Shares in the company fell as much as 3.3 per cent on the news on Friday, bringing declines for the year to 13 per cent. Friday’s drop also makes Ferrari the day’s worst performer on the Stoxx 600 Automobiles & Parts Index.

‘Reduced braking performance or brake failure’

A notice posted on the website of China’s State Administration for Market Regulation on Friday said the recall there covers the 458 Italia, 458 Speciale, 458 Speciale A, 458 Spider, 488 GTB and 488 Spider series cars made between March 2, 2010 and March 12, 2019.

“Vehicles covered by this recall may potentially increase the risk of brake fluid leakage, resulting in reduced braking performance or brake failure,” according to the website. It advised owners to drive with caution, and to stop immediately and arrange for towing if the car’s “low brake fluid level” warning light comes on. The recall starts on May 30.

Although the development is negative news for Ferrari, any impact will probably be short-term only, Bestinver Securities analyst Andrea Trovarelli wrote in a note. “We remind readers that in FY21 [financial year 2021], Ferrari shipped around 3700 vehicles in APAC [the Asia-Pacific], that is around 33 per cent of total shipments.”

Ferrari’s China division will replace the brake fluid reservoir cap free for vehicles within the scope of the recall, according to Friday’s notice.

Bloomberg



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