.' A high-net-worth consumer, low exposure to China, and a surprisingly 'defensive' business in an uncertain economic environment could be Ferrari's key to success. 'Despite the surge of the uncertainty and volatility, our indistinctive business model provides us with solid confidence and the necessary agility for our future,' Ferrari CFO Antonio Picca Piccon said during the earnings call. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
07-05-2025
- Automotive
- Yahoo
Ferrari's first EV will be unveiled in three steps
Ferrari has opened a new 'e-building' in Maranello to build its electric car. MILAN — Ferrari will launch its first full-electric car through a three-step process, CEO Benedetto Vigna said, while presenting the company's first quarter results. Ferrari will show 'the technological heart' of the new model at the company's capital markets day on Oct. 9, Vigna said. The world premier will take place in the spring of next year and sales will start in October 2026, Vigna told analysts on May 6. It was the first time Ferrari gave the timing of when the EV could reach customers. In February. Vigna said the car would be presented at the company's capital market day in October. Sign up for the Automotive News Europe Breaking News alerts and be the first to know when big news happens. An analyst, who declined to be named, said it sounded like there was some delay to Ferrari's launch plan, because people would expect to see the full car at the capital markets day. Ferrari plans to continue offering gasoline and hybrid cars in the future, along with all-electric models. Hybrid models, which it started to sell in 2019, made up 51 percent of Ferrari's car sales last year. Full-year forecast confirmed despite tariffs Ferrari on May 6 reported a 15 percent rise in first-quarter core earnings to €693 million and stuck to its broad financial guidance for the year, despite other automakers scrapping forecasts due to U.S. President Donald Trump's tariffs. Its revenue climbed 13 percent to €1.79 billion on higher shipments in Europe and to the Americas. The Italian luxury sports car maker warned that U.S. tariffs could cut 50 basis points off its 2025 profit margins. But it still kept its forecasts, including for full-year earnings before interest, taxes, depreciation and amortization (EBITDA) of at least €2.68 billion ($3.04 billion) and an EBITDA margin of at least 38.3 percent. The 296 Speciale coupe is Ferrari's latest model. It accelerates from 0 to 100 kph (0 to 62 mph) in 2.8 seconds. Bernstein analysts said that was a sign of confidence at a time when the likes of Mercedes, Ford and Stellantis have suspended guidance. 'Ferrari stands out,' the analysts said in a note. Ferrari sells about one in four cars in the U.S., its largest market. The company said in March that it plans to raise prices for some of its models in the market by as much as 10 percent because of tariffs. Ferrari's higher earnings in the first quarter were boosted by a pricier lineup, including the SF90XX family, the 12Cilindri and the 499P Modificata models, as well as increased demand for personal touches requested by buyers and from more profitable markets, driven by the Americas. Ferrari sales slump in China Ferrari's global shipments rose 1 percent to 3,593 cars in the quarter. Deliveries were held back by a continuing slump in the greater China region, where its sales fell 25 percent amid muted demand for Western luxury cars. Ferrari's poor performance there follows a 21 percent sales drop in the region in the fourth quarter.
Yahoo
07-05-2025
- Automotive
- Yahoo
Ferrari's first electric vehicle to debut next year
Ferrari will begin deliveries of its first fully electric vehicle (EV) in October 2026, CEO Benedetto Vigna confirmed. The announcement came as the Italian luxury automaker reported a 15% increase in core earnings for the first quarter and maintained its full-year financial guidance, reported Reuters. While the EV will be introduced in stages, the company is set to reveal only the "technological heart" of the vehicle during its capital markets day on 9th October 2025. Vigna told analysts in a post-earnings call: "Deliveries ... will commence just months after that, in October 2026." This marks the first time Ferrari has provided a timeline for when customers can expect to receive the new model. Analysts noted that the delayed full unveiling may suggest a shift in the company's initial launch schedule. However, Ferrari typically begins deliveries around three quarters after a model's official premiere, aligning with the projected October 2026 delivery date. Despite the introduction of its EV, Ferrari will continue to produce and sell internal combustion and hybrid models. Hybrid vehicles, which Ferrari began offering in 2019, accounted for 51% of its total sales in 2024. The company also cautioned that tariffs introduced by President Donald Trump could impact its 2025 profit margins by about 50 basis points. Nevertheless, unlike some of its industry peers—including Mercedes, Ford, and Stellantis—Ferrari reaffirmed its 2025 financial forecasts. These include a target of at least €2.68bn ($3.04bn) in full-year EBITDA and an EBITDA margin of at least 38.3%. In the first quarter of 2025, Ferrari reported core earnings of €693m, closely aligning with analysts' expectations of €689m, according to a Reuters poll. The earnings were supported by high-end models such as the SF90XX series, the 12Cilindri, and the 499P Modificata, alongside strong demand for customisations and higher-margin markets, particularly in the Americas. Shares in Ferrari rose 1.6% on the Milan Stock Exchange following the earnings announcement. The automaker recently unveiled the 296 Speciale plug-in hybrid and its convertible version and plans to launch a total of six new models in 2025, including its first EV. "Ferrari's first electric vehicle to debut next year" was originally created and published by Just Auto, a GlobalData owned brand.
Scottish Sun
06-05-2025
- Automotive
- Scottish Sun
Ferrari reveals date for iconic brand's first-ever EV after ‘preparing for years'
Read more to find out when the revolutionary car will be available for purchase CHARGED UP Ferrari reveals date for iconic brand's first-ever EV after 'preparing for years' Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) FERRARI has revealed the launch date for its first ever electric vehicle - after having "prepared for years". The car giant's CEO Benedetto Vigna made the bombshell announcement at a financial meeting, saying that the car would be unveiled in three steps. Sign up for Scottish Sun newsletter Sign up 2 Ferrari announced when its new EV will reach customers, after they launched an e-building factory, pictured He said that the manufacturer will show "the technological heart" of the new model at the company's capital markets day on October 9. The revolutionary model's debut will take place in the spring of next year and sales will start in October 2026, Vigna announced on May 6. The groundbreaking statement is the first time Ferrari has indicated when the EV could reach customers. In February, Vigna claimed the car would be presented at the company's capital market day in October. Ferrari Chairman John Elkann said that his company had been "preparing for years" for electrification. The company first started selling hybrid models in 2019 - but has now scheduled to unveil the new fully electric cars for this October. Elkann said during the company's annual shareholders' meeting: "Electrification has been a path that we've been pursuing now for decades, starting in Formula One and then from our race cars to our sports cars. "We are very excited about unveiling the Ferrari Elettrica." He praised the newly inaugurated Ferrari facility - which was introduced in June in its hometown of Maranello. Known as the e-building, he said it would give the firm increased manufacturing flexibility to develop future models. Ferrari releases NEW convertible with blistering 211mph top speed for £366,500 "Now, we can also claim that all our key electric components are developed and handcrafted in Maranello," Elkann added. Vigna reaffirmed that Ferrari would continue to produce petrol, hybrid as well as fully electric cars. Hybrid cars made up 51% of all Ferrari sales in 2024. Vigna said: "Indeed, in line with our strategy, we continue to invest in all three powertrains ... to offer our clients maximum freedom of choice." Ferrari sells about one in four cars in the United States - its largest market. The firm said in March that it plans to raise prices for some of its models by as much as 10 percent because of Donald Trump's tariffs. But despite the economic changes - Ferrari on May 6 reported a 15 per cent rise in first-quarter core earnings and stuck to its financial guidance for the year.
