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(Bloomberg) -- Ferrari NV is introducing a new “entry-level” supercar while Mercedes-Benz is testing the segment’s upper price limit as the rivals vie for the most lucrative customers.

Ferrari is rolling out the 200,000-euro ($240,000) Portofino, which will replace the Italian brand’s California convertible, at the Frankfurt International Motor Show. Mercedes’s AMG high-performance sub-brand is highlighting the Project ONE concept, which sports Formula 1 hybrid technology and has a whopping price tag of 2.2 million euros.

The models are crucial to the strategic plans of both automakers. Ferrari is banking on the Portofino to help boost sales to 9,000 cars in 2019 -- up from a target of 8,400 this year. For parent Daimler AG, AMG is critical to Chief Executive Officer Dieter Zetsche’s effort to show that his electrified offerings will still be upscale and sporty.

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To ratchet up the exclusivity factor, AMG will make just 275 of the Project One, which has a fin running down the middle and reaches a top speed of 350 kilometers per hour (220 mph). In line with Mercedes’s 10 billion-euro plan for electrified models, the V6 gas engine will be complemented with plug-in hybrid technology. The extra battery boost will also make the two-seater more responsive on initial acceleration, hitting 200 kph in six seconds.

“The objective is forward-looking technology, ultimate performance, the best lap times,” Zetsche said Monday night at the unveiling of the Project One featuring race-car driver Lewis Hamilton. “And all of it road legal.”

Ferrari, spun off from Fiat Chrysler Automobiles NV in 2016, has been gradually increasing sales to boost profit, with a goal of eventually pushing past the 10,000 mark for deliveries. The Portofino’s sales will amount to about 3,200 cars, 40 percent more than the California’s deliveries this year, according research company IHS Markit.

Chief Executive Officer Sergio Marchionne is equipping the hard-top convertible with a 600 horsepower engine can accelerate from 0 to 100 kph in as little as 3.5 seconds. The car is lighter and its 8-cylinder engine offers 40 horsepower more than its predecessor.

The Maranello-based manufacturer is showing off the model to the wider public for the first time on Tuesday following a customers-only unveiling last week in the picturesque Italian harbor town of Portofino. The event was part of the 70th-anniversary celebration of the carmaker’s founding.

While Ferrari’s growth effort might risk diluting the brand’s exclusive cachet, Marchionne has complemented the strategy by offering exclusive limited-edition models, such as the $2.1 million LaFerrari Aperta convertible. The 65-year-old CEO is now seeking to sustain earnings with a five-year plan to be rolled out next year aimed at securing Ferrari’s independence as the industry grapples with the strains of shifting to electric cars.

The business plan is likely to include adding “utility vehicles” to Ferrari’s line-up, according to Marchionne, who avoids using the term SUV. The initial focus would be a roomy four-seat model, part of an expansion beyond the nameplate’s traditional supercar niche in a bid to double profit by 2022, people familiar with the matter said in August.

To contact the reporters on this story: Tommaso Ebhardt in Frankfurt at tebhardt@bloomberg.net, Elisabeth Behrmann in Frankfurt at ebehrmann1@bloomberg.net.

To contact the editors responsible for this story: Vidya Root at vroot@bloomberg.net, Chris Reiter at creiter2@bloomberg.net, Chad Thomas, Tom Lavell

©2017 Bloomberg L.P.

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