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| Jan 23, 2009 | |
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Bentley to freeze production
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| British luxury carmaker Bentley announces production freeze | |
| LONDON - BRITISH luxury carmaker Bentley said on Friday it would suspend production for up to seven weeks because of falling demand, the latest auto firm to announce cuts because of the credit crunch.
Bentley's cars retail for up to 250,000 pounds (S$512,000) and are owned by Queen Elizabeth II and many Premiership footballers, highlighting the slump's impact on the top end of the market. 'There's a global downturn in the automotive market,' company spokesman Mike Hawes told AFP. 'The market continues to be in decline globally so we have decided to stop production for six or seven weeks'. Bentley, which is owned by German carmaker Volkswagen, employs 3,600 staff at its plant in Crewe, northwest England, which has seen a series of restrictions on production since last October. Workers will still be paid during the shutdown, which will run from March to May, allowing current orders to be built first. Carmakers including Jaguar and Nissan have announced major job cuts in Britain in recent weeks, while Honda is closing its factory in Swindon, western England, for four months. The British government has been considering a possible bailout for Jaguar, which is owned by Tata Motors of India. New car sales in Britain dropped more than 20 per cent in December and industry body the Society of Motor Manufacturers has predicted that 2009 will be a 'difficult year' with production 'significantly reduced'. Bentley spokesman Hawes said that its biggest market, the United States, had seen a significant softening of demand but added they were 'hopeful' the firm could be boosted by rising demand in China and the Middle East. -- AFP Read also: | |
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