Ferrari welcomes shift to battery power; has no fears over electric future

Italian sports car maker Ferrari is known for its roaring petrol engine cars yet the company is welcoming the transition to battery-powered vehicles and is confident that it will retain its lead position in the high performance vehicle market, its chairman and acting CEO John Elkann told analysts, Reuters reported.

Elkann's statement comes after the European Union last month proposed an effective ban on the sale of new petrol and diesel engine cars from 2035 as part of its measures to combat global warming.

Though this will pose quite a challenge to the likes of Ferrari that makes powerful engines its key selling point, the car maker is looking to take the change as an opportunity. "We see the regulation as welcome... The opportunity set by electrification, electronics and other technologies... will allow us to make even more distinct and unique products," Elkann said.

The company is all set to onboard a new CEO on September 1 - Benedetto Vigna, who is a veteran from technology industry. Elkann, the scion of Italy's Agnelli family which controls Ferrari through its investment company Exor, believes that Vigna will help the automaker move towards the path of electrification. He will forge new partnerships, along the lines of Ferrari's existing tie ups to make the electric shift smoother.

Ferrari has pledged that it will launch its first all-electric vehicle in 2025. The company aims to benefit in its upcoming projects through partnerships and joint programmes both within and outside the industry.

The company reported a tripling in adjusted core earnings (EBITDA) for the second quarter of the financial year at 386 million euros ($458 million) as the pandemic restrictions eased. Ferrari also increased its industrial free cash flow guidance for this year to around 450 million euros from around 350 million, but left forecasts for net revenues and adjusted core earnings (EBITDA) unchanged.

(with inputs from Reuters)