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Bentley spreads its wings, hires jets to fly car bodies to Britain under Brexit

FRANKFURT — Bentley, the luxury carmaker owned by Volkswagen, has booked five Antonov cargo jets to help overcome potential supply bottlenecks in the event of a disorderly exit of Britain from the European Union, the carmaker said on Wednesday. Car manufacturers are securing additional supply routes as policymakers in Brussels and Westminster seek to strike a deal to determine the future trading relationship with continental Europe after Britain exits the European Union. Bentley, which makes high end sports cars, buys 90% of its components from continental Europe, and sells around 24% of its cars into Europe, Chief Executive Adrian Hallmark told the Financial Times' Future of the Car summit. "We have spent two years planning. We have five Antonovs that we have on reserve to fly bodies to Manchester," Hallmark said, adding that in addition to shifting car bodies by air, Bentley has hiked the level of spare parts stored for production. "We used to run just-in-time with two days stock. Now we have 14 days stock. That's 14 working days, so that's three weeks of stock," he said. The company has booked additional warehouses and planned new logistics routes in case traditional supply methods are hampered by bottlenecks. If Britain fails to secure a negotiated trade agreement with European policymakers, Bentley would be able to absorb 10% import tariffs by raising prices and cutting costs. This would be less damaging than supply disruptions. "It is not existential as long as everything flows. Stopping flows is far more dangerous than Brexit tariffs," Hallmark said, referring to supply bottlenecks. This year Bentley expects to sell more than 10,000 luxury cars and to reach breakeven, mainly thanks to a rebound in demand in China, Hallmark said. China sales are up 35% when compared with before the COVID-19 crisis. Sales in Europe and the United States up 15% Hallmark said. "Overall we are in a position where we will do well over 10,000 sales this year," he said via Webcast. "We are on the cusp of going beyond breakeven."

Average Bugatti owner has 84 cars, 3 jets, 1 yacht

Between Audi, Porsche, Lamborghini, Bentley and Bugatti, the Volkswagen Group has no lack of prestige marques under its umbrella. And while some of these marques may produce models that compete against each other, each seems to be profitable enough in its own right to justify its existence. But what about Bentley and Bugatti? Surely these marques cater to the same customers, right?
Not according to their shared CEO. "The clientele between Bentley and Bugatti is remarkably different," said Wolfgang Dürheimer in an interview with Bloomberg. "The Bentley customer on average owns 8 cars. The average Bugatti customer has about 84 cars, 3 jets and 1 yacht."
That may be a slight exaggeration (we'd have expected three yachts and one jet), but it puts things into perspective: Bentleys are for the one percent. Bugattis are for the one percent of that one percent. Which only goes to show why it's taken Bugatti over eight years to sell 450 Veyrons - a number of units it would take Bentley about two weeks to move, albeit at about one tenth the price.

Bentley already considering smaller crossover

Bentley has yet to reveal (let alone start selling) its upcoming new SUV, but the company is already reported to be considering a smaller model to follow in that new model's footsteps. This according to Autocar, in speaking with Bentley CEO Wolfgang Durheimer at the announcement of the company's record sales results for 2014. Prior to originally taking the helm at Bentley and Bugatti, Durheimer served as head of R&D at Porsche, which recently launched the Macan crossover to join the larger Cayenne. Tipped to be called the Bentayga, the forthcoming Bentley crossover will share its platform with the next generation of its sister company's crossover, whose success Bentley aims to emulate. The Bentayga (or whatever it's ultimately called) will be vital in helping Bentley achieve its sales target of 20,000 units per year by 2020. The storied British marque topped 11,000 units for the first time in 2014, and the new SUV will be a vital component in boosting those figures. Bentley says it has already received 4,000 "expressions of interest" for the crossover before it's even unveiled, suggesting that it could exceed earlier sales projections of 3,000 units per year. But even then, the big crossover wouldn't be enough to get Bentley to its target. That's why it's already considering the smaller crossover, among other options including a four-door coupe, a two-door sports car and a Mulsanne-based convertible. The company is also investing heavily in infrastructure and production capacity to ensure its supply can meet the demand it is working to build up.