Ferrari to cut jobs and idle plants due to lower engine orders from Maserati

Ferrari 458 Italia

Workers at Maranello, Italy walked for four hours on Tuesday because Ferrari SpA is looking to idle production and eliminate 9 percent of its work force after sister brand Maserati reduced orders for engines. Ferrari wants to cut 120 office positions and 150 factory jobs in exchange for the last payment of a 2009 bonus due last month, said CGIL union official Giordano Fiorani.

Ferrari, which employs about 3,000 people, plans to idle a factory in Maranello by laying off about 600 workers for a week starting May 17. The supercar brand, Fiat’s most profitable brand, is scaling back due to fewer engine orders from Maserati, for which Ferrari produces engines.

Fiorani said that Ferrari is cutting 2010 production targets to 11,000 units from 20,000. Ferrari spokesman Stefano Lai said that Ferrari never planned to make 20,000 cars this year and will maintain production at about 6,000 vehicles.

He said that the company will outsource some jobs to local companies and will offer some employees early retirement.

– By: Kap Shah

Source: Bloomberg