This archive report was first published on 8 June 2020.
On 5th June 2020, Bentley Motors Limited, a British manufacturer and marketer of luxury cars and SUVs, and a subsidiary of the Volkswagen Group, announced plans to implement 1,000 job cuts through a voluntary redundancy scheme.
The move comes as the car industry continues to face a sharp decline in sales due to the COVID-19 pandemic, with the Society of Motor Manufacturers & Traders (SMMT) reporting that only 20,000 new cars were registered in the UK last month – down 89% year-on-year – the worst May performance since 1952.
According to a statement from Bentley, steps had already been taken to cut or delay unnecessary spending without impacting future product plans, including stopping recruitment, releasing contractors, freezing pay, and placing up to 66% of colleagues at peak on furlough.
Despite these measures, the company resumed production at its headquarters in Crewe on 11th May 2020, albeit at half capacity.
Notably, Bentley's sales grew by 5% to end 2019 at 11,006 units, resulting in a profit of $73 million.
