Employees stand on the production line at the new Ferrari NV E Building factory in Maranello, Italy, Friday, June 21, 2024.
Francesca Volpi | Francesca Volpi Bloomberg | Getty Images
Ferrari is considered a special case in Europe’s auto sector, even though many auto giants are under threat from U.S. tariffs.
President-elect Donald Trump vowed on Monday to impose hefty tariffs on China, Canada and Mexico as one of his first actions in office, threatening to shake up the auto industry’s supply chain and raising concerns for investors. There are growing concerns about
President Trump’s proposal includes imposing an additional 10% tariff on all Chinese products imported into the United States and a 25% tariff on all products imported from Canada and Mexico. .
Auto stocks fell on the news, which could have a significant impact on U.S. and European manufacturing, many of which build factories in Mexico and rely on auto parts suppliers.
The fact that Europe was not mentioned in President Trump’s first tariff announcement will likely be seen as welcome news for European Union policymakers, but the 27-nation member state is concerned that President Trump will They are likely concerned that it is only a matter of time before they start paying attention.
However, Ferrari is expected to be protected from most of the fallout.
“Whatever the tariffs are, for Ferrari, it’s the one exception to not starting production in the U.S.. Everything happens in Maranello, Italy,” Morningstar equity analyst Lela Suskin told CNBC in a video call. spoke.
“In Ferrari’s case, if it’s 10%, 20% or even 30% (tariffs), given the customer they’re targeting and how expensive the cars are already, they’re probably going to pass it on to the consumer. This can easily be passed on to prices.”
In an effort to increase U.S. revenue, President Trump has previously promised to impose flat tariffs of 10% or 20% on all products imported into the U.S., including across a wide range of trade-dependent sectors such as autos. was causing concern.
For Morningstar’s Suskin, even a 30% U.S. tariff on all goods imported from Europe may not deter would-be customers from buying Ferraris. “It’s ridiculous, but it is what it is,” she added.
A Ferrari spokesperson did not immediately respond to a request from CNBC for comment.
“I’m less price sensitive than most people.”
Tom Narayan, a global auto analyst at RBC Capital Markets, echoed that view, saying Ferrari appears positioned to pass on the price increases if President Trump follows through on his promise to raise tariffs.
Most analysts and investors recognize that the Italian automaker is unique among its European peers in this respect, says Thomas Besson, head of automotive sector research at Kepler-Shoebreu. It is said that there is
“Time will tell, but that’s probably the case,” Besson told CNBC in an email.
Ferrari has been on a roll this year, outselling its European rivals. The Milan-listed company’s shares have risen more than 34% since the beginning of the year, significantly outpacing France’s Renault and Germany’s Mercedes-Benz Group.
“We do not expect Ferrari to begin production in the U.S.,” OddBHF auto analyst Anthony Dick told CNBC in an email.
“There are not only brand reasons, but also (and perhaps more important) industrial reasons. This would require the group to set up a local supply base, which does not seem feasible for us. ‘ he added.
Entrance to the original Ferrari factory in Maranello. The Emilia Romagna Grand Prix will be held this weekend at the Autodromo Internazionale Enzo e Dino Ferrari circuit in Italy.
David Davis – Pennsylvania Images | Pa Images | Getty Images
“At this stage it is unclear how tariffs will affect demand, but it would be reasonable to assume that Ferrari customers are less price sensitive than many other customers,” Dick said. , noted that the group’s luxury car competitors would also face similar tariff measures.
“Porsche is a little different”
Prospect of additional US tariffs likely to be ‘much bigger hurdle’ for Germany porschesays Mr. Besson of Kepler Chevreux.
Like Ferrari, which produces cars exclusively in Italy. volkswagenPorsche has traditionally manufactured luxury models in Germany.
“Porsche is a little different,” said Morningstar’s Suskin.
“While we can pass on a 10% tariff, it may be a little more difficult to pass on a larger tariff, such as 30%, to our customers,” she continued.
A worker checks the quality of the new all-electric Porsche Macan at the Porsche assembly plant in Leipzig, Germany, on May 6, 2024.
Jens Schlüter | Getty Images News | Getty Images
“They could piggyback on their parent company, Volkswagen, which has some spare capacity in the U.S., but building a Porsche-specific production line would require a significant (capital) investment.”
Porsche stock has fallen about 26% since the beginning of the year.
A Porsche spokesperson did not immediately respond to CNBC’s request for comment.
