U.S.-Iran war blocks Strait of Hormuz, suspends delivery of Ferrari and other supercars temporarily

*This content was translated by AI.

Italian supercar maker Ferrari has abruptly stopped delivering vehicles to the region due to escalating military conflicts in the Middle East and subsequent paralysis of its logistics network. Ferrari has decided to temporarily close all sea transport routes delivering vehicles to customers as the geopolitical crisis near the Red Sea intensifies, according to a Bloomberg News report on the 19th.

Currently, major ports and transport routes in the Middle East are not operating normally due to increased fighting, and Ferrari has taken preemptive measures to ensure the safety of its business operations. With most standard logistics routes blocked, Ferrari is using high-cost air transport for only a small fraction of emergency supplies, but delays in deliveries for the majority of booked customers have become inevitable.

The situation suggests that the impact on the overall luxury car industry is becoming more practical beyond simple logistical disruptions. Along with Ferrari, other ultra-high-priced brands such as Bentley are also bearing the brunt of the logistics turmoil, while major manufacturers, including Volkswagen Group, are also shelving shipments to the Middle East or considering detour routes. The Middle East accounts for a relatively small portion of global sales, but it is a key market with extremely high profitability per unit due to consumption centered on full-option vehicles.

Financial markets also reacted immediately. Shortly after the news of the suspension of India was announced, Ferrari's stock price plunged 4.6% during the day on the Milan stock market, and the overall decline this year reached 11%. Experts predict that sales gaps in high-value markets will be a significant variable to Ferrari's annual financial goals if the dispute drags on. The increase in logistics costs and insurance premiums due to the conversion of air transport is also likely to put a burden on the profit structure.

However, Ferrari currently has a strong order backlog worth several years around the world, so it will be able to defend against a direct hit to its production lines by diverting supplies to the Middle East to other regions. Nevertheless, as global supply chain instability around the Red Sea continues, external risk management in the premium automotive sector has become more important than ever.

Ferrari said in an official statement that it was monitoring the local situation in real time and that it would decide when to reopen India based on the developments. The industry believes that the move will serve as an opportunity to reshape luxury brands' Middle East market strategy and that the geopolitical crisis will be a critical turning point in testing the robustness of the global luxury market.

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*This content was translated by AI.