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Coronavirus outbreak leads Ferrari and Lamborghini to shut down factories in Italy

Mar 16, 2020, 20:21 IST

Italy is struggling with the largest COVID-19 coronavirus outbreak outside China, but until recently, both Ferrari and Lamborghini had kept their factories operating.

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Lamborghini idled its plant in Sant'Agata Bolognese last week, and Ferrari followed suit at facilities in Maranello and Modena over the weekend.

"My gratitude goes first and foremost to Ferrari's women and men who, with their tremendous commitment over the past few days, have demonstrated the passion and dedication that defines our marque," Ferrari CEO Louis Camilleri said in a statement.

"Together with our suppliers, they have ensured the Company's production. And it is out of our respect for them, for their peace of mind and those of their families that we have decided on this course of action. Our clients and fans are also top of mind for us at this time, as we prepare for a strong restart."

Ferrari shares have declined 18% over the past month. The supercar maker was spun off from Fiat Chrysler Automobiles in a 2015 IPO.

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Lamborghini is part of the VW Group, based in Germany.

In a statement, Lamborghini CEO Stefano Domenicali said, "This measure is an act of social responsibility and high sensibility towards our people, in the extraordinary situation in which we find ourselves right now in Italy and which is also evolving abroad due to the worldwide spread of Coronavirus."

He added, "As we have done up until now, we continue to monitor the situation in order to react rapidly and with the right flexibility, in collaboration with our people and in order to restart with energy in the right moment."

Italy has almost completely shutdown the country after the coronavirus struck the Lombardy region in the country's powerhouse industrial north. The outbreak has pushed the Italian medical system to the breaking point.

Maserati also announced a shutdown, part of a larger decision by parent Fiat Chrysler Automobiles (FCA).

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"The Group will make use of these stoppages to implement revisions to production and quality control protocols to benefit our customers and enhance overall productivity," FCA said in a statement.

"The Group is working with its supply base and business partners to be ready to enable our manufacturing operations to deliver previously planned total levels of production despite the suspension when market demand returns."

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