Ferrari, The Last Auto Manufacturing Holdout In Italy, Halts Production

Ferrari, The Last Auto Manufacturing Holdout In Italy, Halts Production

Italy is on lockdown as COVID-19 spreads, and as of yesterday, all automotive manufacturing had stopped in the country except Ferrari. According to a statement by the company, that has changed and Ferrari will suspend production until March 27.

The company will continue to pay its employees and will not require them to use their day off allowance.

Volkswagen Group’s Lamborghini plant has stopped production until March 25, and Fiat Chrysler’s four plants halted production this past Wednesday.

The plant is scheduled to be closed for two weeks, but it isn’t clear when production could restart. The Italian government has asked people to work from home when possible, with industrial production continuing as long as companies follow strict safety and hygiene measures. Ferrari stated that they had implemented the measures, but are “now experiencing the first serious supply chain issues, which no longer allow for continued production”.

Supplier Brembo announced that it would close its Italian plants temporarily beginning next week, and tire maker Pirelli has cut production at its plant near Turin after a worker tested positive for coronavirus.

Car sales in the country have also slowed to a trickle. In Italy, there must be an urgent situation, a “situazioni di necessità” in order for someone to leave their home. To meet this level of necessity for a car purchase, according to lawyers, someone’s car would need to be destroyed or stolen.

Many Italian dealers are closed for sales, although some vehicle service centres have remained open.