# Maserati aims at driving margins higher before any spin-off talk Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Maserati Aims for 15% Operating Profit Margin in 12 Months Meta Description: Discover Maserati's ambitious plans to boost operating profit margin to 15% by 2023 and 20% by 2030, signalling potential for a standalone business. URL: https://financedigest.com/maserati-aims-at-driving-margins-higher-before-any-spin-off-talkhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-21t080759z1lynxmpej2k07grtroptp4stellantis-maserati-1736814291986-compressed.jpg) By Giulio Piovaccari MILAN (Reuters) – Maserati aims to increase its margin on operating profit to 15% in the next 12 months and sees a longer term target of 20% by the end of this decade, according to the CEO of the Stellantis luxury brand. The margin stood at 8.7% last year, though topped 10% in the second half. Davide Grasso, who took charge of Maserati in 2019, said that once that target was met, parent company Stellantis could start evaluating in earnest a spin-off of the 109-year old automaker. Stellantis CFO Richard Palmer in November said [Maserati could be a stand-alone business](https://www.financedigest.com/the-maserati-100-one-hundred-business-disruptors-challenging-the-establishment.html " ‘The Maserati 100’ One Hundred Business Disruptors Challenging The Establishment") in the future, but that was not going to happen any time soon. Maserati, a separate and autonomous unit within Stellantis, posted a 201 [million euro](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") ($214 million) adjusted operating profit last year after returning to the black in 2021. Grasso said a focus on quality, giving the brand strong pricing power, would help Maserati to further [boost its profitability](https://www.financedigest.com/inflation-boosts-jeronimo-martins-q4-profit-but-dents-margins.html "Inflation boosts Jeronimo Martins’ Q4 profit but dents margins"). Its first intermediate margin [target of 15% is to be met “more or less by the end](https://www.financedigest.com/capgemini-comfortable-with-top-end-2022-targets-but-sees-demand-slowing.html "Capgemini ‘comfortable’ with top end 2022 targets but sees demand slowing") of first quarter of 2024. But we have 20% as our polar star,” he said, adding he aimed to book [margin improvements every year](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year"), so ideally reaching the 20% target by 2029-2030 “if we do the right things. He said that goal could be [hit “even earlier possibly”](https://www.financedigest.com/the-brexit-effect-hits-uk-salaries-but-possibly-boosts-tourism.html "The Brexit Effect Hits UK Salaries, but Possibly Boosts Tourism"). NO DISCOUNT Porsche has also [set a long-term operating margin goal](https://www.financedigest.com/britain-sets-5g-goal-says-no-magic-number-of-operators.html "Britain sets 5G goal, says no ‘magic number’ of operators") of 20%. For Ferrari, the [margin already runs well above the 20%](https://www.financedigest.com/ubisoft-vows-to-get-back-to-operating-margin-above-20-in-medium-term.html "Ubisoft vows to get back to operating margin above 20% in medium term") threshold. Grasso said that the number of Maserati models — currently based on Levante and Grecale SUVs, the MC20 sportscar, GranTurismo grand tourer (GT) and Quattroporte luxury sedan — does not need to be expended. Maserati has a margin-based and not a volume-based strategy, he added. We’ll never trim our [prices to reach certain volumes targets](https://www.financedigest.com/hsbc-ups-price-targets-on-greek-banks-with-eurobank-piraeus-top-picks.html "HSBC ups price targets on Greek banks, with Eurobank, Piraeus top picks"). Discount is not a word in our vocabulary.” Maserati sold 25,900 [cars last](https://www.financedigest.com/brand-loyal-brits-have-longer-relationships-with-their-car-than-their-last-lover.html "BRAND-LOYAL-BRITS HAVE LONGER RELATIONSHIPS WITH THEIR CAR THAN THEIR LAST LOVER") year. The starting [prices for the Levante and Grecale SUVs are around 97,000 euros](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal") and 76,000 euros. Asked whether [reaching the margin goals](https://www.financedigest.com/renault-to-reach-its-goal-on-integrated-electric-vehicles-chain-before-2030-ceo.html "Renault to reach its goal on integrated electric vehicles chain before 2030 -CEO") would mark the right moment for parent group Stellantis to assess a spin-off, Grasso said: “Let’s meet the 20% target, then we’ll think about it. Maserati is now launching its new GranTurismo grand tourer in combustion engine and fully-electric (BEV) versions, with an entry [price of around 182,000 euros](https://www.financedigest.com/euro-zone-likely-entering-recession-as-price-rises-hit-demand-pmi.html "Euro zone likely entering recession as price rises hit demand -PMI"). It has promised a BEV version would be available for all [models in its range by 2025 and that it would become an electric-only brand](https://www.financedigest.com/learning-from-the-disrupters-how-finance-brands-can-build-transformative-business-models.html "Learning from the disrupters – how finance brands can build transformative business models") by 2030. “Maybe earlier,” Grasso said. The automaker this year will also [issue a BEV version of the Grecale SUV it launched](https://www.financedigest.com/gsk-expects-us-launch-of-rsv-vaccine-with-no-supply-issues.html "GSK expects US launch of RSV vaccine with no supply issues") in 2022. [Next year](https://www.financedigest.com/eu-could-face-gas-shortage-next-year-iea-warns.html "EU could face gas shortage next year, IEA warns") the brand will launch a limited-series, 700-horse power, track-only hypercar, internally dubbed Project24. Based on the MC20, it will cost 1 [million euros](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros") and only 62 will be produced. “It’s sold out already,” Grasso said. ($1 = 0.9410 euros) (Reporting by Giulio Piovaccari; editing by Keith Weir) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---