Exclusive Marques Feeling the Economic Crisis

Now that it is official that the economy is now in recession, the auto market across the globe is now in turmoil, especially in the US. The Big 3 (GM, Ford & Chrysler) have yet to close the deal for its financial bailout, and it seems that the situation is very dire for the Americans manufacturers. Ford, for instance, recently sold off its stake in Jaguar and Land Rover to Tata, and even the controversial sale of Aston Martin which was thought the only profitable arm under Ford at that time.

However, news has arrived of layoffs at Aston Martin, which shows that despite the popularity of the DB9, the British marque is also suffering from drops in sales. AM have announced that they will be cutting off 600 jobs to save costs and will be working closely with the unions to reduce the workforce.

Even Bentley, who hit record sales in 2006, are also experiencing issues and have already cut their production figures by 15% in response to the drop in sales. Bentley are working closely with their dealers through these difficult times but we can expect more layoffs from the brand as well.

Only time will tell how the automakers will continue to respond to the recession but cost cuts seem to be the only way forward. The most evident of this would certainly be the absence of several major brands in the Detroit Motor Show this year. We can only hope that these big brands will pull through this crisis.

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