The company fears there might be supply issues.
Ferrari was one of the first manufacturers to halt production at its Maranello plant in Italy due to the coronavirus outbreak. Initially, the company’s plans were to shut down its factory until March 27 but the unprecedented situation in the country is forcing the Prancing Horse to extend the production stop order.
Ferrari’s new decision is to resume production on 14 April 2020. It’s very important to note that this will happen only if the supply chain works without interruption and is able to provide all the necessary parts and components for the production process.
“All activities that can be conducted in smart working will continue to be performed as has been the case in recent weeks,” Ferrari explains in an official press release. “The company will continue to cover all days of absence to those unable to take advantage of this solution.”
The Maranello-based firm also says that “given the huge uncertainty and lack of predictability that the COVID-19 has created,” it will be in a position to provide further financial guidance to the investment community during a call on May 4, when its first-quarter earnings’ will be reported.
Just a few days after Ferrari announced it’s temporary stopping production on March 14, the supercar automaker was joined by rival manufacturer Lamborghini. Fiat Chrysler Automobiles, which currently owns Maserati, also said it is halting production in Europe on March 16.
According to the latest data from Worldometers, currently, there are 62,013 active COVID-19 cases in Italy, 3,612 of which are being described as critical.
Maranello, 27 March 2020 – Ferrari N.V. (“Ferrari” or the “Company”) (NYSE/MTA: RACE) announces today that subject to supply chain continuity it now plans to resume production as of 14 April 2020.
All activities that can be conducted in smart working will continue to be performed as has been the case in recent weeks. The Company will continue to cover all days of absence to those unable to take advantage of this solution.
Given the huge uncertainty and lack of predictability that the Covid-19 has created, the Company is taking all appropriate actions to assure the wellbeing and welfare of its employees and that are deemed to be in the best interest of all stakeholders. The Company anticipates that it will be in a position to provide further financial guidance to the investment community during its first quarter earnings’ call on May 4, 2020. It remains confident that in view of its brand equity, strong balance sheet and sound business model it will continue to create value for all stakeholders beyond the near term uncertainties.