Speaker 1: Right, right, right right, ferraris Ye, we're gonna talk about
Speaker 1: Ferrari's're also going to talk about the overall auto market.
Speaker 1: We had US automakers out with their sales numbers for
Speaker 1: July disappointing to say the least. And on the other
Speaker 1: side of the pond, we do have a story out
Speaker 1: from Ferrari having to do with SUVs. Let's bring in
Speaker 1: our own Tomaso ab Hearties Bloomberg News senior reporter follows
Speaker 1: the auto industry for US and he joins us on
Speaker 1: the phone from Milan. Uh, Tomaso, Um, let's just start
Speaker 1: quickly with the US automakers. We had some disappointing numbers today. Um,
Speaker 1: what's going on in the US auto industry? Does just
Speaker 1: all the US consumers that they bought all the cars
Speaker 1: they need? Hi? Hi, you diding it from from Milan? Yeah,
Speaker 1: I mean the cycle is is quite clear at the
Speaker 1: moment in the US l from March and today's number
Speaker 1: of reinforce that you essentially the US market is falling
Speaker 1: from the peak. This is now, I would say, christa
Speaker 1: clear after an incredible revumped in the last seven years.
Speaker 1: It looks like American consumer I have now the author
Speaker 1: they want. We saw some disappointed the numbers worse than
Speaker 1: the estimator. Uh, just some rosie number from Example to Yota.
Speaker 1: And the global trend remains the same. Essentially, American consumer
Speaker 1: are moving away from sedan to suv and and and
Speaker 1: trucks and and this is a trend which is there
Speaker 1: to stay. Yeah, tough for the automakers, right when there's
Speaker 1: so many options out there when it comes to sedans,
Speaker 1: and especially if you've got consumers shifting away. I should
Speaker 1: point out Four Motors down two point three percent as
Speaker 1: we speak. General Motors shares also under pressure, down about
Speaker 1: three point three percent. Let's talk a little bit about
Speaker 1: that kind of suv market. I've had them, I love them. Um.
Speaker 1: You talk about Ferrari, you know, more so known for
Speaker 1: its luxury vehicles and high end vehicles. But they're up
Speaker 1: to something. What specifically I mean, Ferrari is going to
Speaker 1: do a really transformation strategy. Ferrari is the most profitable
Speaker 1: car company in the market, the one most profitable in
Speaker 1: terms of margins. He makes margin closed to last week
Speaker 1: car companies. And also the shares that RAD shares this
Speaker 1: year has overperformed the auto industry. They're up about seventy
Speaker 1: and today after our story, they reached a new record high. Uh.
Speaker 1: Ferrari was pan off from vias Uh into douzen and
Speaker 1: sixteen and it's now worth more than its former parent company.
Speaker 1: Why because of this incredibly high margins they make with
Speaker 1: these supercars, and now that they have reached they're going
Speaker 1: to reach this year the milestone of one billion euros
Speaker 1: in profits. The CEO Surgal mercanities searching for ways to
Speaker 1: improve profits without risk losing the exclusivity of the brand.
Speaker 1: So this is why he's considering new seguments, is what
Speaker 1: sources told us. And he's going to present a new
Speaker 1: business plan next year is going to be his last
Speaker 1: plan at Ferrat is going to be a five year
Speaker 1: plan and the plan, which will target to double profit,
Speaker 1: will include the expansion into what at Seratri they called
Speaker 1: Ferrari utility vehicle. Don't call it an suv. Marciona said,
Speaker 1: you have to shoot me for it's going to be
Speaker 1: a sportive Ferrari, but a little bit higher and with
Speaker 1: more rooms, especially in the on the on the weird seat. Uh.
Speaker 1: This is you know, something that may pull some risk
Speaker 1: to Ferrari strategies. Only the risk to lose your DNA,
Speaker 1: but this is clearly an opportunity. And I mean I
Speaker 1: see that we saw today somehow that investors are with
Speaker 1: Marciana to jump to new records. Your story is great.
Speaker 1: You do say you know that he is considering or
Speaker 1: evaluating a four seed family car that offers more space
Speaker 1: than its current UH two door GtC for loose so
Speaker 1: and it's internally dubbed the Ferrari utility vehicle. I mean,
Speaker 1: it sounds like they're trying to create another segment within
Speaker 1: the vehicle market. Is that the case? This is what
Speaker 1: this is probably what marcon I really want, uh is
Speaker 1: the only comments he made on the made on the
Speaker 1: record with with ANALYSM reporters so far is that they
Speaker 1: are exploring his way to go beyond supersport car. Sources
Speaker 1: told us that they're really trying to redefine the segment.
Speaker 1: You know, there is a big crowd out there. Also
Speaker 1: in the last two week have depensically one Lamborghini is
Speaker 1: coming next year with his first ever STUV. FERRAI wants
Speaker 1: to do something different. They really don't want to lose
Speaker 1: their DNA. It's not an easy task, but it is
Speaker 1: probably what Marconnessey could see as his heritage for the brand.
Speaker 1: Because he's stepping down in two thousand and twenty one.
Speaker 1: The plan will be over in two thousand and twenty too,
Speaker 1: So Esparanello, the plants in Italy, we're all Ferrari built.
Speaker 1: They are, you know, studying his way to to to
Speaker 1: create a roomy vehicle without being not sporty. They haven't
Speaker 1: decided yet it would be four doors or two doors cars.
Speaker 1: They're finally they're trying to find their way to somehow
Speaker 1: high the rear doors. I mean it's gonna be interesting.
Speaker 1: And obviously, you know, after our story today, there were
Speaker 1: some reaction from you know, Ferrari cicionados. You see on
Speaker 1: Twitter people say, oh no, why and actually ferraris, we
Speaker 1: just wants forecast still the steel. There is a used
Speaker 1: demand especific maintain China tomaso. Like the rest of the industry.
Speaker 1: We just got about thirty seconds left here. Like the
Speaker 1: rest of the industry. Though, Ferrari also you know, embracing
Speaker 1: hybrids and the like. Yeah, that's for sure. I mean
Speaker 1: they're going to build over ten thousand cartias, so they're
Speaker 1: gonna lose the statutes of small vast or manufacturers, so
Speaker 1: they're gonna have more stringence, full autonomy rules. How they're
Speaker 1: going to meet them. Building ivres and ibis also attract
Speaker 1: you a younger customer. They already have a couple of
Speaker 1: ibry day cost two million dollars one a half million
Speaker 1: dollars because they use the electric power engine to boost
Speaker 1: the power and not to justice to save on a mission. Well,
Speaker 1: and I'm just taking a look at a d R.
Speaker 1: A is a ferrari that trade here in the United States.
Speaker 1: Great ticker race. Uh, they're up three point one percent
Speaker 1: at one o eight a share, so they're rallying on
Speaker 1: this news. Those a d R, by the way, are
Speaker 1: up eighty six percent here in the United States. Tomasa,
Speaker 1: thanks so much for breaking it all down. Tomaso Ebb Heart,
Speaker 1: Senior reporter oft Bloomberg News follows the auto sector for us.
Speaker 1: Joining us on the phone from Milan. You are listening
Speaker 1: to Bloomberg Markets on this Tuesday. I'm Carol Masser and
Speaker 1: this is Bloomberg