Ferrari, the iconic sports car maker known for its powerful gas engines, is making a bold move into the world of electric vehicles. In a massive new factory in Northern Italy, engineers in cherry red uniforms are assembling hybrid vehicles, with plans to unveil a fully electric model next year.
The 200-million-euro “e-building” is part of Ferrari’s strategy to transition into the age of electrification, despite challenges facing the auto industry as a whole. Other luxury carmakers have struggled with electric vehicles, but Ferrari sees an opportunity to attract a new type of consumer: the wealthy environmentalist.
With the help of design agency LoveFrom, founded by Jony Ive and Marc Newson, Ferrari is working on creating a fully electric model that is shrouded in mystery. Analysts predict it could be one of the most expensive electric vehicles on the market, surpassing Porsche’s Taycan Turbo GT.
While regulators are pushing for electric vehicles, there is still skepticism in the marketplace. Ferrari’s CEO, Benedetto Vigna, is confident in the company’s ability to succeed in the electric vehicle market, despite the challenges. The company plans to have electric and hybrid cars make up 80 percent of its annual output by 2030.
Ferrari’s success in recent years, both on the Formula 1 track and in the luxury car market, has positioned it as a strong player in the industry. With a market valuation higher than Ford or General Motors, Ferrari is in a strong position to take on the challenge of electric vehicles.
The transition to electric vehicles raises new issues for Ferrari, including concerns about battery life and maintenance. The company’s longtime partner, SK On, will supply components for the E.V. batteries, which will be assembled in the new factory.
Despite the challenges ahead, Ferrari remains committed to its founder’s principle of producing a limited number of extremely expensive cars. With a profit margin of nearly 30 percent, Ferrari’s business model resembles that of luxury brands like Hermes or Rolex.
As Ferrari prepares to unveil its first fully electric model, the industry is watching closely to see if the iconic carmaker can maintain its reputation for speed, power, and luxury in the age of electrification.
