Ferrari halts deliveries to Middle East due to war in the region
Kyiv • UNN
Ferrari has temporarily suspended deliveries to the Middle East due to geopolitical risks. The automaker's shares in Milan fell by 4.6% following the announcement.
Italian luxury sports car manufacturer Ferrari announced on Thursday that it has temporarily suspended deliveries to the Middle East due to the war in the region, UNN reports with reference to Reuters.
Details
"We are closely monitoring developments in the Middle East and the potential implications for our business," the company said in a statement.
"At this stage, we have temporarily suspended deliveries in this region, while making only a few deliveries by air," the company added.
As Bloomberg notes, Ferrari shares continued to fall, dropping 4.6% in Milan. This year, the decline was about 12%.
The move, Bloomberg writes, highlights how geopolitical risks are beginning to affect the logistics of luxury car manufacturers, even as Ferrari's low production volumes and multi-year order book help mitigate potential disruptions. Companies such as Porsche AG and Mercedes-Benz Group AG have already been affected by declining demand for luxury cars in China.
Bentley CEO Frank-Steffen Walliser said this week that the company had not adjusted production volumes despite the escalating conflict, although demand in the region had weakened. Like Ferrari, the Volkswagen AG subsidiary has stopped supplying cars to the Middle East.
"At this point, we are not experiencing any impact on production," Walliser said during a year-end conference call. "But, certainly, people in the Middle East now have other plans than looking for a new Bentley."
The region is a key market for premium goods manufacturers, whose shares have fallen since the war began on February 28. According to UBS analysts, investor sentiment towards European luxury company stocks reached its most pessimistic level in years this week due to the conflict in the region.
Mansory, a German firm that tunes high-end models from brands such as Rolls-Royce and Ferrari, said it had not implemented a complete halt to deliveries to the Middle East. Instead, a company representative said, it evaluates deliveries on a case-by-case basis, as air freight costs are approximately three to four times higher than normal levels, and sea freight options remain limited.
Ferrari has historically benefited from flexibility in managing deliveries due to its large order book, which allowed the manufacturer to adjust allocation and redirect deliveries between regions as needed.
According to the company's annual report, the Middle East accounted for about 4.6% of the company's global deliveries in 2025, making it a relatively small share of the total.