Michael Tyndall

Michael Tyndall inquired about the low operating leverage in North America despite strong shipment and revenue growth, and the impact of the Brazilian real on South America's industrial performance and future margins.

Answer

CEO Antonio Filosa explained that North America's H2 2025 growth was strong but mix was affected by technical issues in truck production, which are now solved. He expects mix improvement in 2026 from increased light and heavy-duty truck production and less PHEV sales. For South America, he cited FX headwinds in Brazil and unrecovered price differences in Argentina due to peso devaluation in H2 2025, but expects profitability growth in 2026. CFO João Laranjo added that a specific supplier provision impacted South America's H2 2025 industrial costs, which will not carry over.

Michael Tyndall of HSBC asked about the evolving tariff situation related to Mexico, inquiring about any progress on trade deals and the potential economic impact on the new Jeep Cherokee, which is slated for production in Mexico.

Answer

CEO Antonio Filosa stated that Stellantis is in constructive dialogue with U.S., Mexican, and Canadian policymakers, arguing that the high U.S. content in vehicles built in Mexico and Canada should be recognized in tariff structures. He confirmed the Cherokee will be built in Mexico and that the company is actively working on production and transformation cost reductions to enhance its profitability and offset any tariff effects.

Michael Tyndall from HSBC asked if 2026, with its model changeovers, F1 cost inflation, FX headwinds, and incomplete F80 allocation, represents the most challenging year in Ferrari's strategic plan. He also inquired if repeat customers have seen the Ferrari Luce in its entirety and their initial reactions.

Answer

Benedetto Vigna, Ferrari's CEO, dismissed the notion of 2026 being the toughest year, asserting that the business plan is stable, linear, and focused on growth. He clarified that clients have only viewed the Luce's interiors, with the full vehicle reveal scheduled for May 25. Vigna noted very positive client feedback on the interiors, highlighting their appreciation for the 'we' community aspect and the car's unique motorization, with pricing to be announced post-unveil.

Michael Tyndall asked if 2026 is considered the toughest year in Ferrari's plan through 2030, given various headwinds, and inquired about repeat clients' reactions to the Ferrari Luce's interiors and any indications of their thoughts or pricing expectations.

Answer

CEO Benedetto Vigna clarified that 2026 is not considered the toughest year, emphasizing that the business plan is stable and linear, and 2026 is projected as a year of growth. He noted that clients have only seen the interiors of the Ferrari Luce, with the full unveil scheduled for May 25th. Client indications are very positive, appreciating the availability of all motorizations, and pricing will be shared after the complete unveil process.

Michael Tyndall inquired about the F1 budget for next year, specifically if the increase from $135M to $215M represents an incremental $18M cost or if scope changes reduce the P&L impact. He also asked about Ferrari's flexibility regarding FX on the order backlog, which extends into 2027.

Answer

CFO Antonio Piccon confirmed that the F1 budget increase would flow through as a cost increase. Regarding FX on the order backlog, he stated that Ferrari, in principle, can adjust pricing with a 90-day anticipation based on dealer agreements, with decisions made on a country-by-country basis depending on the magnitude of exchange rate movements.

Michael Tyndall inquired about the impact of the increased F1 budget for next year on Ferrari's P&L and the company's flexibility to offset foreign exchange impacts on its order backlog, which extends into 2027.

Answer

Antonio Piccon (CFO) confirmed that an increase in the F1 budget would directly translate into higher costs. He noted that Ferrari has the flexibility to adjust pricing with a 90-day anticipation, making decisions on a country-by-country basis depending on the magnitude of exchange rate movements.