WEBVTT - Ebhardt on U.S. Auto Sales (Audio)

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<v Speaker 1>Right, right, right right, ferraris Ye, we're gonna talk about

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<v Speaker 1>Ferrari's're also going to talk about the overall auto market.

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<v Speaker 1>We had US automakers out with their sales numbers for

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<v Speaker 1>July disappointing to say the least. And on the other

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<v Speaker 1>side of the pond, we do have a story out

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<v Speaker 1>from Ferrari having to do with SUVs. Let's bring in

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<v Speaker 1>our own Tomaso ab Hearties Bloomberg News senior reporter follows

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<v Speaker 1>the auto industry for US and he joins us on

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<v Speaker 1>the phone from Milan. Uh, Tomaso, Um, let's just start

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<v Speaker 1>quickly with the US automakers. We had some disappointing numbers today. Um,

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<v Speaker 1>what's going on in the US auto industry? Does just

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<v Speaker 1>all the US consumers that they bought all the cars

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<v Speaker 1>they need? Hi? Hi, you diding it from from Milan? Yeah,

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<v Speaker 1>I mean the cycle is is quite clear at the

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<v Speaker 1>moment in the US l from March and today's number

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<v Speaker 1>of reinforce that you essentially the US market is falling

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<v Speaker 1>from the peak. This is now, I would say, christa

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<v Speaker 1>clear after an incredible revumped in the last seven years.

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<v Speaker 1>It looks like American consumer I have now the author

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<v Speaker 1>they want. We saw some disappointed the numbers worse than

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<v Speaker 1>the estimator. Uh, just some rosie number from Example to Yota.

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<v Speaker 1>And the global trend remains the same. Essentially, American consumer

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<v Speaker 1>are moving away from sedan to suv and and and

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<v Speaker 1>trucks and and this is a trend which is there

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<v Speaker 1>to stay. Yeah, tough for the automakers, right when there's

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<v Speaker 1>so many options out there when it comes to sedans,

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<v Speaker 1>and especially if you've got consumers shifting away. I should

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<v Speaker 1>point out Four Motors down two point three percent as

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<v Speaker 1>we speak. General Motors shares also under pressure, down about

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<v Speaker 1>three point three percent. Let's talk a little bit about

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<v Speaker 1>that kind of suv market. I've had them, I love them. Um.

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<v Speaker 1>You talk about Ferrari, you know, more so known for

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<v Speaker 1>its luxury vehicles and high end vehicles. But they're up

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<v Speaker 1>to something. What specifically I mean, Ferrari is going to

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<v Speaker 1>do a really transformation strategy. Ferrari is the most profitable

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<v Speaker 1>car company in the market, the one most profitable in

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<v Speaker 1>terms of margins. He makes margin closed to last week

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<v Speaker 1>car companies. And also the shares that RAD shares this

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<v Speaker 1>year has overperformed the auto industry. They're up about seventy

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<v Speaker 1>and today after our story, they reached a new record high. Uh.

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<v Speaker 1>Ferrari was pan off from vias Uh into douzen and

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<v Speaker 1>sixteen and it's now worth more than its former parent company.

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<v Speaker 1>Why because of this incredibly high margins they make with

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<v Speaker 1>these supercars, and now that they have reached they're going

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<v Speaker 1>to reach this year the milestone of one billion euros

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<v Speaker 1>in profits. The CEO Surgal mercanities searching for ways to

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<v Speaker 1>improve profits without risk losing the exclusivity of the brand.

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<v Speaker 1>So this is why he's considering new seguments, is what

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<v Speaker 1>sources told us. And he's going to present a new

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<v Speaker 1>business plan next year is going to be his last

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<v Speaker 1>plan at Ferrat is going to be a five year

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<v Speaker 1>plan and the plan, which will target to double profit,

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<v Speaker 1>will include the expansion into what at Seratri they called

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<v Speaker 1>Ferrari utility vehicle. Don't call it an suv. Marciona said,

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<v Speaker 1>you have to shoot me for it's going to be

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<v Speaker 1>a sportive Ferrari, but a little bit higher and with

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<v Speaker 1>more rooms, especially in the on the on the weird seat. Uh.

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<v Speaker 1>This is you know, something that may pull some risk

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<v Speaker 1>to Ferrari strategies. Only the risk to lose your DNA,

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<v Speaker 1>but this is clearly an opportunity. And I mean I

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<v Speaker 1>see that we saw today somehow that investors are with

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<v Speaker 1>Marciana to jump to new records. Your story is great.

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<v Speaker 1>You do say you know that he is considering or

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<v Speaker 1>evaluating a four seed family car that offers more space

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<v Speaker 1>than its current UH two door GtC for loose so

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<v Speaker 1>and it's internally dubbed the Ferrari utility vehicle. I mean,

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<v Speaker 1>it sounds like they're trying to create another segment within

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<v Speaker 1>the vehicle market. Is that the case? This is what

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<v Speaker 1>this is probably what marcon I really want, uh is

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<v Speaker 1>the only comments he made on the made on the

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<v Speaker 1>record with with ANALYSM reporters so far is that they

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<v Speaker 1>are exploring his way to go beyond supersport car. Sources

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<v Speaker 1>told us that they're really trying to redefine the segment.

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<v Speaker 1>You know, there is a big crowd out there. Also

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<v Speaker 1>in the last two week have depensically one Lamborghini is

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<v Speaker 1>coming next year with his first ever STUV. FERRAI wants

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<v Speaker 1>to do something different. They really don't want to lose

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<v Speaker 1>their DNA. It's not an easy task, but it is

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<v Speaker 1>probably what Marconnessey could see as his heritage for the brand.

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<v Speaker 1>Because he's stepping down in two thousand and twenty one.

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<v Speaker 1>The plan will be over in two thousand and twenty too,

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<v Speaker 1>So Esparanello, the plants in Italy, we're all Ferrari built.

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<v Speaker 1>They are, you know, studying his way to to to

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<v Speaker 1>create a roomy vehicle without being not sporty. They haven't

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<v Speaker 1>decided yet it would be four doors or two doors cars.

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<v Speaker 1>They're finally they're trying to find their way to somehow

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<v Speaker 1>high the rear doors. I mean it's gonna be interesting.

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<v Speaker 1>And obviously, you know, after our story today, there were

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<v Speaker 1>some reaction from you know, Ferrari cicionados. You see on

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<v Speaker 1>Twitter people say, oh no, why and actually ferraris, we

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<v Speaker 1>just wants forecast still the steel. There is a used

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<v Speaker 1>demand especific maintain China tomaso. Like the rest of the industry.

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<v Speaker 1>We just got about thirty seconds left here. Like the

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<v Speaker 1>rest of the industry. Though, Ferrari also you know, embracing

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<v Speaker 1>hybrids and the like. Yeah, that's for sure. I mean

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<v Speaker 1>they're going to build over ten thousand cartias, so they're

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<v Speaker 1>gonna lose the statutes of small vast or manufacturers, so

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<v Speaker 1>they're gonna have more stringence, full autonomy rules. How they're

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<v Speaker 1>going to meet them. Building ivres and ibis also attract

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<v Speaker 1>you a younger customer. They already have a couple of

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<v Speaker 1>ibry day cost two million dollars one a half million

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<v Speaker 1>dollars because they use the electric power engine to boost

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<v Speaker 1>the power and not to justice to save on a mission. Well,

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<v Speaker 1>and I'm just taking a look at a d R.

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<v Speaker 1>A is a ferrari that trade here in the United States.

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<v Speaker 1>Great ticker race. Uh, they're up three point one percent

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<v Speaker 1>at one o eight a share, so they're rallying on

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<v Speaker 1>this news. Those a d R, by the way, are

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<v Speaker 1>up eighty six percent here in the United States. Tomasa,

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<v Speaker 1>thanks so much for breaking it all down. Tomaso Ebb Heart,

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<v Speaker 1>Senior reporter oft Bloomberg News follows the auto sector for us.

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<v Speaker 1>Joining us on the phone from Milan. You are listening

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<v Speaker 1>to Bloomberg Markets on this Tuesday. I'm Carol Masser and

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<v Speaker 1>this is Bloomberg