Rolls-Royce and Bentley have cut production and will be working to a three-day week after a sharp dip in sales.
Rolls-Royce and Bentley have cut production and will be following a three-day week after a sharp dip in sales.
The luxury car brands, currently controlled by Volkswagen, have seen sales in America fall by almost 60 per cent since the terrorist attacks in the country on September 11. The shorter working week will begin at the end of October and the Christmas shutdown will be extended.
Officials at Rolls-Royce and Bentley said this was a “prudent step” to tailor manufacturing to demand. It affects 800 workers at the company’s Crewe plant in Cheshire.
VW usually sells about 1 500 Bentleys and 400 Rolls-Royce models in a normal year.
Ford’s luxury carmaker Jaguar has already announced that it will extend its shutdowns at two plants this month to avoid overstocking. It is believed the company may be considering additional cuts if demand continues to fall. Fiat and Ford have also announced cuts in production.
Meanwhile, DaimlerChrysler AG has announced that it will close three plants, two of which are in Canada, in an effort to return its troubled Freightliner truck division to profitable ways by 2003.
A plant in Portland, Oregon, that builds parts, will be closed next year.
The closures will result in 2 700 job losses, but the company said it should save them R76 billion annually by 2004.
“This multifaceted restructuring programme shows that we have acted quickly and decisively to bring Freightliner back on the road to recovery and profitability,” said Eckhard Cordes, a DaimlerChrysler management board member responsible for commercial vehicles.
The company said it would also streamline existing model lines in the division. In addition, it would make cuts to salaries and benefits, but no details were given.
The problems at the truck section will affect DaimlerChrysler’s earnings this quarter. The manufacturer is already busy with a R36 billion overhaul of the Chrysler unit.
