RE: Bentley Bags £3m Government Grant
Monday 31st October 2011
Bentley has bagged a £3 million grant from the Government's Regional Growth Fund (RGF), a move that will allow the luxury car maker to develop a new powertrain application to help push new export markets.
"This is a real boost for Bentley which has one of the most highly skilled automotive workforces in the country and, uniquely, has now been awarded two RGF grants," says Bentley Chairman and chief executive, Wolfgang Durheimer. "It shows that the Government recognises the importance of Bentley and the contribution we make to high value manufacturing and UK exports."
Bentley Bags £3m Government Grant
Three million quid helps secure 200 jobs at Bentley
The RGF's cash injection will also help to safeguard over 200 jobs and create a small number of additional positions within the Company's 900-strong engineering department - a welcome spot of cheery news in an otherwise gloomy outlook for the UK's manufacturing sector.
This is the second time this year Bentley has been successful with the RGF, having received £1.68m in the first round to create additional manufacturing jobs and training.
Of course, one of the reasons that the government is chucking moderately large amounts of cash into Bentley is that it's actually doing quite well at the moment. Perversely, US and European markets are up by a third despite a jittery world economy, and new markets such as China are still skyrocketing - as of the end of September, Bentley sales in China exceeded 1000 units for the first time as the country cements its position as the second biggest global market for Bentley. Age of Austerity? Ha...
Discussion
Why is our wonderful government throwing cash at VAG? What about helping all the SMEs that actually help to generate wealth for the country? Don't get me wrong - I'm happy that this helps keep jobs in the UK and maybe even results in a few more, but given the last paragraph of this report relating to sales being up why would VAG take those jobs away anyway - they're needed to support their increasing sales!
Strange world we live in (don't believe everything you read, etc)
Strange world we live in (don't believe everything you read, etc)
stworld said:
Why is our wonderful government throwing cash at VAG? What about helping all the SMEs that actually help to generate wealth for the country? Don't get me wrong - I'm happy that this helps keep jobs in the UK and maybe even results in a few more, but given the last paragraph of this report relating to sales being up why would VAG take those jobs away anyway - they're needed to support their increasing sales!
Strange world we live in (don't believe everything you read, etc)
I just clicked to type exactly the same thing!Strange world we live in (don't believe everything you read, etc)
Maybe at last we have a government that recognises the importance of manufacturing to the UK economy - not just in the jobs at Bently, but also the tier suppliers that support businesses like them. It's all too easy in this global village we all inhabit to uplift and relocate to a 'low cost' location or to somewhere the local government is 'more accomodating' in its support. Afterall the Chinese did it pretty successfully with MG Rover and LDV. Compared to the billions poured into the banks, this is chicken feed and, unlike the banks, might actually do some good for the real economy. Don't get me wrong, I mourn the passing of the UK automotive industry into foreign hands, but I would rather support VAG provided they in turn support UK PLC, than have another 'chinese takeaway' on our hands as happend when the previous governmment was in charge.
Phil Jay said:
Maybe at last we have a government that recognises the importance of manufacturing to the UK economy - not just in the jobs at Bently, but also the tier suppliers that support businesses like them. It's all too easy in this global village we all inhabit to uplift and relocate to a 'low cost' location or to somewhere the local government is 'more accomodating' in its support. Afterall the Chinese did it pretty successfully with MG Rover and LDV. Compared to the billions poured into the banks, this is chicken feed and, unlike the banks, might actually do some good for the real economy. Don't get me wrong, I mourn the passing of the UK automotive industry into foreign hands, but I would rather support VAG provided they in turn support UK PLC, than have another 'chinese takeaway' on our hands as happend when the previous governmment was in charge.
They don't the LCR content in a Bently is very high, Hungary, Poland etc I've just been given a grant through the RGF, admittedly it was for £3k not £3million but it all helps small businesses. One of the biggest issues that the development agency had was finding companies to apply for the grant.
There is money available for SME's in all sectors, there are a couple of other grants that I am looking at, you just need to talk to business link and development agencies etc.
There is money available for SME's in all sectors, there are a couple of other grants that I am looking at, you just need to talk to business link and development agencies etc.
Phil Jay said:
Maybe at last we have a government that recognises the importance of manufacturing to the UK economy - not just in the jobs at Bently, but also the tier suppliers that support businesses like them. It's all too easy in this global village we all inhabit to uplift and relocate to a 'low cost' location or to somewhere the local government is 'more accomodating' in its support. Afterall the Chinese did it pretty successfully with MG Rover and LDV. Compared to the billions poured into the banks, this is chicken feed and, unlike the banks, might actually do some good for the real economy. Don't get me wrong, I mourn the passing of the UK automotive industry into foreign hands, but I would rather support VAG provided they in turn support UK PLC, than have another 'chinese takeaway' on our hands as happend when the previous governmment was in charge.
I see where you are coming from, but laudable though this seems, it doesn't alter the fact that a business the size of VAG should have no problem raising £3m to invest in a successful arm of their company should they wish - after-all they are apparently doing well! Meanwhile Bombardier has lost out on a big contract to... Siemens, another German company! (I'm not suggesting a pattern here - two examples does not a make a valid group from which to draw conclusions...) Perhaps the Government is hoping that if we show support to German companies (and Germany on a larger scale), they will in turn be more willing to support the European economy in helping bail it out, which potentially would be better for us all in the medium to long term?I feel this money could have been better spent supporting home-grown industries.
Doesn't make a lot of sense. £3 million won't develop a trim clip in the modern world, let alone a drive train. I'm sure VAG were either going to go ahead or not, irrespective of the RDF payment. So, ultimately, it's 3 mill straight into profit, which is very nice but surely not what the fund was intended for!
The Queen is one of the largest private shareholder of VW AG I understand.
Good news that Bentley is doing well but we must start with UK owned and run companies first. Although we are the 6th largest maunfacturing country in the world 60% of those companies here are non-UKK owned. That leaves us exposed to the companies leaving, loss of profit and IP.
Good news that Bentley is doing well but we must start with UK owned and run companies first. Although we are the 6th largest maunfacturing country in the world 60% of those companies here are non-UKK owned. That leaves us exposed to the companies leaving, loss of profit and IP.
cliddell said:
So, how come Bentley qualify for this and Lotus didn't? Oh, probably more MPs own Bentleys......
But seriously, it seems wrong, to me: Lotus, it seems to me, have more scope for expanding their business, because they have their R&D services as well as the basic car business.
Chris
I think you will find Lotus have qualified - But seriously, it seems wrong, to me: Lotus, it seems to me, have more scope for expanding their business, because they have their R&D services as well as the basic car business.
Chris
http://www.edp24.co.uk/news/politics/group_lotus_s...
They missed out on the first round but were successful with a reduced bid - £10m this time. They have issued a statement confirming all new model production will remain in the UK and up to 1100 new jobs could be created, plus another 800 in their supply chain. Excellent news.
stworld said:
Why is our wonderful government throwing cash at VAG? What about helping all the SMEs that actually help to generate wealth for the country? Don't get me wrong - I'm happy that this helps keep jobs in the UK and maybe even results in a few more, but given the last paragraph of this report relating to sales being up why would VAG take those jobs away anyway - they're needed to support their increasing sales!
Strange world we live in (don't believe everything you read, etc)
The intention of RGFs is not necessarily to go straight to struggling companies but to go to companies where it can be seen to give the best return on investment. For example, with Bentley they know that the money will help towards local jobs, education of young people (apprenticeships in engineering etc) and provide contract work to local businesses.Strange world we live in (don't believe everything you read, etc)
RDFs are being more specifically targetted at where the best 'good' can come, rather than the previous idea of throwing enough money and hopefully some of it will come good.
Gassing Station | Motoring News | Top of Page | What's New | My Stuff