Ferrari Plans Big Jump in Product Development Spending

Ferrari SpA Chairman Luca di Montezemolo tells the Financial Times the supercar maker will boost spending on powertrains and vehicle development to €2 billion between now and 2017 from €1.4 billion in the previous five years.

Montezemolo tells the newspaper the program will be funded internally. Ferrari has more than €1.5 billion in cash and reported a positive cash flow of nearly €200 million in the first half of 2013.

The iconic sports car maker is determined to maintain ultra performance while meeting tightening emission standards without resorting to hybrid powertrains whenever possible. "This is about being innovative," Montezemolo 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.