Ferrari CEO outlines strategy to tackle looming U.S. tariffs

In Singapore, Ferrari CEO Benedetto Vigna revealed the company's proactive measures regarding potential tariffs on European automakers. These declarations were made during the CONVERGE LIVE event held on March 13, 2025. While he did not disclose specific details about the countermeasures, he emphasized that the company is in 'scenario planning' to adapt to the evolving trade policies. The ongoing uncertainty surrounding U.S. tariffs has raised concerns for many original equipment manufacturers, particularly as the auto industry heavily relies on cross-border supply chains. As Vigna noted, the threat of tariffs, which are reportedly anticipated to reach around 25%, affects how manufacturers plan their operations and pricing strategies. He expressed that attending to the fluctuations in trade policy is essential for maintaining competitiveness in the market. The industry faces profound implications, as the interconnectivity between manufacturers and suppliers spans multiple countries, thus any adverse changes could disrupt established operational frameworks. Notably, Ferrari stands in a unique position within the European automotive landscape. Unlike many of its competitors that manufacture vehicles in several countries, Ferrari exclusively produces in Italy. This singular operational focus allows Ferrari a strategic advantage, should it need to implement price adjustments in response to tariffs without risking losing market share, given its brand's strong identity and consumer loyalty. Vigna's remarks come amid Ferrari reporting a surge in net profit projections for 2024, driven by a well-curated product assortment and increasing consumer desire for bespoke vehicle features. Additionally, the firm is poised for the upcoming unveiling of its first fully electric vehicle, scheduled for October 9, 2025. This electric model is one of six new launches expected this year, aligning with the company's vision to adapt to changing market dynamics and meet evolving consumer preferences in a sustainable manner.