Ferrari Sees Demand for Its Supercars Holding Up Despite Virus

The economic shock emanating from the coronavirus pandemic has done little to dent demand for Ferraris, among the world’s most expensive automobiles, according to the maker of the 1.6 million-euro ($1.74 million) Monza supercar.

The order book remains “strong,” despite the outbreak and a seven-week shutdown of its Italian plants that could mean lost production of 2,000 vehicles, Ferrari NV Chief Financial Officer Antonio Picca Piccon said on a conference call Monday. Deliveries in the first quarter rose about 5%.

The carmaker’s decision to lower its earnings guidance for 2020 shows that even the world’s most iconic brands are feeling the pressure, but Ferrari predicted a bounce-back in the second half of the year.

“Evidence from the prior financial crisis suggests demand should remain robust,” Bloomberg Intelligence analyst Michael Dean said in a report. “However, the main risk is that production will again be shuttered if there’s a second wave of Covid-19 infections in Italy.”

The shares rebounded from a loss of as much as 6.3% in Milan to end Monday 1.5% higher.

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