The combination of Brexit and the reduced activity sudden caused by the epidemic of Covid-19 is deeply the suffering of the british car industry, without sparing his most valuable brands. As well, Bentley, which employs 4,200 people in the United Kingdom and belongs to the German group Volkswagen, has had to announce the reduction of nearly a quarter of its workforce.
“black Week for the british car”
This announcement is a new blow for the automobile industry in britain, where restructuring is increasing. Thursday, Aston Martin, another luxury brand, had announced 500 job cuts, and the chain of dealers Lookers 1 500. The british manufacturer of racing cars McLaren has decided to reduce its workforce by 1,200 people. “This is a black week for the british car, “which” is strong but not invincible, ” stresses Mike Hawes, director general of the industry association SMMT. “Measures to strengthen cash flow, boost demand and, above all, to maintain our competitiveness are essential “, he says to the address of the government. Mr. Hawes is also pressing the Uk to negotiate free trade agreements, such as with the EU in order not to aggravate the situation, whereas the automotive sector uk relies heavily on the export.
Bentley is headquartered in Crewe in the north west of England, explains that the pandemic has brutally done to “derail” its development projects. The brand had put in place a transformation plan in 2018 which is to improve its productivity, with the key, an operating result in the green of 300 million euros in 2019 and a record performance in the first quarter of 2020. But Bentley says to have had no other choice than to seek sources of savings due to a significant reduction of its forecast sales.
Turn power
“Losing colleagues is not something we take lightly, but it is a necessary measure to protect the vast majority of the jobs that remain,” stresses Adrian Hallmark, CEO of Bentley. “The Covid-19 was not the cause, but an accelerator” of the difficulties, he acknowledged, suggesting that the decision could be also related to the transformation plan in progress. Beyond its efforts to be more effective, the manufacturer also has to take a turn electric and will offer a hybrid version for its models by 2023. It then counts the launching of its first model, the 100 % electric in 2026. The brand was founded in 1919 in the north London and was taken over by Volkswagen in 1998. It sells approximately 11,000 vehicles per year, at an average price of around 200, 000 pounds.
