Ninety percent of the parts are imported by the British carmaker from the European Union. Due to Brexit and possible complications at the borders, he does not want to stop production.
The British luxury car manufacturer Bentley, which belongs to the Volkswagen concern, has reserved five Antonov cargo planes. It wants to ensure the continuity of supply in the event that obstacles to the exchange of goods between London and the European Union arise in connection with Brexit. This was stated by the head of the company Adrian Hallmark at a digital conference dedicated to the future of the automotive industry, organized by the Financial Times.
Britain and the European Union have days to conclude an agreement on future relations, if such a document is to be approved by parliaments on both sides by the end of the year. If this is not achieved, tariffs and quotas will complicate trade across the English Channel from January. There is also a risk of goods being kept at borders, so car manufacturers are securing additional supply routes.
Bentley, which makes expensive sports cars, buys 90 percent of its components on the European mainland. It will sell less than a quarter of its cars in Europe, Hallmark said. “We spent two years planning. We reserved five Antons for the air transport of bodies to Manchester,He divorced. He added that Bentley also increased parts stocks. He did not specify what type of Antonov aircraft and from which carrier he booked them. Model An-124 their large operator Volga Dnepr Airlines recently grounded, but they are still in operation at Antonov Airlines.
“Previously, in just-in-time mode, we had enough stock for two days. We now have stock for 14 days and 14 working days, respectively, so in fact for three weeks,“Bentley said. In the supply chain in the automotive industry, it is usually not produced in stock, but in the “just in time” mode, ie continuously at a specified time according to customer requirements.
However, the carmaker booked more warehouses and planned new logistics routes in case the usual deliveries were hampered by the onslaught at the border.
If Britain did not negotiate a free trade agreement with Brussels, Bentley would manage the 10 percent duty by raising prices and reducing costs. The duty would not have as negative an impact as a supply disruption, Hallmark said.
Bentley expects to exceed 10,000 cars sold this year, mainly due to a recovery in demand in China. Sales in China are 35 percent higher than before the coronavirus crisis. Sales in Europe and the United States rose 15 percent, said the head of the British carmaker.
ČTK
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