Ferrari looking for 'stability and focus', aims to improve performance by 2021

This year has been very challenging for the chief executive of Ferrari, Louis Camilleri.

Like many automakers, Ferrari has been hurt by the pandemic. Last month, the company, which also includes the Formula One team, announced second-quarter revenue of $675 million, down from about $1.2 billion in the same quarter last year, after the lockdown forced Ferrari to produce 2,000 fewer cars.

The problems are equally acute in Formula One. The team has won 61 points in the first seven rounds of the season, its lowest since 2009. In an interview, Camilleri said, “There’s no denying we are having a very difficult season.”

It would be easy for Camilleri to make changes, especially at the top, something the company has done with frequency over the years. Mattia Binotto was appointed team principal in January 2019 and is Ferrari’s fourth since Jean Todt stepped down from the role at the end of 2007. In comparison, Christian Horner has been team principal of Red Bull since 2005, and Toto Wolff has run Mercedes Motorsport since 2013.

“I have to say I have every confidence in Mattia Binotto and his team,” Camilleri said. “The results aren’t there to prove what I’m saying, but these things take time. Regretfully in the past, there has been too much pressure and a history of people being let go. There was somewhat of a revolving-door atmosphere, and I’m putting a stop to that.

“What we need is stability and focus. If you look at Red Bull’s period of winning championships, Mercedes today, other than talent, one of the key things they had was stability, and that’s something frankly our team has been lacking.”

He praised the Todt era, during which the team won its first constructors’ title in 16 years in 1999. From 2000 to 2004, Ferrari won an additional five team championships and Michael Schumacher five drivers’ titles.

“If I look back at the caliber of Jean Todt, Michael Schumacher, Ross Brawn,” he said, naming the technical director at the time, “and all those guys, it took them six years to get to what they ultimately became — this phenomenal winning team.”

“So I want to ensure that stability remains in place, despite the unbelievable pressure there is on the team, particularly from the Italian media, who are quite brutal at times, calling for heads to roll, but that’s not the solution. This doesn’t mean, however, that we won’t consider injecting additional skills and resources into the existing team.”

It has been 12 years since Ferrari won a constructors’ title and 13 since a driver was champion. To help solve that problem, in 2015 Sebastian Vettel was brought over from Red Bull, where he had won four drivers’ titles.

But his move coincided with the dominance of Mercedes and its driver Lewis Hamilton, and neither Vettel nor Ferrari have won another title since. In May, Ferrari announced that Vettel would be replaced by McLaren driver Carlos Sainz Jr. for next season.

“That was not an easy call, but we gave it, as you can imagine, a lot of thought,” Camilleri said. “Sebastian has added a lot of value to Ferrari, but ultimately we had to decide in terms of the longer-term future.” He added that having Sainz along with the driver Charles Leclerc “was in terms of our future plans a better fit.”

So Binotto, who worked under Todt, is making changes. He said he was grateful for the support of Camilleri and chair John Elkann.

“It’s not the first time we’ve had difficult seasons in Ferrari,” Binotto said. “I remember very well how difficult it is, so when moving into this job, I was certainly expecting difficult times.

“And when you’re in those times, it is important to maintain stability, to remain focused and really making sure, as a team, if there is anything that needs to be addressed or improved, you make the right decisions and move forward for something better.”

In early August, he relinquished the additional role of head of the technical department, which has been reorganized.

“Now we have got people in the right roles, having full responsibilities, clear objectives and full empowerment for doing their job,” Binotto said. “On my side, there are a lot of things I need to do, certainly keeping an eye and keeping them in the right position to deliver.”

The changes have been overseen by Camilleri, who, after his appointment in 2018, recognized that while there was “talent, commitment and passion” and a work ethic he found to be “quite extraordinary,” there was also room for improvement.

Camilleri, who is also chair of Philip Morris International, said Ferrari had been operating with “a relatively short-term view of things,” with its employees working independently rather than as a team. “I brought in a more long-term strategy, particularly in terms of investments, doubling our capital expenditure,” he said, which has risen to $887 million to $946 million, up from $414 million to $437 million.

“Getting people to work more in teams, that always takes a bit of time,” he said. “You don’t change cultures overnight.”

Camilleri’s plans also include evaluating other racing programs. Ferrari is considering IndyCar and, for the first time, running at Le Mans in the prototype category. It has traditionally raced only in the GT classes.

“We’re studying Indy,” he said. “It depends somewhat on the flexibility in terms of their future regulations,” he added, noting that the chassis and the aerodynamics are pretty standard, “which we understand they’ve done as a cost-containment exercise.”

But the company is not considering entering Formula E, despite other car companies’ fielding teams in the electric-car racing series.

“We don’t feel it’s necessarily road relevant, while a lot of Formula E is very standardized,” he said. “We like to go to places where we can differentiate ourselves. It’s hard to see where you can get a competitive edge.”

A return to the front in Formula One is Ferrari’s primary objective.

In an interview with Italian newspaper La Gazzetta dello Sport at the end of July, Elkann said that Ferrari was “not competitive,” and that the goal was “to start a new cycle from 2022,” when there will be a major change in the Formula One regulations devised to create closer racing.

At the time, Wolff said he was surprised by the comment. “Is it really possible to dismiss two seasons at once in order to prepare for 2022?” he asked.

“We are only allowed to start developing the new car in January next year, which means that even if you write off this season, it will not give you an advantage,” he added.

Günther Steiner, team principal of Haas, said he understood Elkann’s position. The team uses Ferrari engines, and Haas knows they are underpowered.

“I’m aware of the situation we are in, and I see what Ferrari are doing and the position they are in, so I was not very surprised by the statement from Mr. Elkann,” Steiner said.

Camilleri feels Ferrari could end the dominance of Mercedes in 2022. “I would hope that by 2021 we can certainly improve on this season,” he said.

“For 2022, the new regulations come into play, and every time there has been a huge revolution in terms of the technical framework, it gives an opportunity for teams to be one up on the others. That’s our hope.

“We have the talent, work ethic and determination to get there, and I’m confident we will be up there battling again.”