The manufacturer of luxury cars Bentley removes 1000 jobs

Le constructeur de voitures de luxe Bentley supprime 1000 emplois

Le constructeur de voitures de luxe Bentley supprime 1000 emplois

Bentley is headquartered in Crewe in the north west of England, explains that the pandemic has brutally done to “derail” its development projects.

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June 5, 2020 8: 25

Updated at 9h48

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The manufacturer of luxury cars Bentley removes 1000 jobs

Agence France-Presse

LONDON — The british manufacturer of luxury cars Bentley announced Friday the removal of 1000 jobs, or a quarter of its workforce, due to the decrease of activity caused by the pandemic.

The brand, which employs 4200 people in the United Kingdom and belongs to the German group Volkswagen, says in a press release, have proposed a voluntary departure, without excluding laying off more employees.

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 1500.

The british manufacturer of racing cars McLaren has decided to reduce its workforce of 1200 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 being a result of operating in the green of € 300 million (457 million dollars) 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.

“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 (a $170,000).

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