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Car producers are securing further provide routes as policymakers in Brussels and Westminster search to strike a deal to find out the longer term buying and selling relationship with continental Europe after Britain exits the European Union.
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Bentley, which makes excessive finish sports activities vehicles, buys 90% of its elements from continental Europe
Bentley, the posh carmaker owned by Volkswagen has booked 5 Antonov cargo jets to assist overcome potential provide bottlenecks within the occasion of a disorderly exit of Britain from the European Union, the carmaker mentioned on Wednesday. Car producers are securing further provide routes as policymakers in Brussels and Westminster search to strike a deal to find out the longer term buying and selling relationship with continental Europe after Britain exits the European Union.
Bentley, which makes excessive finish sports activities vehicles, buys 90% of its elements from continental Europe, and sells round 24% of its vehicles into Europe, Chief Executive Adrian Hallmark informed the Financial Times’ Future of the Car summit.
“We have spent two years planning. We have five Antonovs that we have on reserve to fly bodies to Manchester,” Hallmark mentioned, including that along with shifting automotive our bodies by air, Bentley has hiked the extent of spare components saved for manufacturing.
“We used to run just-in-time with two days stock. Now we have 14 days stock. That’s 14 working days, so that’s three weeks of stock,” he mentioned.
The firm has booked further warehouses and deliberate new logistics routes in case conventional provide strategies are hampered by bottlenecks.
If Britain fails to safe a negotiated commerce settlement with European policymakers, Bentley would be capable to take up 10% import tariffs by elevating costs and slicing prices. This can be much less damaging than provide disruptions.
“It is not existential as long as everything flows. Stopping flows is far more dangerous than Brexit tariffs,” Hallmark mentioned, referring to produce bottlenecks.
This yr Bentley expects to promote greater than 10,000 luxurious vehicles and to achieve breakeven, primarily due to a rebound in demand in China, Hallmark mentioned.
China gross sales are up 35% in comparison with earlier than the COVID-19 disaster. Sales in Europe and the United States up 15% Hallmark mentioned.
“Overall we are in a position where we will do well over 10,000 sales this year,” he mentioned by way of Webcast. “We are on the cusp of going beyond breakeven.”
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
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