Bentley could halt production after ‘damaging’ no-deal Brexit
A no-deal Brexit could be “quite damaging” for Bentley’s annual profit, and may force it to close stop production for a few days, the company’s chief executive said today.
Adrian Hallmark said his firm is already stockpiling parts and switching some imports from the port of Dover to Immingham. The carmaker could consider more contingencies in December if no deal is reached, he added.
“Best case, it's an annoying impact on our annual profitability,” he told Reuters. “Worst case, it's quite damaging on our annual profitability so a full no-deal Brexit would hurt us as a company, it would limit ability to invest.”
“We may work for four days, or we may have a longer Christmas break and a longer Easter break if there is no deal so that we can smooth the period between now and the middle of next year,” he said.
The Volkswagen-owned brand sold around 6,700 cars in the first three quarters of the year, down almost a thousand year-on-year, but it is still on track to near its record 11,059 sales this year, Hallmark said.
Sales revenue slipped to €1.1bn, with an operating loss of €137m, impacted by delays on its new Continental GT model.
While facing Brexit uncertainty, the company is also trying to expand its range, and expects to launch the first fully electric Bentley before the middle of the next decade.
The UK car industry, which employs around 850,000 people, is worried it could be hit with 10 per cent import tariffs under World Trade Organization rules after Brexit.
Earlier this month, Japanese car maker Nissan, whose Sunderland plant is the largest in the country, warned that a no-deal Brexit would bring “serious implications” for Britain’s manufacturers.
Jaguar Land Rover has said Brexit could cost it £1.2bn a year, while Aston Martin is considering flying car components into the country if there are queues on motorways around Dover.