Bentley: S 2 S 2 on 2040-cars

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VW Group shareholders demand Bentley return to profit

The Volkswagen Group's main shareholders are giving British ultraluxury division Bentley an ultimatum to turn around its finances and start earning a profit. The Piech and Porsche families did not say what would happen if the brand fails to return to the black, but they said it should happen within two years. "The important thing is for every (VW Group) brand to generate a reasonable contribution again," Wolfgang Porsche told the subscription-only Frankfurter Allgemeine Zeitung, as relayed by Automotive News. "That is not currently the case at Bentley, and we are not satisfied." Volkswagen Group has not yet issued its report for full-year 2018, but Bentley had lost the equivalent of $157 million through the first nine months on an 11 percent decline in sales. In 2017, Bentley sold 10,566 vehicles globally, with revenue down 9.2 percent from 2016. VW Group apparently cites the slow rollout of the Continental GT and the British pound's lower value amid Brexit talks, which makes the many parts it sources from continental Europe more expensive, as among the reasons. A German study last summer claimed that Bentley lost a little more than $19,000 on each car. Adrian Hallmark started as CEO in February 2018 after heading global brand strategy for Jaguar. Bentley in 2018 released the all-new 2019 Continental GT after a nine-month delay, and it revealed the GTC convertible version in Los Angeles. Hallmark has said 2019 "is a conversion year to a better business model" after a year plagued by problems that also included European WLTP certification. He announced last year the luxury brand would no longer build new sports cars, though the brand says it's still committed to the idea of the two-door GT. Bentley has also said it wants electrified versions of all its models by 2025, which will be an expensive proposition and will likely including plug-in hybrid versions of current models.

Bentley will black out the Flying Spur's trim for $4,735

Just because a car brand is premium, and exclusive, and expensive does not mean it is immune to the most popular automotive trends. Like the Ram 1500, the Honda Pilot, and the Fiat 500L, the Bentley Flying Spur will now be offered in a specification with blacked-out parts.  Bentley introduced the third generation of the Flying Spur during summer 2019, and now that it's had some time to settle in, new options are starting to roll out. This exact package is called the Blackline. Not to be confused with Lexus Blackline models, or the Harley-Davidson FXS Blackline Softail.  Nearly all the brightwork on the exterior of the sport sedan has been darkened. This includes the Flying B hood ornament, the radiator vanes, the grilles, the side window surrounds, the lower door and rear door trim, the front and rear light bezels, the door handles, the wing vents, and the exhaust outlets.  The Flying Spur has black parts, but it is not completely blacked out. Buyers still have the option of picking between 17 standard colors and 13 "extended range" colors. The standard wheels on the Flying Spur Blackline are 21-inch (no, they're not all black) with the option for 22-inch Mulliner Driving Specification wheels. There is no mention of any changes to the interior. The Blackline package will be available on the Flying Spur soon for $4,735.          

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.