Bentley pulls on production handbrake

VOLKSWAGEN’S British luxury car marque, Bentley, has made a second round of staff cuts and reduced the pay of remaining workers.

The latest cut was announced after Bentley sales in the UK slumped in January from 312 cars to 53 units, down 60 per cent.

The Crewe factory has just started a seven-week shutdown in what will be the UK industry’s second longest plant closure. Honda has shut its Swindon operation for four months.

Bentley’s parent company, Volkswagen, has retained its long-term sales goals, despite the downturn.

VW’s group head of sales and marketing, Detlef Wittig, said in a media release about January sales: “Our long-term growth targets remain valid despite the difficult overall conditions.”

VW’s sales fell 21.3 per cent to 382,000 cars in January, with European sales plunging 29.8 per cent to 184,000 cars and trucks.

Left: Arnage in production.

Mr Wittig said sales of small cars were up in Germany, where the Government had introduced a scrapping incentive for small cars.

“Consumer acceptance of the environmental bonus has significantly boosted demand, in particular for small and compact cars such as the Fox, Polo, Golf, Seat Ibiza and Skoda Fabia,” he said. “Delivery figures for these vehicles are all higher than last year.”

Bentley has been the fastest growing luxury brand in recent years thanks to the success of its Continental GT, but a widening of the range in recent years not been enough to maintain production volumes.

The famous UK-based producer has announced plans to cut 220 people from its workforce and to cut the pay of the remaining people.

These cuts have come only months after 230 people were let go in the last three months of 2008. That number rose to almost 300 after 60 contract workers were not renewed at the same time. The reductions were made through voluntary redundancies wherever possible.

The latest cuts will reduce the Bentley workforce to around 3600 people at its Crewe production base and headquarters.

The pay of all employees, right up to chairman Franz-Josef Paefgen, will be reduced by 10 per cent from April to the end of the calendar year.

Bentley produced a record number of 10,014 cars in 2007, but this slumped to 7604 cars in 2008 in the wake of the global financial crisis.

UK registration figures show Bentley sales in its domestic market fell 26.6 per cent in 2008 from 2100 to 1541 cars. In Australia, sales went from 127 to 95 units in 2008.

VW was aiming to become the world’s largest car-maker by 2018. It lies third behind Toyota and General Motors.

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