Bentley cutting production on the back of falling sales

[Bartek S.]

Coming off record sales of 10,014 vehicles last year, Bentley has been forced to reduce production and ask more than a third of staff at its Crewe factory in the UK to work just a three-day week. Some 1,400 employees of Bentley’s 4,000 strong staff will work the reduced shift in an effort to cut production by around 15%, with blame being centered on falling sales.

The reduction in sales, which had occurred mostly in the U.S., has been attributed to a variety of factors, including higher petrol prices and carbon taxes. Interestingly, brand image may also play a factor in Bentley’s fall in sales - people are becoming more and more reluctant to be seen in exorbitant and environmentally apathetic cars such as those built by Bentley.
The production cut will affect slower-selling models such as the Arnage and Azure, and staff will stay on full pay until production is stepped up again under a “time banking” agreement, reports the Financial Times. Bentley is expecting the situation to remain challenging for the rest of this year and into the start of next year.
Bentley is by no means the only luxury manufacturer to have suffered sluggish sales this year, with across-the-board declines in growth affecting much of the premium segment.
Last year Bentley posted a new operating profit record of €155m based on sales of €1.37 billion. However, even with the production cuts the carmaker’s output this year is still impressive considering that just five years ago it was only selling around 1,000 vehicles per year.
motorauthority

 

[Merc1]

Bentley was growing too big too fast anyway. There was no way they could sustain that forever. The Bentley dealer here has Bentleys lined up outside like E-Classes. Time to become a little more exclusive again IMO.

M

 

[Osnabrueck]

The dip in sales may be due in part to oversaturation and "fashion factor" - just ask anybody in West LA how many Bentleys they've seen during their morning commute.

But really - it doesn't take a keen observer to see that the US housing debacle has culled the pool of potential Bentley owners down to a rather modest size. I'm sure some nervous execs would love to lay the blame at the feet of gas prices and carbon taxes - but the truth is much harder to swallow: The high-range luxury market has had excess capacity for an extraordinarily long time and Bentley's "downmarket heavy" lineup puts them in harm's way.

I expect ultra-high end sales to be impacted less, but I'd even expect sales of the Drophead and Brooklands to feel some of the pinch in the near future.

 

[Centurion]

The Bentley CGT and Flying spur is a typical upper middle class production. They are purchased by people moving up in the ranks but although these people are high earners they are by no means rich. All their wealth is tied into their apartment/house or speculative stocks they've invested in, unlike the Phantom clientèle who are sitting on a substantial amount of money. Since most of their wealth is tied into property, stocks or even their car they are the people that suffer most during a credit crunch or recession.

 

[SDNR]

Hassan, although what you have said is true for many Bentley FS/ Rolls-Royce Phantom buyers ....I think the reality is much more complex than that -- the buyers of both these cars (but particularly the Bentley FS) are a much more diverse group of people than these analogies would suggest.

Sure, the Bentley FS is in a cheaper price range than the Phantom, but that alone is not a clear indication of who precisely is buying these cars. Obviously, the Bentley's market is much broader because it is cheaper -- but there are also many people who chose a Flying Spur (or a Mercedes S class ...or any number of other vehicles)

I guess what I'm trying to say is just because the Phantom is a popular symbol of wealth and power ...doesn't necessarily make it the genuine first choice of the truly wealthy and powerful.

 

[Merc1]

All I know is that I want a Brooklands, don't care who buys it.

M

 

[SDNR]

LOL -- Marcus, if I was Warren Buffet, I would have granted your wish months ago

 

[Merc1]

Thanks Rob.




This is the one of those cars you buy for life. I'd never sell or trade it. After the initial "getting acquainted" driving is over I'd only drive it at the most special times. The saying "if you buy right, you'll only buy once" applies here. In short, something of this quality lasts forever.

M

 

[PanterroR]

In short, something of this quality lasts forever.

Damn right!

 

[Tarek]

LOL -- Marcus, if I was Warren Buffet, I would have granted your wish months ago

Can i wish for a car too?

 

[Osnabrueck]

The saying "if you buy right, you'll only buy once" applies here. In short, something of this quality lasts forever.

Check in 7 years from now and see what a Bentley Brooklands is going for in the duPont registry. Bentley residual values fall like bricks.

You'd be amazed by how little an Arnage Red Label goes for after 5 years.

 

[Merc1]

Oh I'm know, but if I had a car like a Brooklands I wouldn't care one bit about resale. I'd be keeping it until it is no more.

M

 

[SDNR]

You never know Marcus, the new model might be to your liking .......you just never know