FRANKFURT — Bentley, the luxury carmaker owned by Volkswagen, has booked five Antonov cargo jets to assistance get over potential offer bottlenecks in the celebration of a disorderly exit of Britain from the European Union, the carmaker mentioned on Wednesday.
Car companies are securing supplemental offer routes as policymakers in Brussels and Westminster request to strike a offer to determine the upcoming buying and selling romance with continental Europe soon after Britain exits the European Union.
Bentley, which can make superior end sports activities cars, buys 90% of its factors from continental Europe, and sells close to 24% of its cars into Europe, Chief Govt Adrian Hallmark explained to the Financial Times’ Potential of the Car summit.
“We have used two several years setting up. We have five Antonovs that we have on reserve to fly bodies to Manchester,” Hallmark mentioned, adding that in addition to shifting car bodies by air, Bentley has hiked the level of spare areas stored for creation.
“We utilized to run just-in-time with two times inventory. Now we have fourteen times inventory. That is fourteen operating times, so that is a few months of inventory,” he mentioned.
The business has booked supplemental warehouses and planned new logistics routes in scenario classic offer procedures are hampered by bottlenecks.
If Britain fails to secure a negotiated trade arrangement with European policymakers, Bentley would be able to soak up 10% import tariffs by raising costs and cutting costs. This would be much less damaging than offer disruptions.
“It is not existential as lengthy as almost everything flows. Halting flows is considerably far more unsafe than Brexit tariffs,” Hallmark mentioned, referring to offer bottlenecks.
This year Bentley expects to promote far more than 10,000 luxury cars and to arrive at breakeven, primarily many thanks to a rebound in demand from customers in China, Hallmark mentioned.
China profits are up 35% when as opposed with in advance of the COVID-19 crisis. Product sales in Europe and the United States up fifteen% Hallmark mentioned.
“All round we are in a situation in which we will do nicely about 10,000 profits this year,” he mentioned by way of Webcast. “We are on the cusp of heading over and above breakeven.”