Here’s why Ferrari tapped an electronics veteran as its new CEO

Ferrari named Benedetto Vigna as its next chief executive on Wednesday. The electronics pioneer will take the helm on September 1^st and lead the company as the world moves to electric vehicles. Commenting on Vigna’s appointment, chairman John Elkann of the Italian luxury sports car manufacturer said:

Vigna is currently with STMicroelectronics

Vigna currently heads STMicroelectronics’ sensors group. Ferrari’s former chief executive Louis Camilleri battled with the Coronavirus last year and announced his departure in December citing personal reasons.

The sensors group that Vigna leads at STMicroelectronics generates similar revenue as Ferrari. It was the most profitable operating division for the French-Italian multinational last year. According to Financial Times, he was on the team that invented three-axis gyroscopes in 2010 that are widely used on a smartphone and change its screen ratio when rotated.

In his statement on Wednesday, Vigna said:

Vigna lacks experience of working for an automotive company

The announcement, however, came as a surprise for many as Vigna lacks experience of working for a car manufacturer as well as a luxury brand. He has, however, held top positions at some of the world’s most renowned technology companies. Analyst Philippe Houchois of Jefferies said on Wednesday:

Ferrari-parent Exor NV (BIT: EXO) hit an intraday high of £62.30 per share on Wednesday but closed the regular session down at £61.37 per share. At the time of writing, the Amsterdam-headquartered holding company has a market cap of £14.79 billion and a price to earnings ratio of 31.05.