Ferrari CEO Louis Camilleri revealed during a first-quarter earnings call on Tuesday that the automaker will not provide engines and components to Maserati after their current contract.
For Ferrari, this is a small loss in revenue. But the assets freed up from this decision will be diverted toward expanding production of existing Ferrari cars and engines. The brand is looking to add 15 new cars by 2022, adding nearly 2,000 production units to the company's annual total.
Ferrari CEO Louis Camilleri
“Eventually, we will no longer supply engines to Maserati, which actually from our perspective is actually a good thing, both from a margin perspective, but also the fact that we can transfer a lot of the labor that's been focused on the engines to the car side of the business.”
A precise date for when this will happen has not been confirmed, just that it will end no later than 2022.
Part of the reason for this decision may have been due to Maserati's plans for electrification. They're looking to add at least a plug-in hybrid option to every model, with their sights on full electric options in the future.
But they don't intend on giving up on combustion engines as a whole, according to Maserati North America Chief Al Gardner. For these engines, they'll likely go to parent company Fiat Chrysler for engine parts.
I'd say that this might make the Maserati brand less prestige, but it's all about the swagger of the name in the end.