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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

Bentley marks 95th anniversary with special Mulsanne

The top end of the new car market seldom seems to need much justification for rolling out a new special edition - other than bringing in a few extra bucks and making its customers feel extra special in the process. Bentley, for its part, is celebrating its 95th anniversary this year, and to mark the occasion has released a special edition of its top-of-the-line Mulsanne saloon.
Called the Mulsanne 95, the limited-edition limo gets three very British color options, dark-tint finish for the Flying B hood ornament and special 21-inch wheels. Step inside and you'll find two-tone blue and white leather with red top-stitching, with a 95 motif embroidered into the seats and special illuminated treadplates, all offset by special Fulbeck Walnut panels that come from a single, giant walnut tree some 300 to 400 years old that came down in a storm in Lincolnshire in 2007.
Buyers will be able to choose between Britania Blue, Empire Red or Oxford White, but only 15 examples will be made available, and all exclusively in Bentley's home UK market.

Bentley spreads its wings, hires jets to fly car bodies to Britain under Brexit

FRANKFURT — Bentley, the luxury carmaker owned by Volkswagen, has booked five Antonov cargo jets to help overcome potential supply bottlenecks in the event of a disorderly exit of Britain from the European Union, the carmaker said on Wednesday. Car manufacturers are securing additional supply routes as policymakers in Brussels and Westminster seek to strike a deal to determine the future trading relationship with continental Europe after Britain exits the European Union. Bentley, which makes high end sports cars, buys 90% of its components from continental Europe, and sells around 24% of its cars into Europe, Chief Executive Adrian Hallmark told 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 said, adding that in addition to shifting car bodies by air, Bentley has hiked the level of spare parts stored for production. "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 said. The company has booked additional warehouses and planned new logistics routes in case traditional supply methods are hampered by bottlenecks. If Britain fails to secure a negotiated trade agreement with European policymakers, Bentley would be able to absorb 10% import tariffs by raising prices and cutting costs. This would be less damaging than supply disruptions. "It is not existential as long as everything flows. Stopping flows is far more dangerous than Brexit tariffs," Hallmark said, referring to supply bottlenecks. This year Bentley expects to sell more than 10,000 luxury cars and to reach breakeven, mainly thanks to a rebound in demand in China, Hallmark said. China sales are up 35% when compared with before the COVID-19 crisis. Sales in Europe and the United States up 15% Hallmark said. "Overall we are in a position where we will do well over 10,000 sales this year," he said via Webcast. "We are on the cusp of going beyond breakeven."