Bentley losses soar to £282.3m in ‘most challenging year’

LUXURY car maker Bentley Motors saw losses more than double last year to £282.3m as sales slumped during the global recession, the company said today.

The Crewe-based firm, which is owned by German auto giant Volkswagen, said 2009 had been “one of the most challenging years for Bentley Motors and the global car industry.”

As sales in its two biggest markets, the UK and US slumped, total group revenues slid to £469.5m from £829.4m in 2008. Despite the gloom, sales levels in China and the Middle East were maintained.

To encourage more sales in these two key territories Bentley this year released bespoke versions of existing models for both Chinese and Arabian customers.

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In a statement accompanying its accounts for 2009, Bentley Motors said it had not benefited from the scrappage schemes introduced by many governments, including the UK and Germany, to boost depressed demand in the automotive sector.

The statement said: “As the recession took hold, demand fell and production volumes plummeted as manufacturers struggled to reduce stock. Bentley was no different but quick action in 2008 and 2009 ensured that our stock levels were managed successfully thereby protecting residual values, dealer viability and the long term future of the brand.”

Chairman and chief executive Dr Franz-Josef Paefgen said action on costs, the support of parent company VW and investment in new models would help Bentley’s fortunes improve.

He said: “The challenge of 2009 was to manage reduced production volumes – and the damaging effect that had on our workforce, our supplier base and our overall business operations.

“With the help of our parent company, which has visibly demonstrated its long term commitment, we have managed to reduce our overheads significantly whilst safeguarding investments in new products and new technologies.

“We know our customers are loyal to the brand and will return, excited by new products such as the all-new Mulsanne, a car at the pinnacle of modern British motoring.

“However, we are also excited by the potential of our new ‘extreme’ Bentleys, the Continental Supersports coupe and convertible, whose performance will let us attract new customers to the famous brand and help us return to profitability.”

The accounts reveal that Bentley’s workforce – which was trimmed in 2008 – fell further during 2009 from 3,681 to 3,424.

Earlier this month Bentley unveiled the successor to its popular two-door Continental range.

It is in the midst of recalling more than 800 cars made betweem October 2006 and March 2009 over fears that its famous “Winged B” hood ornament could injure people in an accident, because it might not properly retract.

The models affected are the Arnage, Brooklands and Azure models, 620 of which were sold in North America and 200 in Europe.