Ferrari’s new chief executive Louis Camilleri says profit targets set by the late Sergio Marchionne’s were “aspirational”, triggering a plunge in the automaker’s shares.
Speaking on a conference call to analysts, Camilleri said he will outline a plan for how Ferrari will try to double its profits by 2022 in September.
“Both Sergio and I had the same ambitions,” he said. Camilleri went on to say that Marchionne’s targets were “aspirational” and carried both “risks and opportunities,” Bloomberg reports.
In response, shares in Ferrari dropped by as much as 12 per cent on the New York Stock Exchange, the most significant decline since February 2016, reducing the brand’s market value to $22.9 billion.
Under Marchionne’s leadership, Ferrari’s profits doubled in the past four years, thanks to the introduction of one-off models and an increase in production. Marchionne also intended to oversee the launch of a number of hybrid performance models and the marque’s first SUV.
Before Marchionne’s death last week, he was set to remain at the helm of Ferrari for another five years. He said Ferrari intended on doubling its profits to 2 billion euros ($2.3 billion) within five years.
Predictably, it’s not just Ferrari’s value that has taken a hit following Marchionne’s death from an undisclosed illness. Shares in Fiat Chrysler Automobiles slumped by 16 per cent on July 25 as new chief executive Mike Manley reduced the car manufacturer’s profit targets for 2018.
It remains to be seen if Camilleri will alter Ferrari’s plans for the future or not. We shall find out in September.