Please ensure Javascript is enabled for purposes of website accessibility

Ferrari, Facing Parts Shortages, Shuts Down Production in Italy

By John Rosevear - Mar 16, 2020 at 10:37AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Ferrari's factories are closed until at least March 27.

Ferrari (RACE 2.43%) said that it has closed its two factories in Italy, facing an emerging parts shortage amid a virus outbreak that has hit Italy especially hard.

Ferrari's primary factory, at its headquarters in Maranello, and its body factory in Modena, will both be shut down immediately until at least March 27, the company said. 

As recently as last week, Ferrari had expected to be able to continue to produce vehicles, albeit at a lower pace than usual, after instituting measures recommended by Italian health authorities. 

The floor of Ferrari's engine factory in Maranello, Italy.

Ferrari is suspending production at its Italian factories until March 27 because of parts shortages. Image source: Ferrari.

But due to parts shortages it is experiencing, Ferrari has not choice but to suspend production for the time being, it said in a statement. Brake manufacturer Brembo, a longtime Ferrari supplier, said on Friday that it will suspend manufacturing at its four Italian factories starting today. Ferrari's Formula 1 racing team, Scuderia Ferrari, has also suspended operations for the time being, the company said. The first Formula 1 race of the season, scheduled for this past weekend in Australia, was cancelled. 

Ferrari said that its non-manufacturing activity, such as product design and engineering, will continue to operate with employees working from home. All of Ferrari's employees, including factory workers, will continue to receive full pay during the shutdown. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ferrari N.V. Stock Quote
Ferrari N.V.
$187.94 (2.43%) $4.46

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.