Ferrari CEO Benedetto Vigna Is Expected To Continue Tradition With Electric Vehicle Technology

Ferrari is a symbol of luxury in sports cars. (photo: twitter @ferrari)

JAKARTA - Nine months after taking the helm as CEO of Ferrari, Benedetto Vigna is expected this week to explain how the Italian luxury carmaker will maintain their top-tier stamp and price in the future in electric car technology.

The Italian luxury sports car maker will unveil its much-anticipated business plan on Thursday, June 16, towards a new era of cleaner, quieter and electric mobility.

That is a particular challenge for the likes of Ferrari, who built its brand over decades by perfecting the roaring, super-powerful engines that power its cars.

Vigna, a technology veteran with 26 years of experience in the semiconductor industry and at the helm at Ferrari since last September, was tasked with marrying innovation with a long-standing tradition at Ferrari.

"We should expect a clear focus on the technology transition, answering a key question, which is how the company will thrive in this new environment, not just in terms of the product portfolio," said Marco Santino, automotive practice partner at management consultancy Oliver Wyman, citing Reuters.

According to Santino, strategic partnerships will be key to accessing new technologies while keeping capital expenditures under control.

The company is expected to reveal relevant areas for the new partnership, which could develop in line with its existing tie-up with UK's Yasa, now part of Mercedes, which supplies technology for electric drive for Ferrari's hybrid models.

The CEO said earlier this year that Ferrari would rely on partners to develop bio and synthetic fuels that could be additional green options alongside all-electric technology.

By announcing its first sport-utility vehicle (SUV), the Purosangue, over the coming months, Ferrari is also moving into a lucrative market segment where competitors such as Lamborghini, part of the Volkswagen group, already operate.

"The main challenge in the medium term will be to maintain best-in-class profitability while supporting unique efforts to develop new technologies and innovative solutions," said Santino.

In addition to the core technology, Vigna has a number of other areas where it can leave a mark, analysts say. These include areas of data and connectivity, intellectual property, Formula One motorsport performance, and increasing manufacturing complexity.

The Ferrari lineup has expanded to nine models, plus limited edition cars, in recent years, with six, eight, 12 cylinder, hybrid, and full electric engines to be produced soon.

Investors seem to keep that confidence. Shares of the company have been nearly flat in the last 12 months, versus an 18% decline for the European auto index (.SXAP) and a 13% decline for the luxury goods index (.STXLUXP).

Their rival, Aston Martin, has lost nearly 70% of the stock's value over the same period, while Tesla's stock is among the few to outperform Ferrari.