autoevolution
 

Ferrari to Reduce Work Force by 9% and Idle Production

Ferrari is planning to eliminate 9 percent of its work force after Maserati reduced orders for engines. The Maranello-based sportscar maker, which employs about 3,000 people, is also seeking to idle production.

Workers walked out for four hours on Tuesday because Ferrari wants to cut 120 office positions and 150 factory jobs in exchange for the last payment of a 2009 bonus due last month, union official Giordano Fiorani said in a telephone interview for Bloomberg, quoted by the Automotive News.

Ferrari has proposed to pay the bonuses if we accept the job cuts. We are ready to discuss layoffs and reorganization, as there is a real cut in production, but we don't understand their rigidity,” Fiorani said.

Ferrari, Fiat’s most profitable brand, plans to idle a factory in Maranello by laying off about 600 workers for a week starting May 17, Fiorani added. According to Ferrari spokesman Stefano Lai, the company wants to take these measures because it has received fewer orders from sister brand Maserati, to which Ferrari supplies engines. Ferrari built 4,500 engines for Maserati last year, down from almost 9,000 in 2008. Lai declined to say how many Maserati engines will be made this year.

Even though Ferrari's margins are very high, they wanted to do better. The recovery is moving very slowly,” said Massimo Vecchio, an automotive analyst at Mediobanca S.p.A. in Milan. Ferrari is slashing 2010 production targets to 11,000 vehicles from 20,000, CGIL union's Fiorani said. But Lai said Ferrari never planned to make 20,000 cars this year and would maintain production at about 6,000 vehicles, similar to last year's output. The company intends to outsource some jobs to local companies and offer some employees early retirement, Lai added.

Ferrari's first-quarter trading profit declined 28 percent to 39 million euros ($50 million), the company said on April 21. Sales of the new 458 Italia, which is priced at 197,000 euros, provided a limited contribution in the period, it added. Ferrari sold 6,294 cars last year.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories