Ferrari will spend €2billion on new engines image

The Italian supercar brand claims it aims to build the world’s most fuel-efficient high-performance engines and will ramp up investment in new technology by half to €2bn through 2017.

Ferrari spent €1.4bn on product investment in the five years to end-2012, including the development of its first hybrid car, the LaFerrari. It is obvious that Ferrari, famed for the prancing horse, engine roar and high performance is now working on actually taming its emissions really underlines the pressure being put on the entire car industry to reduce its carbon footprint.

“Ferrari will build the world’s highest-performance and most efficient engines in the world,” chairman Luca di Montezemolo said. “The secret is innovation, innovation, innovation. We want to build cars that have fantastic performance that stay inside the [emission] rules”.

The carmaker, owned by Fiat, says the investment will be funded internally. Ferrari has cash reserves of over €1.2bn and had a positive cash flow of almost €200m in the first half of the year. Alongside the engine development, the extra spending will enable Ferrari to bring out at least one new model every year, plus special edition cars.

Ferrari, which has 700 buyers lined up for the 499 models of its $1.4m LaFerrari model, sold 7,300 cars in 2012 but has announced that it will reduce production by around 400 this year to maintain the exclusivity of the brand.

Via Financial Times