Ferrari closes two factories in Italy amidst the Coronavirus emergency

on Mar 14, 2020
Updated: Jun 1, 2022
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  • Ferrari closes two factories in Italy amidst the Coronavirus emergency.
  • Ferrari says supply chain disruptions now require a suspension halt until March 27th.
  • Brembo said on Friday that all 4 of its Italian plants will remain closed in the upcoming week.

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Owing to the rapid spread of Coronavirus in Italy, Ferrari (BIT:RACE) said in a statement on Saturday that two of its production houses located in Italy have been closed until March 27. Further decision regarding business operations, the luxury carmaker said, will be based on how the pandemic unravels in the next two weeks.

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The Coronavirus has also pushed multiple other manufacturers to halt or slow down operations in an attempt to contain the spread of the virus. Owing to such disruptions, the already struggling automotive industry in Europe is now at an even greater risk.

Ferrari Says Supply Chain Disruptions Now Require Production Halt

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Ferrari’s statement also highlighted that the company was strictly complying with the health measures recommended by the government in order to continue operations so far. The supply chain, however, Ferrari added, is now facing severe complications that require a temporary halt on production at its plants located in Modena and Maranello.

On Friday, Brembo, the premium brakes manufacturer that has Ferrari as the most notable client on its portfolio, also announced all 4 of its plants in Italy to remain closed in the next week. Resorting to smart working, Ferrari is expected to continue non-manufacturing activities normally in this time period.

According to the sources, the car manufacturer plans on implementing further measures directed at tackling the spread of the virus such as sanitization of the production sites. Ferrari has so far not reported any confirmed case of the virus among its workers.

While Italy is currently facing a nationwide lockdown, a handful of businesses have been allowed to remain operational during the crisis. The government in collaboration with the health authorities has devised a thorough set of strategies for such offices, companies, or factories to must comply with in order to minimize the risk of transmission.

Ferrari Pledges Full-Salary To Its Employees Without Using Day-Off Allowance

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The source also remarked that the luxury carmaker has pledged full-salary to all of its employees. During this period, its workers will not be required to rely on the day-off allowance. CEO Louis Camilleri was reported quoting on Saturday that Ferrari’s decision to close its factories is aimed at protecting its workers against the health hazards. The move, he said, will ensure peace of mind not only for the employees but also for their families.

Ferrari also accentuated on Saturday that operational activities at its Scuderia Ferrari Formula One team have also been suspended.

At the time of writing, Ferrari is exchanging hands at €123.0 per share in the stock market that translated to under 20% loss in 2020 so far.

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