Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.
Ferrari NV has temporarily halted the production of its sports cars in Italy because of the spread of the coronavirus.
The Italian supercar maker is experiencing its “first serious supply chain issues, which no longer allow for continued production,” it said in a statement on Saturday. It will suspend production at the Maranello and Modena plants until March 27.
Ferrari’s decision follows a similar move by Volkswagen AG’s Lamborghini, which suspended production in Italy until March 25.
The country has become the epicenter of the coronavirus outbreak outside of China, with more than 15,000 confirmed cases and a death toll of more than 1,200. The government has put Italy on virtual lockdown as it tries to contain the spread.
All the activities not related to manufacturing will continue on a regular basis, Ferrari said. The company will continue to pay its 4,000 workers in Italy, according to people familiar with the matter.
Ferrari last month boosted its 2020 forecasts for sales and earnings after posting record deliveries, a sign that Chief Executive Officer Louis Camilleri’s model-range renewal has been bearing fruit. The company produced more than 10,000 cars for the first time last year.
Ferrari is preparing “for a strong restart” when the temporary halt is over, Camilleri said in the statement.
Source: Read Full Article