Shares in Ferrari NV tumbled the most in more than two weeks after the luxury sports carmaker confirmed it will recall thousands of supercars due to problems with their braking system.
“Vehicles involved in this recall campaign are equipped with a brake reservoir fluid cap that may not vent properly, thereby potentially creating vacuum inside the brake fluid reservoir,” Maranello, Italy-based Ferrari said in a statement.
The recall involves some of the carmaker’s 458 and 488 vehicles.
While Ferrari didn’t provide details on the total number of cars involved globally, it’s recalling 2,222 vehicles in China alone, warning owners of possible problems with brakes.
A China recall of that magnitude would amount to nearly every vehicle Ferrari sold in the country from 2018 through March of this year, according to Bloomberg Intelligence data.
Ferrari said that it identified the problem working along with supplier Robert Bosch GmbH.
Shares in the company fell as much as 3.3% on the news on Friday, bringing declines for the year to 13%. Friday’s drop also makes Ferrari the day’s worst performer on the Stoxx 600 Automobiles & Parts Index.
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, which 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 May 30.
While the development is negative news for Ferrari, any impact will likely be short-term only, Bestinver Securities analyst Andrea Trovarelli wrote in a note.
“We remind readers that in FY21, Ferrari shipped around 3,700 vehicles in APAC, that is around 33% of total shipments.”
Ferrari’s China division will replace the brake fluid reservoir cap free of charge for vehicles within the scope of the recall, according to Friday’s notice.