1988 Ferrari Mondial 3.2 Cabriolet on 2040-cars

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Ferrari investors want assurance on goals, SUVs on eve of vehicle reveal

MILAN — Ferrari's new boss has his work cut out on Tuesday to convince investors that the supercar maker can hit mid-term targets he described last month as "aspirational." The company's share price slid more than 8 percent on Aug. 1 after Louis Camilleri said he saw "risks" ahead, with investors worrying he may have sought to lower expectations on the targets set by his predecessor, Sergio Marchionne. Former tobacco exec Camilleri was appointed Ferrari CEO in July, succeeding Marchionne, who died from complications following surgery. The sudden change jolted investors who had expected Marchionne to remain as CEO and chairman until 2021, having more than doubled Ferrari's value since taking it public in 2015 and pledged to double core earnings (EBITDA) to 2 billion euros ($2.3 billion) by 2022. It also left Camilleri to finish scripting a strategy to show how the company known for its racing pedigree and roaring combustion engines would shift toward making a sport utility vehicle (SUV) and hybrid cars while increasing shipments without sacrificing its exclusivity. "Investors want to hear whether Ferrari confirm the 2 billion euro figure, which was already seen as ambitious and now somewhat put in question by the new CEO," said Emanuele Vizzini, general manager at Milan-based investment fund Investitori Sgr. "And how they plan to expand the portfolio, including an SUV." 'Nurture what he's found' When Camilleri faces investors at Ferrari's Maranello headquarters on Tuesday he is not expected to stray far from his predecessor's script. Marchionne had orchestrated Ferrari's spinoff from parent Fiat Chrysler, positioned it as a luxury icon rather than a carmaker and managed to do what few thought possible: sail through a self-imposed cap of 7,000 cars a year without sacrificing pricing power or its exclusive appeal. "Ferrari is running almost on autopilot ... Camilleri should not take any risks at this stage but nurture what he's found," said Carlo Gentili, CEO at asset manager Nextam Partners. When Ferrari's share price hit a record high of 129.50 euros in June, the company that sold slightly fewer than 8,400 vehicles last year was worth about 24 billion euros. That is almost as much as Fiat Chrysler <FCHA.MI>, which shipped 4.7 million cars. With profit margins above 30 percent, strong pricing power and a healthy customer waiting list of more than a year, Camilleri inherits a business that is firing on all cylinders.

Lewis Hamilton takes pole as Mercedes speed stuns rivals

MELBOURNE, March 16 (Reuters) - Formula One champion Lewis Hamilton blazed to a record-extending eighth pole and sixth in succession at the Australian Grand Prix on Saturday to lead Valtteri Bottas to a Mercedes sweep of the front row of the grid. Hamilton struggled with a brake problem during the frenetic final session at Albert Park but edged his Finnish team mate by 0.112 seconds with a searing second lap of one minute 20.486 seconds that set a record at the lakeside circuit. The one-two punch by Mercedes left Ferrari and their championship rivals stunned, with Hamilton's chief challenger Sebastian Vettel, who qualified third, more than seven-tenths of a second off the five-times champion's pace. "Oh man, I'm shaking it was so close out there," Briton 34-year-old Hamilton said after extending his pole record to 84 on a warm, sunny afternoon in Melbourne. "Coming from winter testing, we had no idea where we would be. We were hoping to be where we are ... Valtteri did an exceptional job out there, it was very close." Hamilton matched Ayrton Senna and Michael Schumacher for the record number of poles at a single race track. Senna took his eight at Imola, with Schumacher dominating the Suzuka circuit. Four-times champion Vettel, bidding for a third successive win at Albert Park, was separated from his new team mate Charles Leclerc by fourth placed Max Verstappen of Red Bull. It would have felt like 'deja vu' for Ferrari, having trailed Mercedes by nearly seven-tenths of a second in qualifying at last year's race. "Certainly Mercedes are the clear favorite," Vettel told reporters with a touch of resignation. "I'm certainly surprised (by their pace), I think everybody is, probably even themselves." "I think, there is still a bit of margin (to improve) but certainly the gap is there today, and it was a surprise," the four-times champion told reporters. "We didn't expect it coming here but now it is that way. ... Obviously there is a lack somewhere, because we are too slow – but didn't feel like it." German Vettel's new team mate Charles Leclerc qualified fifth fastest behind Red Bull's Max Verstappen but the highly regarded 21-year-old was harder on himself than the car. "I'm not happy with myself. I didn't do the job in Q3, which is a shame," said the Monegasque, who locked up in turn one of a "messy" second lap.

Ferrari vetoes F1 engine supply cost cap

The costs associated with competing in Formula One are enormous. In addressing the problem, the FIA has proposed a number of measures aimed at reducing those expenses. But while most of the teams are apparently on board, one key player has exercised its veto to defeat the initiative. The issue came up at a recent meeting of the Formula One Strategy Group, where the participating parties discussed implementing a global cost ceiling, amending the regulations in order to drive down costs, and increasing the standardization of common parts. However one of the most concrete steps would have seen the FIA institute a maximum price which engine suppliers could charge independent teams for their power units. The issue was put to a vote, which the FIA reports passed with a "large majority." But Ferrari vetoed the measure, exercising the right accorded to it under the governing regulations – a step which the FIA will not contest. With its cost-cap measure defeated, the governing body has confirmed its intent to move ahead with proposals to bring in an outside engine supplier that will provide motivation to independent teams at a lower cost. As we recently reported, the price associated with securing power units from suppliers like Mercedes, Renault, and Ferrari, typically costs teams as much as $30 million per season – a solid two or three times what they cost in the previous V8 era. One of the leading contenders at this early stage to supply those low-cost power units is Cosworth. The British firm has long participated in the championship as an engine supplier, stepping back from the sport only recently. However other companies could enter a bid for the contract as well. A French outfit called PURE run by former BAR-Honda team principal Craig Pollock began development of an engine package back in 2011. BMW and Toyota both supplied V8 engines until a few years ago, while independent outfits like Mecachrome, Mugen, and TAG have also prepared F1 power units based on engines developed by major manufacturers. 26.10.15 FIA FORMULA 1 WORLD CHAMPIONSHIP - COST REDUCTION The FIA has studied cost reduction measures for teams participating in the FIA Formula 1 World Championship which were not conclusive, including: - a global cost ceiling, - a reduction in costs via technical and sporting regulations, - an increased standardisation for parts.