220 jobs axed at Bentley factory

Luxury car maker Bentley is shedding another 220 jobs and cutting workers' salaries by 10% at its plant in Cheshire.

A spokeswoman for Bentley, which has suffered dramatic falls in sales, said the firm hoped to make job cuts through voluntary redundancies, but would not rule out compulsory action if necessary.

The announcement comes after the company, owned by Volkswagen, cut 230 jobs at the end of last year through voluntary severance.

The car maker employs 3,800 workers at its site in Crewe. From April 1, salaries for the remaining workers will be reduced by 10% until December 31. Chief Executive Dr Franz-Josef Paefgen will also be hit by the cut.

The spokeswoman said redundancies would be across the board and would affect all departments, adding: "We will be reopening the voluntary redundancy scheme. We can't rule out the fact that if there is a shortfall, there may have to be compulsory redundancies but we're hopeful that won't be the case."

"Bentley, along with other motoring manufacturers, has been hit by the global economic slowdown. With the situation likely to remain like it is throughout 2009 we thought it sensible to reduce our outgoings and head count."

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