Even the rich are poor - Porsche forced to cut production

30 January 2009

You'd might expect people who can afford a Porsche on any given day of the week, to still have the cash to afford one in a recession. Seemingly not, because sales have dropped by 27 per cent over the past six months. The filthy rich are now only lightly soiled and it's forcing Porsche to cut around 19 production days over the next three months.

Of course the Germans aren't the only manufacturers affected by the economy's ill health. Just about now, around 2,500 workers will be walking out of Honda's plant in Swindon, and not returning for the next four months. The BBC reports they'll receive their full basic pay for the first two months, then just 60 per cent for the final two.

It's not quite as rosy as a long holiday in which there'll be no excuse not to re-decorate the dining room, though. While staff will be paid during the four month closure, they'll have to work unpaid overtime to pay off their wages received. "Sorry, we're can't let you work, but then we're going to make you pay for not working". Umm, hello McFly?

[BBC]

TOPICS:   Economy   Motoring

11 comments

  • Sean
    "The BBC reports they’ll receive their full basic pay for the first two months, then just 60 per cent for the final two." Sounds like a good tactic to reduce statutory redundancy payments in a few months (as statutory redundancy is based on the last 12 weeks average pay).
  • Jamie
    If i am not mistaken these days Porsche are more of a hedge fund with a car factory attached so i doubt a relatively minor drop in production will concern them, or indeed get in the way of their eventual takeover of VW.
  • rowly
    sean, thats wrong mate, statutory amounts are limited anyway so if they earn over about 350 a week its irrelevant, its also based on basic contractual salary OR average whichever is higher. so either way they would get about 350 for every year worked over 2 years stat, unless something else is in their contract
  • Paul
    If the Govt offered a £2k voucher to buy a British car, to every household in UK all their problems would be over and they'd save millions on redundancy pay and claw most of it back in car sales tax.
  • United E.
    i wonder if fraud mandelson has shares in jaguar . . his mate fat prescott sure luvs em
  • The B.
    Paul, surely that depends on what you mean by a British car, one made in Britain or one owned by a British company, if it's the latter I'll have an Atom, ta.
  • Cam12
    Yes, Porsche are indeed a hedge fund with a car factory attached. Again this is piss poor reporting based on a BW fad to report economic problems at the moment. What the hell do the writers of BW acutally do for a living... ? lol. Remember, more often than not, if you read something in the media that you acutally know a lot about, you'll find the article is just full of shite. Which leads you to think that most things written are just shite too! Journalists are journalists because they can't do anything else, such as business or science!
  • Steve 1.
    My company has done a similar deal with the flexible working agreement , that the 4 day week now inforced for a month can be paid back later in the year in extra hours worked , however a normal full weeks wage will be paid in cash .Strange how most of the people who pushed for the flexible working system now are the ones complaining about it , they do not seem to realise that it is saving possible redundancies (40 ) in the case of my i work . And the coments they come out with about foreign workers i can understand however my company has been advertising for english speaking e.t.c. and due to lack of response through agency and elsewhere they have employed Polish and many other hard working foreign employees who get on with working and do not cause half the problems british people can dream up .
  • erm
    Sorry are you stupid...? Honda doing this is effectively saving these jobs, would you have taken the positive slant had they made all of these people redundant?
  • numberwang
    www.google.com
  • Denis C.
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