Ferrari Boosts Product Development Budget 43%

Ferrari SpA will hike its spending on powertrains and vehicle development to $2.7 billion between now and 2017 from $1.9 billion in the previous five years.

Chairman Luca di Montezemolo tells the Financial Times that the investment, which does not include the company's Formula One racing activities, will be funded internally. The newspaper notes that Ferrari has more than €1.5 billion in cash and a positive cash flow of nearly €200 million in the first half of 2013

Montezemolo says iconic sports car maker, a unit of Fiat SpA, is determined to maintain ultra performance while meeting tightening emission standards without resorting to hybrid powertrains whenever possible. "This is about being innovative," he declares.

Ferrari has improved the average fuel efficiency of its supercars 35% in the past four years and cut carbon dioxide emissions by roughly 25%, according to the FT.