Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Ferrari to close plants in Italy for two weeks in coronavirus response

Published 14/03/2020, 16:45
Updated 14/03/2020, 16:45
© Reuters. Ferrari 812 GTS is unveiled during a presentation of two new Ferrari models at an event at the company's headquarters in Maranello

© Reuters. Ferrari 812 GTS is unveiled during a presentation of two new Ferrari models at an event at the company's headquarters in Maranello

MILAN (Reuters) - Luxury carmaker Ferrari (MI:RACE) said on Saturday it closed its two plants until March 27 in a response to the coronavirus outbreak in Italy and an emerging shortage of parts.

Ferrari adds to a string of Italian manufacturers which have closed plants or slowed production rates in response to the virus emergency, threatening to disrupt Europe's struggling automotive industry.

Ferrari said in a statement it had so far ensured production continuity, as it already implemented all the health measures decided by the Italian government at the two sites, located in hometown Maranello and in Modena, in the northern Emilia Romagna region.

However it added the company was "now experiencing the first serious supply chain issues, which no longer allow for continued production".

Premium brakes maker Brembo (MI:BRBI), whose clients include Ferrari, said on Friday it would temporarily close its four Italian plants next week.

All non manufacturing activity will continue regularly, through smart working, Ferrari said.

A source close to the matter said the company will adopt further measures during the closures period, including sanitisation of the sites' areas and added that no contagion cases were recorded among Ferrari's workers to date.

Italy agreed a series of measures on Saturday to improve health controls in factories, offices and other workplaces that have been allowed to stay open during the country's coronavirus lockdown.

Ferrari's workers will continue to receive their full salary and will not be requested to use their day-off allowance during the closure period, the source said.

Chief Executive Louis Camilleri said Ferrari took the decision to close its plants out of respect for its workers, "for their peace of mind and those of their families".

Earlier this week car maker Fiat Chrysler (MI:FCHA) and industrial vehicle maker CNH Industrial (MI:CNHI) said they were temporarily halting operations and slowing production rates at some of their Italian plants to comply with government's anti-coronavirus requirements.

Tyremaker Pirelli (MI:PIRC) said it was cutting production at its Settimo Torinese plant, near Turin, after a worker tested positive for the coronavirus.

© Reuters. Ferrari 812 GTS is unveiled during a presentation of two new Ferrari models at an event at the company's headquarters in Maranello

Ferrari said its Formula One team Scuderia Ferrari had also suspended its operational activities.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.