The CEO of Stellantis (STLAM.MI) luxury brand Maserati wants to improve its operating profit margin to 15% in 12 months and 20% by the end of the decade.
Last year, the margin was 8.7% but reached 10% in the second half.
In 2019, Maserati CEO Davide Grasso suggested that Stellantis may begin assessing a spin-off of the 109-year-old carmaker once that aim was accomplished.
In November, Stellantis CFO Richard Palmer suggested Maserati may become a stand-alone corporation, but not soon.
After returning to profitability in 2021, Maserati, a Stellantis subsidiary, achieved a 201 million euro ($214 million) adjusted operating profit last year.
Grasso said Maserati could increase profitability by focusing on quality, which gives the brand price power.
“More or less by the end of first quarter 2024” is their first intermediate margin objective of 15%.
“But we have 20% as our pole star,” he added, adding that he wanted to enhance book margins every year to achieve 20% by 2029-2030 “if we do the right things.”
“Much sooner potentially,” he suggested.
Porsche (P911 p.DE) has a 20% long-term operating margin objective. Ferrari (RACE.MI) margins exceed 20%.
Grasso claimed Maserati’s Levante and Grecale SUVs, MC20 sportscar, GranTurismo GT, and Quattroporte luxury sedan don’t need to be expanded.
He said Maserati’s goal is margin-based, not volume-based. “We’ll never lower pricing to meet volume goals. We don’t say discount.”
25,900 Maseratis sold last year. Levante and Grecale SUVs start at 97,000 and 76,000 euros, respectively.
“Let’s accomplish the 20% objective, then we’ll think about it,” Grasso said when asked if Stellantis should consider a spin-off after meeting margin goals.
Maserati’s new GranTurismo grand tourer is available in the combustion engine and BEV models, starting at 182,000 euros.
It pledged to provide BEV versions of all its vehicles by 2025 and become an electric-only brand by 2030.
Grasso suggested before.
The 2022 Grecale SUV will get a BEV variant this year.
Project24, a track-only, 700-horsepower hypercar, will debut next year. The MC20-based car will cost 1 million euros and be limited to 62.
“Sold out,” Grasso remarked.
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