The weakening economy has taken its toll on common automakers such as General Motors and Toyota – with sales down double-digits this year – but even the world’s premier automakers are feeling the crunch. Volkswagen ’s Bentley brand had a record year in 2007, but the tough economic times are ensuring 2008 won’t be a repeat performance.
Bentley has already made production cuts this year, with another round likely due to falling sales. After selling 10,014 vehicles in 2007, sales are down about 20 percent this year, with 2008 sales expected to total just 8,000 units.
“We have to reduce production further, given the ongoing lack of consumer confidence,” Bentley ’s Michael Hawes told the Financial Times. “Clearly, the decline in demand is continuing and getting more severe.”
Bentley has already cut back its production in 2008, asking one-third of its workforce to work a three-day week. Further cuts are expect in the coming months as the automaker implements a plan to further reduce production by 15 percent.
Although the slumping economy is getting most of the finger pointing from Bentley, there has also been a movement away from vehicles that are viewed as less-than environmentally friendly. With most Bentley models averaging 11-12 mpg, the luxury automaker could definitely be suffering from this phenomenon.
Bentley expects the downward trend to continue on into 2009, but is hopeful that things will turn around by 2010.
