Some light at the end of the tunnel today, with Ferrari's announcement that it intends to reopen its shuttered Maranello and Modena facilities on April 14th. The plan remains subject to the continuity of the marque's supply chain, with major partners like Pirelli and Brembo having also been severely affected by the Coronavirus outbreak. Nonetheless, Ferrari says it is highly confident that everything will be ready in time for production to resume after Easter.
It's not like the firm has been sitting on its hands over the past few weeks, though. Its team has been keeping itself busy assisting Bologna-based Siare Engineering to source components for ventilator production and, as part of the Exor Group, has been aiding in the purchase and distribution of ventilators, respiratory equipment and medical masks for Italian hospitals.
Crucially, Ferrari also committed to paying all staff unable to work during the shutdown, a situation which will continue beyond the reopening of the factory itself. Employees that can work remotely will continue to do so, as has been the case in recent weeks, with those unable to either contribute from home or make it to the factory still receiving their full salaries.
For everyone else, there should be plenty to crack on with when they get back underway. With another set of excellent financial results under its belt, and 12-18 month's worth of existing orders to get through, Ferrari says it will do everything in its power to make up for the production shortfalls caused by the virus. What's more the brand says that it has yet to witness "any inordinate or abnormal cancellations", despite the economic uncertainty currently being felt around the world.
Good thing then that unlike many manufacturers - which run their lines at full pelt - Ferrari's plant already operates with a great deal of leeway built in. This means that steps such as additional weekday shifts or working on Saturdays should still enable it to meet its 2020 production target by the end of the year. Though that does, of course, remain dependent on the potential for and severity of any resurgence of Covid-19 once the summer draws to a close.
Regardless, Ferrari said in a statement that it will continue to take "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." It anticipates that it will be in a position to clarify exactly what financial impact the shutdown has had on its business in time for its first quarter earnings call on May 4th, but suggests 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." Hopefully that's a line we'll hear many more businesses repeat in the coming days and weeks.
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