Ferrari Suspends Production for Two Weeks Amid Coronavirus Threat

Ferrari NV temporarily halted all production of its iconic sports cars in Italy due of the spread of the coronavirus, as per people familiar with the matter.

The Italian supercar maker will suspend its production at the Maranello and Modena plants until March 27, the people stated, asking not to be identified on the grounds that the decision isn’t public. The company will continue paying its 4,000 staffs in Italy, the people said. Ferrari’s decision follows a similar move by Volkswagen AG’s Lamborghini, which suspended production in Italy until March 25.

Italy has become the epicenter of the deadly coronavirus outbreak outside of China, with in excess of 15,000 affirmed cases and a death toll of more than 1,200. The government has put the whole nation on virtual lockdown as it attempts to contain the spread.

A month ago Ferrari boosted its 2020 forecasts for sales and earnings after the supercarmaker posted record deliveries, a sign that Chief Executive Officer Louis Camilleri’s model-range renewal is proving to be fruitful. The organization produced in excess of 10,000 cars for the first time last year.

Source(s) Bloomberg