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Bentley SUV given green light by VW board

The "will they, won't they" saga over Bentley's SUV plans appears to finally be over. They will. That's according to the German business newspaper Handelsblatt, which is reporting that the controversial SUV will be built after receiving the go-ahead from Volkswagen's board.
Known internally as "Falcon," the still-unnamed Bentley SUV will be based on the EXP 9 Concept that received wildly mixed reviews at its 2012 Geneva Motor Show unveiling. Since the EXP 9's unveiling, there have been a steady stream of leaks and rumors suggesting that the bold-faced vehicle will get a redesign prior to going into production, but it remains unclear how different the final vehicle will look.
According to Automotive News, Bentley is itself stopping short of confirming the green-light report, though it does admit that the SUV's production outlook appears "very positive." Production will likely take place in Slovakia at a plant owned by parent Volkswagen.

Bentley Bentayga may spawn sportier fastback version

In the past few years, Bentley has shown us two different conceptions about what its future might look like in: the SUV that started life as the EXP 9 F concept and has now entered production as the Bentayga, and the EXP 10 Speed 6 concept that previews a future sports coupe from the stoic British marque. The next step is an SUV that combines a little of each of them. According to Automotive News, engineers and designers in Crewe are currently laying the groundwork for a crossover that would blend the tall form of the Bentayga with the roofline of the Speed 6. The result would be similar in form, we'd imagine, to the likes of the BMW X6 and Mercedes GLE Coupe, only even further upscale. We wouldn't be surprised to see more changes than the roofline and tail section, either, with a sportier front end and more avant-garde headlights (like those we saw on the Speed 6 concept) giving it a sportier, less stodgy appearance all around – and maybe, just maybe, a different nameplate. CEO Wolfgang Durheimer wants to get the fastbacked Bentayga variant ready by 2018 or 2019 – right around the time that Rolls-Royce, Aston Martin, Maserati, and Lamborghini will be rolling out their debut crossovers. By that time, Bentley will have already have had the Bentayga on the market for two or three years, and wants to be ready to fight off the onslaught with something fresh. "Imagine the EXP 10 as an SUV. It doesn't look 'old Bentley, Durheimer told AN. "The Bentayga doesn't stop us from dreaming and looking down the road. The more success we have with it, the more we can take the best of it and run with it." Proceeding with the project will require Durheimer to get approval from the Volkswagen Group head office in Wolfsburg, but the business case seems like a slam dunk. The model would help Bentley (and VW) further capitalize on the $1 billion it already spent developing the Bentayga, following a successful business model laid out by rival BMW and which Germany's other automakers are quickly learning to emulate. This wouldn't be the first time he'd be seeking approval from Matthias Muller on such a project, either. Durheimer successfully ushered the Cayenne into production when he was head of R&D at Porsche and Muller was the brand's CEO.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.