Ferrari to idle production and lay off work force

Ferrari S.p.A. has embarked upon a cost cutting drive in a bid to hold on to profits. With this in mind, the company has announced will halt production and lay off 9 percent of its work force. The move comes in the wake of its sister brand Maserati having slashed its orders for engines.

The Ferrari brand rakes in the highest profit within Ferrari S.p.A. and has firmed up plans to hold production at it Maranello factory for a week starting from the 17th of May, a move that will affect 600 workers. An automotive analyst at Mediobanca S.p.A. in Milan, Massimo Vecchio said, “Even though Ferrari’s margins are very high, they wanted to do better. The recovery is moving very slowly.”

This also has prompted Ferrari to reduce its production target for 2010 to 11,000 vehicles from the earlier 20,000 that it had targeted. So, all those who thought the famed manufacturer of sports cars has passed through the worst phase, this should come as a surprise.