Contrary to its previous announcement, Ferrari has decided not to go ahead with the resumption of production at its plant at Maranello and Modena in Italy. The Italian sports car manufacturer has extended the suspension of its manufacturing activity until 3 May 2020, in accordance with today’s Italian Government announcement.
In a press statement, Ferrari has said that all activities that can be managed by smart working will continue regularly as in the past weeks. The company will continue to paydays of absence for all of those unable to adopt this solution, as it has done since the closure of its premises on 14 March.
This week the company began with the introduction of “Back on Track” – the project which at the reopening of the Maranello and Modena workplaces will guarantee adoption of advanced practices for the protection of employees’ health.
At the time of its previous announcement, Ferrari had stated that the company anticipates that it will be in a position to provide further financial guidance to the investment community during its first-quarter earnings’ call on 4 May, 2020. Reassuring its stakeholders, Ferrari says it is confident that in view of its brand equity, strong balance sheet and sound business model it will continue to create value beyond the near term uncertainties.
Meanwhile, in India today, the government extended the lockdown till 3 May. However, during his address to the nation, PM Modi also mentioned that some zones may be allowed to resume normal functioning after 20 April. However, it is expected that production will resume to limited capacity.
The Department for Promotion of Industry and Internal Trade (DPIIT) recently released a list industries that need to resume. Exporters’ body FIEO on Monday urged the home ministry to implement suggestions made by the DPIIT to resume limited activity in certain identified industries with reasonable safeguards, including automobiles.
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