Actions Ferrari are falling on the Milan Stock Exchange after the news leaked by the foreign media on car pickup in China luxury sports cars for safety concerns. The stock dropped 3,06% to 197,90 euros against a 1,73% drop in the Ftse Mib index. In detail, the Maranello company has issued a recall for 2.222 of its luxury sports cars in China, telling owners that there could be some problem with the brakes. According to data from Bloomberg Intelligence, that's nearly all of the cars Ferrari sold in the country from 2018 through March 2022.
The notice was posted this morning, Friday, April 22, on the website of the State Market Regulatory Administration. The imported vehicles of the series 458 Italia, 458 Special, 458 Special A, 458Spider, 488 GTB e Spider 488 – produced between 2 March 2010 and 12 March 2019 – will be recalled from 30 May due to security issues.
“Vehicles covered by this recall have the potential to increase the risk of brake fluid leaks, leading to reduced braking performance or brake failure,” the notice reads. It also advises users to drive the vehicle with caution and, should the low brake fluid warning light come on, stop immediately and call a tow truck.
According to a US local media report last year detailing a similar Ferrari recall in the US, the 458 and 488 models have a Robert Bosch-manufactured brake system that can malfunction “due to an oil leak from the master cylinder or brake booster assembly”.
For cars in China, Ferrari International Trading (Shanghai) will replace the brake fluid reservoir cap free of charge for vehicles under the recall, according to the notice.
Ferrari did not immediately comment on the news
Andrea Trovarelli, an analyst at Bestinver Securities, said on Bloomberg that the recall was bad news for Ferrari, but noted any impact would be short-term. “We remind readers that in FY21, Ferrari shipped approximately 3.700 vehicles in APAC, or approximately 33% of total shipments,” Trovarelli wrote. Furthermore, it should be noted that for Bestinver Securities the red from Maranello remains with a hold rating and a target price between 200 and 220 euros, even if the stock has lost almost 7% in the last three months, despite the positive start to the season Charles Leclerc. Therefore, this Sunday's appointment is eagerly awaited.
