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.
10/30, 1:59 PM
posted by:
howsmydriving
Gosh, the factory must be quiet with fewer aproned workers hammering out body parts on wooden forms with a mallet.
10/30, 2:11 PM
posted by:
johnnycanuck
Pardon me, sir, but do you have any Heinz ketchup?
10/30, 2:13 PM
posted by:
darx_ider
It’s not the economy, wealthy people don’t care about money when they buy high end luxury cars, It is Bentley’s ugly look, Bentley needs to remodel its high end brands like the Arange and Azure. Aston Martin had no problem selling out all the new ” One 77 ” because it’s beautiful car.
10/30, 2:39 PM
posted by:
yarddog82abn
No more Big Pimping???
10/30, 3:13 PM
posted by:
rds130
darx_ider,
I read elsewhere Aston hadn’t sold all of its One-77s. Either way, it’s not the most beautiful Aston ever designed. Anyways, this is far more likely due to the move away from less-than environmentally friendly vehicles than it is the economy. AIG CEOs still have their golden parachutes….
10/30, 3:57 PM
posted by:
Lariat Luxury Locomotive Liner No.3
When times go downscale smart people with wealth do not want to advertise they have it.
10/30, 4:41 PM
posted by:
A4
they slowed down because they didnt have any big new models this year like they did last… no Flying Spur, no GTC, same old Arnage… last year was a big year for their new models, now that everyone that wants one has one its slowing a bit.
10/30, 10:47 PM
posted by:
FlyingB
darx_ider is incorrect on every point. Saying that our clientele do not care about money when buying an automobile is asinine. Certainly there are rare exceptions. But the vast majority of our customers do care. Many have lost hundreds of thousands of dollars in the stock market alone. Others run businesses, and when the value of the business drops, these board chairs or CEOs might find themselves “looking for other opportunities.” Yes, they might still have a lot of money, but right now, they have other concerns on their minds. And while middle-income car buyers might not be buying new cars because they are trying to cut expenses, the upper-income car buyers are not buying as many cars, boats, or aircraft because they are preoccupied with keeping their company–or whatever the source of their income–from falling apart.
Neither the Arnage nor the Azure need a “remodel.” The retirement of the current Arnage is being celebrated with the Final Series. The future of the Azure is less certain, but simply giving it some new sheetmetal is not at the top of anyone’s list.
Finally, darx_ider, I’m sorry if you don’t like don’t like the look of our cars. Nevertheless, I do wish you all the best, and the hope that either your computer or another compassionate person will be kind enough to read this to you, as I have no way to respond using Braille.
10/31, 1:20 AM
posted by:
acura_el2000
^LOL who do you think you are? CEO of Bently? “our clientele” give me a break man..
10/31, 10:08 AM
posted by:
FlyingB
No, I don’t think I’m the CEO of Bently. And I’m not the CEO of Bentley, either. I never claimed to be. Is it so far-fetched to believe that some of the people who read blogs for car enthusiasts also work for automakers? No one screens us out, and I say “us” because I’d be very surprised if there aren’t members here who happen to work for GM, Ford, Daimler, BMW, Fiat, etc. I know there are others here who work for other VW Group automakers.
I’m sorry if you work for a company that doesn’t give every single employee the dignity, respect, and sense of ownership to say “our clientele.” From the greenest new hire to the CEO. That’s one thing that I believe makes a Bentley so special, like them or not: everyone in the company can say that people who purchase Bentleys are “his/her clientele.” It’s what drives someone to be passionate in their work and strive for excellence.
You can read what I post and take it or leave it; you can believe what you want about who I am. It doesn’t matter to me. As I said before, no one to my knowledge is screened here. Neither people who work for automakers, nor the young and naive.
10/31, 10:32 AM
posted by:
VladdyTrout
Rolls Royce/Bentley faced severe problems at the end of the 1970s and again at the end of the 1980s. They had to cut back production, layoffs, etc. but they bounced back. During that period Royce and Bentley were the same independent company so it was much more difficult to ride out the recessions. Things are different with Bentley owned by VW and Rolls Royce by BMW.
The financial crisis will pass and the rich will be back to buying Bentleys and Royces the same way we regular folks buy candybars and potato chips.
P.S. No matter what happens Royce and Bentley should not go “green.” Please no electric or solar powered Phantoms or Flying Spurs. I’m sure I am not alone in thinking that the point of a Royce or Bentley is excess. Pure unadulterated, disgusting, gluttenous excess. Those cars need to tell the world “I care not about the problems of the world! Bah!!”
10/31, 5:06 PM
posted by:
VWgrouP
Its to bad that Bentley has to make these significant cuts. Bentley are beautiful cars inside and out. Boy..If I had the money…