As the global automotive sector struggles to emerge from the financial downfall caused by COVID-19 pandemic, Italian sports car maker Ferrari has reportedly managed to bestow next to no negative impact on its overall vehicle demand.
According to Antonio Picca Piccon, Chief Financial Officer, Ferrari NV, the company’s order books have remained strong despite struggling through the outbreak and facing a seven-week shutdown on its Italian plants, which might account for the lost production of 2,000 vehicles. Ferrari’s deliveries in the first quarter in fact observed growth of nearly 5%.
However, the Italian car manufacturer’s decision to minimize its 2020 earnings guidance shows that even the most iconic car companies are sensing the pressure. However, Ferrari hopes to bounce-back by the second half of 2020.
Reportedly, employees might have to shorten their summer holidays and work on Saturdays to enable Ferrari to fulfill its half of the lost volume. Besides, the carmaker has even restarted its Modena and Maranello facilities and intends to become fully operational by May 8.
Premier Giuseppe Conte led Italian government is also making a small stride towards gradually reopening the economy after coming out of a two-month-long lockdown to combat the COVID-19 pandemic. For the record, Italy was the European epicenter for coronavirus and had a death toll of about 29,000 with over 210,000 confirmed cases.
As a result of COVID-19, Ferrari has seen various purchase cancellations, mainly in Australia and the U.S., but Ferrari’s Chief Executive Officer, Louis Camilleri assures that this isn’t something to be alarmed about.
In fact, after its recent market value surge, Ferrari has managed to get its worth over prominent automotive giants Ford and General Motors. Ferrari’s shares scaled up by almost 7% after it reported remarkable earnings, despite being in lockdown. The automaker’s overall cars shipments shot up by 5% to 2,738 while revenue fell by only 1% to $1.02 billion.
Source Credit: https://www.bloomberg.com/news/articles/2020-05-04/ferrari-lowers-guidance-for-2020-after-lengthy-lockdown