Bentley Gt on 2040-cars

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Autoblog Podcast #343

George Kennedy from Boldride.com, BMW i3, NACTOY long list, Bentley SUV
Episode #343 of the Autoblog podcast is here, and this week, Dan Roth and Steven Ewing are joined by George Kennedy, Autoblog alum and Editor-in-Chief of Boldride.com. Topics include the unveiling of the BMW i3, the 2014 North American Car and Truck of the Year long list, and the green-lighted Bentley SUV. As always, we start with what's in the garage, but then answer some of your questions before diving into the week's news. For those of you who hung with us live on our UStream channel, thanks for taking the time. You can follow along after the jump with our Q&A. Thanks for listening!
Autoblog Podcast #343:

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Bentley CEO Adrian Hallmark explains carmaker's situation and plan for recovery

In August, we posted on some of the issues plaguing Bentley at the moment, namely the large loss the carmaker's posted this year. The same Autocar piece we referenced, carmaker CEO Adrian Hallmark said Bentley would not be making more sports cars. Bentley wrote to us to clarify that a single year's loss isn't a calamity, that "it is a mistake to suggest that sports cars are the same as GTs," and that the brand "will continue to design, engineer, and craft" GT cars. We must note, though, that at the time, Hallmark himself said, "The sports car sector – like our own...." More recently, Hallmark expounded on some of the factors slowing the company down this year, from delayed launches to exchange rates. Through the first nine months of the year, Bentley sold 6,654 units, an 11 percent decline from the 7,498 units sold through the first nine months of 2017. In addition to other matters like huge investments in new technologies, that helped the Crewe carmaker to a $44.7-million year-over-year drop in revenue, and a $156-million overall loss, compared to a $35 million profit over the same period last year. On top of declining sales overall, the nine-month delay in launching the Continental GT, the brand's second-best seller, was the first of two big issues causing red finances. Hallmark said the Continental GT "just wasn't ready for launch. But we'd paid for it – we'd paid all the money out, but not got any money back in." Having got that sorted, the second issue arose: WLTP certification. Unlike the New European Driving Cycle (NEDC) before it, the Worldwide harmonized Light vehicles Test Procedure requires every model variant get tested for certification. Hallmark told Automotive News Europe, "We were not quick enough unfortunately to book capacity or prioritize our derivatives within some of the group processes to get them certified on time." Bentley wasn't alone in this; Volkswagen had only managed to get seven of its 14 models approved by September 1 when the WLTP rules took effect. Bentley's much smaller scale exacerbated the problem, turning the situation "close to catastrophic." Hallmark said the snafu robbed the Bentayga of 300 to 400 sales - a gigantic number with respect to a $200,000 vehicle - and pushed the Bentayga plug-in hybrid launch back to March 2019 so Bentley could get volume models certified. Furthermore, preparing for Brexit hasn't been easy on any of the UK's manufacturers.