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Ferrari's business model yields enormous pricing power, which combined with operating acumen drives a staggering €181,000 per car Ebitda, or 5x the average of a Porsche AG, making it a less-cyclical value loop envied by rivals Mercedes-Benz AG, BMW Group and Aston Martin Lagonda Ltd. Several catalysts, including the addition of Lewis Hamilton for the 2025 Formula 1 season, should keep order books full and cash flow humming https://lnkd.in/eNhrwSuJ

⚡ FIA CEO Dodds: China is the Driving Force of the Global Automotive Industry - Jeff Dodds, CEO of the International Automobile Federation (FIA) Formula E World Championship, says China is a driving force for the development of the global automotive industry

OEM rumblings in Formula E . . . As plans get underway for Formula E's Gen4 rollout – set to debut in season 13 of the ABB FIA Formula E World Championship in 2026-27 - an interesting backstory is emerging. Stellantis chief executive, Carlos Tavares, warned last week at the Paris Motor Show that delays to the automotive EV transition pose a potential “trap” that may usher in higher costs. He is not a solitary voice among the big OEMs backing FE. There's been a slower than forecast growth in EV sales, globally. And it's understood that this could impact OEMs' views on their marketing plans up until 2030, which is when the Gen4 era of Formula E will end. On the competition side, teams such as DS PENSKE Formula E Team remain confident, albeit cautious. DS Performance's director, Eugenio Franzetti, told The Race at the DS Penske launch in Paris this week that the Gen4 decision was “a complex situation. He added, "We are working hard on it, presenting different solutions and different business plans. But for the next two seasons (meaning 2024-25 and 2025-26) it is sure we will be there.” The promoters of Formula E are confident that major OEM brands - including Stellantis - will remain in the championship beyond 2026 when Gen4 begins. Formula E’s CEO, Alberto Longo, said that he was, in fact, “super confident.” More details can be found here: https://ansbl.net/48iU7FM #FormulaE #futuremobility #simulation #automotiveengineering

Ferrari should generate about €183,000 per vehicle in 2024, or 6.7x rival Porsche AG's level, as the German manufacturer deals with supply-chain challenges, a weak China market and model changeovers. Porsche may be down, with its market cap having shed $50 billion from the peak in May 2023, but it is hardly out. It has profit levels envied by most auto luxury peers, an iconic brand and a robust pipeline, all of which should lead to stronger intermediate-term fundamental performance and underpin one of the strongest financial risk profiles in the sector. https://lnkd.in/e9Q3J7m9

Ferrari in a different league on EBIT margins compared to others. Ford needs to sell 100 cars per 1 Ferrari to make the same. Case-in-point on cost leadership vs premium differentiation! (Source: Børen, Car Industry Analysis)

Ferrari (RACE) boosted its full-year guidance when delivering second-quarter results that topped revenue expectations on Thursday. The Italian automaker now projects 2024 net revenue of more than 6.55 billion euros ($7.07 billion), up from more than EUR6.4 billion, and adjusted earnings per share (EPS) of at least EUR7.90, up from at least EUR7.50. “We are delighted to announce excellent financial results in the second quarter of 2024, which demonstrate again a strong execution and continued growth." – Benedetto Vigna, CEO Ferrari $RACE Q2 2024 in a nutshell: Shipments +3% *EMEA +1% *Americas +13% *Greater China -18% *APAC +4% Revenue +16.2% EBIT +17% *marg 29.9 (29.7) EPS +25% Source: Quartr

Just a few hours ago, Formula One (specifically Formula One Management) announced that it had reached an agreement in principle with General Motors (GM) to support bringing GM/Cadillac to the F1 grid as the 11th team in 2026. Cadillac, a division of the American motoring giant General Motors, is expected to be powered by Ferrari before it develops its engines. Given how strong Ferrari's momentum has been in the later part of the 2024 season, it'll be interesting to see whether Cadillac and GM can leverage this before developing their in-house power units for 2028 and beyond. This move comes after F1 initially rejected the bid, which was headed up by Andretti (owned by former F1 driver Michael Andretti), who has since stepped down as CEO of the organisation. Interestingly, according to F1, they state: "Formula 1 has maintained a dialogue with General Motors and its partners at TWG Global regarding the viability of an entry following the commercial assessment and decision made by Formula 1 in January 2024. Over the course of this year, they have achieved operational milestones and made clear their commitment to brand the eleventh team GM/Cadillac, and that GM will enter as an engine supplier at a later time. Formula 1 is therefore pleased to move forward with this application process and will provide further updates in due course." We have previously covered the news following this saga on two ocassions: 1️⃣ https://lnkd.in/g9U6fiVu (ANALYSIS: FIA approves Andretti Global as 11th team, but what about F1?) 2️⃣ https://lnkd.in/giJhpAjy (F1 faces questions from US Congress over Andretti's F1 bid rejection) What are your thoughts about F1 having an 11th team? ** 🏎 Love seeing Formula One content on LinkedIn? Follow Race Recap on LinkedIn and click the bell button for the latest updates 🔔

McLaren Group may need additional sources of liquidity after a grueling recapitalization, given its modest 1Q levels and our expectations. The company's iconic products, which we think may yield £245,000 peer vehicle in 2024, are known for light composite materials and engineering that enable it to achieve pricing power even when compared with rivals like Porsche AG and Ferrari. Yet, the British automaker desperately needs a lower-risk balance sheet, operational execution and the financial flexibility to generate new products, including an SUV, to compete effectively. https://lnkd.in/eW5xqgyQ

Porsche approves three Continental tire lines for original equipment on the Panamera/ SportContact 7 offers maximum precision and safety even at speeds above 300 km/h The post Porsche approves three Continental tire lines for original equipment on the Panamera appeared first on Automotive World .

General Motors and Formula 1: BFFLs ❤️ (finally...). General Motors (/Andretti) have done brilliantly to gain an F1 entry from 2026. Are there any interesting legal / regulatory topics? The general view is that this is a big win for the fans. Hopefully it’s a huge success and they’ve certainly hired loads of smart people.   The entry process itself is obviously contentious / confidential, so, apart from that, what else is interesting? 💸𝗖𝗼𝘀𝘁 𝗰𝗮𝗽: To date, neither the chassis nor power unit financial regulations have applied to GM. Can GM spend their way to success? Certainly makes it easier to poach people (for now). Also, Williams have complained (leading to regulation changes) about how hard it is to replace ageing tech within a cost cap; Cadillac may have none of that issue. 🧑🔧𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀: As with the cost cap, to date GM have not had to comply with the Chassis or Power Unit Technical Regulations. That means unlimited time with the wind tunnel, CFD and dyno. That would surely be a decent advantage, so maybe the FIA will have struck a deal to keep the incumbents happy? 📺𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘀: Adding an 11th team isn’t just logistically challenging, existing teams (and others) may have contracts with fees linked to bonuses (eg finishing position) or exposure. With 2 extra places up for grabs (and vying for screentime), this may mean:  • reduced value to existing sponsors who are locked into contracts beyond 2026; • drivers who may be paid based on points, now even less likely to score; or • teams with smaller sponsor / prize fund pay outs for finishing lower down the grid. 🏭𝗦𝘂𝗽𝗽𝗹𝗶𝗲𝗿𝘀: By regulation, the FIA limits teams creating exclusive relationships with suppliers. However, there aren’t many suppliers capable of producing F1-grade tech (or legal advice…). This could either be: (a) a huge opportunity for some of those suppliers to add another team; or (b) create a squeeze on the “best” tech. Plenty of time for them to scale up. All good fun and I'm sure everyone's looking forward to seeing how the sport balances incumbent vs newcomer interests! Image (c) Cadillac / General Motors #F1 #Cadillac #GeneralMotors #Andretti #Motorsport #Sportslaw