# Ferrari, Fast Cars and a Changing World: Can Europe Stay in the Race? **Authors:** Colène GEOFFROY, Paul Bébéar **Categories:** Business **Last Updated:** 2026-01-12T18:52:40.323Z **Reading Time:** 4 min read --- ## Summary A brief look at the geopolitical forces transforming the auto industry and Ferrari’s strategy to stay innovative without losing its heritage. --- In a recent event blending geopolitics and automotive insights, Milan’s students explored how the car industry sits at the crossroads of technology, power, and culture. The discussion ranged from rare metals and China’s rise to the future sound of Ferrari engines in an electric era. At the heart of the session were the professor and Dennis De Munck, the Head of Employer Branding and University partnerships at Ferrari with a background at Deloitte and L’Oréal. Their guiding question: in a rapidly electrifying world, can Europe, and Italy’s most famous carmaker, keep their edge without losing their soul? ## Cars as a Strategic Battleground Few industries combine so much: cutting-edge technology, millions of jobs, complex supply chains, research centers, and iconic brands. The power to control car production shapes ecosystems globally. Three main powers compete: United States: Silicon Valley has reinvented the car with companies like Tesla. The 2022 Inflation Reduction Act injected about $370 billion into green energy, aiming to secure supply chains, reduce China reliance, and lead future mobility tech. China: The “electric dragon” controls 60% of batteries and key mineral refining. Shifting from “Made in China” to “Designed in China” reflects ambitions in design and innovation. ⁠Europe: Birthplace of brands like Ferrari or Porsche, but reliant on Asia for batteries and raw materials, currently working in a fragmented climate policy risks a loss of industry dominance. ## The New Industrial War: Metals and Value Chains Electric cars depend on rare minerals sourced mainly outside Europe : lithium from Australia, Chile, China; cobalt from Congo; nickel from Indonesia and Russia, making ecological transition a geopolitical battle fought over supply chains and technology standards. ## Europe’s Battery Push and Financial Pressures Europe aims to boost battery production with projects like Northvolt and ACC, yet relies on Asian suppliers for top-performance batteries today. ESG-driven investment demands rapid ecological shifts, challenging industries whose transformations unfold over years. ## A World Rebalanced: Global South and Europe Divided The rise of India, with its massive population and tech ambitions, signals shifting global power. Meanwhile, within Europe, a divide grows: northern countries embrace electrification and tech, while southern countries like Italy and Spain worry about job losses in traditional automotive sectors. ## Engines, Identity and Soft Power Cars symbolize national strength, with cities like Detroit, Stuttgart, and Modena as industrial icons. Italian marques like Ferrari don’t just build cars, “they inspire dreams”. European automotive design acts as cultural diplomacy, projecting craftsmanship and elegance worldwide. ## Students Debate: Heritage vs. Electric Future Some students see heritage evolving naturally with sustainability. Others argue for a balance,mostly electric models with room for hybrids and classics preserving engine sound and feel. Concerns include losing the emotional connection tied to roaring engines, though new electric sounds and designs might create fresh icons. A proposal emerged to grant special EU status to cars over 30 years old, preserving heritage amid climate policies. ## Inside Ferrari: Navigating a VUCA World Dennis explained Ferrari’s focus on value, rarity, and uniqueness amid a volatile and complex (VUCA : Volatility, Uncertainty, Complexity and Ambiguity) world. Ferrari’s prancing horse logo is globally recognized, even by children in China. The Ferrari red traces back to early racing color codes. The brand’s exclusivity is built on custom-made, built-to-order cars, including tailor-made and one-off models (notably owned by celebrities). Prices start around €400,000, with rare models appreciating over time. ## Hybrid, Electric and the Five Senses Approximately 43% of recent Ferrari deliveries are hybrid. A fully electric Ferrari is coming, featuring a patented, authentic Ferrari sound. Ferrari offers customers freedom to choose various engine types and styles, respecting tradition while embracing innovation. ## Sustainability, Longevity and Work Culture About 90% of all Ferraris ever built still exist today, highlighting long-term sustainability through maintenance and restoration. Inside Ferrari, teamwork and continuous improvement fuel timeless design and customer satisfaction. ## Can Europe Keep Its Edge? The future of the automotive industry hinges on critical minerals, battery production, and global alliances. Europe must balance climate goals, industrial jobs, and cultural heritage. Ferrari’s path, blending tradition and electric innovation, shows heritage and progress can coexist, provided strategic choices guide the way. ## Key Takeaways 1. The automotive industry has become a geopolitical battleground between the US, China, and Europe, with control over electric vehicle supply chains determining future dominance 2. Europe faces strategic vulnerability due to dependence on Asia for batteries and rare minerals needed for electric vehicles 3. Ferrari is successfully balancing heritage preservation with innovation through hybrid models and upcoming electric vehicles with authentic Ferrari sound 4. The global automotive landscape is shifting toward the Global South, while Europe grapples with internal divisions between northern tech adoption and southern job protection concerns 5. Luxury automotive brands like Ferrari demonstrate how cultural identity and sustainability can coexist through strategic choices and customer-focused innovation ## Frequently Asked Questions ### What percentage of Ferrari's recent deliveries are hybrid vehicles? Approximately 43% of recent Ferrari deliveries are hybrid vehicles, showing the brand's transition toward electrification while maintaining performance. ### Why is Europe vulnerable in the electric vehicle transition? Europe depends heavily on Asia for batteries and rare minerals like lithium, cobalt, and nickel, which are primarily sourced from Australia, Chile, China, Congo, Indonesia, and Russia. ### How does Ferrari maintain exclusivity in a changing market? Ferrari builds custom-made, built-to-order cars including tailor-made and one-off models, with prices starting around €400,000 and rare models appreciating over time. ### What makes the automotive industry geopolitically significant? The industry combines cutting-edge technology, millions of jobs, complex supply chains, and iconic brands, making control over car production strategically important for global ecosystems. --- *Article from [Albert's Deep Dive](https://deepdive.albertschool.com) - Albert School's Journal*