Ferrari plans 15 new models to double earnings by 2022. Photo: File.

INTERNATIONAL – Ferrari plans to launch 15 new models, including hybrid cars, a utility vehicle and more special editions as part of a plan to as much as double core earnings by 2022.

The supercar maker moved to a guidance range for adjusted core earnings of 1.8-2.0 billion euros ($2.1-2.3 billion) by 2022, rather than the 2 billion figure set by late Ferrari boss Sergio Marchionne but his successor sought to reassure investors that the company can maintain recent strong growth.

“This is an ambitious plan, but a doable one based on a concrete, detailed framework,” Louis Camilleri said on Tuesday at the company’s Maranello headquarters in Italy.

Ferrari shares were steady at 1145 GMT, recovering from earlier losses. The stock slid more than 8 percent on Aug. 1 when Camilleri described Marchionne’s targets as “aspirational”.

Marchionne’s sudden death in July jolted investors who had expected the auto industry grandee to remain at the wheel until 2021, having more than doubled Ferrari’s market value since taking it public in 2015.

Camilleri and his team outlined a plan to show how the firm known for its racing pedigree and roaring combustion engines will shift to making a utility vehicle and hybrid cars and boost margins to over 38 percent without sacrificing exclusivity.

With margins at 30 percent right now, strong pricing power and an enviable customer waiting list, Camilleri inherits a business firing on all cylinders and is not expected to stray far from his predecessor’s script.

Pricing power

Marchionne had orchestrated Ferrari’s spin-off from parent Fiat Chrysler, positioned it as a luxury brand rather than a carmaker, and managed to do what few thought possible: sail through a self-imposed production cap of 7,000 cars a year without sacrificing pricing power or its exclusive appeal.

Ferrari has clocked up years of record earnings, helped by special editions and a customization program.

But it could prove tough to maintain the company’s high valuation as emissions rules tighten, capital spending increases and the diverging interests of investors, racing fans, owners and collectors become harder to balance.

At the event, Ferrari unveiled the single-seater Monza SP1 and two-seater Monza SP2, a pair of open-topped, limited edition sportscars, as part of a new segment dubbed “Icona” inspired by past Ferraris targeted at its most loyal customers.

It also promised to expand its range of GT vehicles centered on style, elegance and the driving experience, rather than extreme performance, to lure new customers to the brand.

Ferrari said it would launch the much-debated utility vehicle by the end of the plan. The vehicle, called “Purosangue” (Thoroughbred), could potentially lead to a substantial growth in sales, analysts have said.

Camilleri sought to soothe concerns the vehicle could dilute Ferrari’s exclusive status by saying it would be “unique”, “elegant, powerful, versatile, comfortable, spacious and feature state of the art connectivity and infotainment”.