Latest news with #Walliser
Yahoo
16-06-2025
- Automotive
- Yahoo
Bentley CEO: Tariff uncertainty remains despite UK deal. Plus: A new gas-powered car.
Bentley (VWAGY) CEO Frank-Steffen Walliser finds himself in control of the luxury British brand at a remarkable time. He has been at the helm for about a year since his predecessor left for rival Aston Martin (AML.L). There's been a transition from gas to hybrid, with all-electric on the horizon. But the big issue facing the brand, a unit of Volkswagen, is trade with its most important region: the US. The UK negotiated a 10% tariff with the US, one deal that the government said meant duties were "immediately slashed." Reports suggest the EU is also looking to secure a 10% across-the-board tariff. However, the original tariffs President Trump announced on "Liberation Day" remain in place, with the UK government indicating a resolution could come soon. Walliser said that for that reason alone, the brand is still in limbo. "It's not finalized," Walliser said, adding that planning for the automotive sector is usually done in years, whereas now Bentley is working month to month. Meanwhile, Walliser said, Bentley will price-protect all cars purchased through the end of June, and all customer-ordered cars will continue to be shipped and delivered. Further inventory will remain in the UK, however, until the US-UK trade deal is finalized with what appears to be a 10% tariff. "We are also prepared to feed new cars back to the market in the moment where we have clarity on the tariff situation," he said. The tariff uncertainty arrives as the company is coming off a tough year. Revenue was down 10% to 2.65 billion euros ($3.06 billion), with its return on sales (a version of profit margin) down to 14.1% from 20.1% in 2023. Why the slump? Bentley is in the midst of electrifying its product range, so introducing new models and sunsetting older ones partly explains the sales drop. Nonetheless, the company said demand remains strong, with "healthy order intake" and positive reception of its new models. The brand is also having a moment in pop culture, with characters in hit shows "Yellowstone" and "Landman" driving Bentley models that are hard to miss. One of the cars that Walliser and Bentley are excited about is a new version of the Bentayga SUV, the company's top-selling car. The Bentayga Speed is the fastest, most powerful version of that SUV yet. Interestingly, it comes with a turbocharged V8 — and it's not a hybrid. "I would say it's one of the last cars with that type [of powertrain]. There's also an opportunity to create something very unique. This is definitely not a mainstream car," the Bentley CEO explained. Walliser indicated that customers were asking for a car with this type of pure, gas-powered motivation, but the future of the brand stands with hybrids and, eventually, all-electric propulsion. Bentley originally planned to go all-electric by 2030. But like many brands, its plans have changed for a variety of reasons, like cost and customer appetite. Walliser said Bentley's first pure EV will be revealed later in 2026 in an all-new form factor, likely a sportier or compact SUV. "It's our fourth model line, so we are adding something to the business and not replacing a car. So that gives a lot of opportunities," he said. "Also, it's a more compact car ... It will be a very modern interpretation of it, maybe one of the best Bentleys ever." For Bentley, hopefully it is. That's because Bentley owners seem more than happy with the current gas-powered models. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-06-2025
- Automotive
- Yahoo
Bentley CEO: Tariff uncertainty remains despite a UK deal. Plus: A new gas-powered car.
Bentley (VWAGY) CEO Frank-Steffen Walliser finds himself in control of the luxury British brand at a remarkable time. He has been at the helm for about a year since his predecessor left for rival Aston Martin (AML.L). There's been a transition from gas to hybrid, with all-electric on the horizon. But the big issue facing the brand, a unit of Volkswagen, is trade with its most important region: the US. The UK negotiated a 10% tariff with the US, one deal that the government said meant duties were "immediately slashed." Reports suggest the EU is also looking to secure a 10% across-the-board tariff. However, the original tariffs President Trump announced on "Liberation Day" remain in place, with the UK government indicating a resolution could come soon. Walliser said that for that reason alone, the brand is still in limbo. "It's not finalized," Walliser said, adding that planning for the automotive sector is usually done in years, whereas now Bentley is working month to month. Meanwhile, Walliser said, Bentley will price-protect all cars purchased through the end of June, and all customer-ordered cars will continue to be shipped and delivered. Further inventory will remain in the UK, however, until the US-UK trade deal is finalized with what appears to be a 10% tariff. "We are also prepared to feed new cars back to the market in the moment where we have clarity on the tariff situation," he said. The tariff uncertainty arrives as the company is coming off a tough year. Revenue was down 10% to 2.65 billion euros ($3.06 billion), with its return on sales (a version of profit margin) down to 14.1% from 20.1% in 2023. Why the slump? Bentley is in the midst of electrifying its product range, so introducing new models and sunsetting older ones partly explains the sales drop. Nonetheless, the company said demand remains strong, with "healthy order intake" and positive reception of its new models. The brand is also having a moment in pop culture, with characters in hit shows "Yellowstone" and "Landman" driving Bentley models that are hard to miss. One of the cars that Walliser and Bentley are excited about is a new version of the Bentayga SUV, the company's top-selling car. The Bentayga Speed is the fastest, most powerful version of that SUV yet. Interestingly, it comes with a turbocharged V8 — and it's not a hybrid. "I would say it's one of the last cars with that type [of powertrain]. There's also an opportunity to create something very unique. This is definitely not a mainstream car," the Bentley CEO explained. Walliser indicated that customers were asking for a car with this type of pure, gas-powered motivation, but the future of the brand stands with hybrids and, eventually, all-electric propulsion. Bentley originally planned to go all-electric by 2030. But like many brands, its plans have changed for a variety of reasons, like cost and customer appetite. Walliser said Bentley's first pure EV will be revealed later in 2026 in an all-new form factor, likely a sportier or compact SUV. "It's our fourth model line, so we are adding something to the business and not replacing a car. So that gives a lot of opportunities," he said. "Also, it's a more compact car ... It will be a very modern interpretation of it, maybe one of the best Bentleys ever." For Bentley, hopefully it is. That's because Bentley owners seem more than happy with the current gas-powered models. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
13-05-2025
- Automotive
- Yahoo
Bentley warns its car sales to US still frozen amid tariff cut confusion
The British luxury carmaker Bentley has said sales to the US remain frozen as customers wait for lower tariffs from the UK's trade deal – with no sign yet of when the rates will start. The UK last week agreed a 10% tariff on 100,000 car exports to the US as part of a limited trade deal with Donald Trump. That would be significantly below the 25% levy imposed by the US on the rest of the world, but neither government has yet detailed how the deal will work in practice. Frank-Steffen Walliser, Bentley's chief executive, said the wait for lower tariffs was 'super-harming the business at the moment – nobody is moving'. Manufacturers still have no idea when the lower tariffs will be implemented or how the 100,000 cars allowed into the US at the lower tariff will be shared out among UK carmakers. British manufacturers exported 102,000 cars to the US in 2024. 'The worst thing what can happen to a running business is the announcement of lower tariff,' Walliser said on Tuesday at an automotive conference run by the Financial Times. '[It] means all your customers say: 'Oh, no worries, I don't buy a car now.'' Bentley has kept prices steady since the tariffs were introduced, partly by rushing to ship more cars to the US before the levies kicked in, as well as running down existing stocks. That strategy is running out of time. 'We need the feedback within the next two, three weeks, to keep this going, Walliser said. Keir Starmer visited Jaguar Land Rover (JLR), Britain's biggest automotive employer, to announce the trade deal. JLR said on Tuesday that the announcement 'brings greater certainty for our sector and stakeholders' but added that it still needed 'the detail of the trade deal'. JLR would have been among the most affected by the tariffs, and executives were on the verge of imposing steep job cuts to make up for declining sales. The UK's ambassador to the US, Peter Mandelson, said the deal saved jobs at JLR that had been due to go within days. Before the tariffs, the company had otherwise been in good financial health. JLR said on Tuesday it made profits of £2.5bn in the financial year to the end of March. That was up 15% year on year and the best profit before tax in a decade, excluding exceptional costs. JLR went through a difficult period at the start of the decade, with a series of strategic missteps, including expanding too quickly in China. However, the first three months of 2025 represented the 10th quarter of profit in a row.
Telegraph
19-03-2025
- Automotive
- Telegraph
Drivers may never want to give up combustion engine, says Bentley
Bentley is pressing ahead with plans to go all-electric despite its chief executive admitting that some drivers will never want to give up petrol or diesel cars. Frank-Steffen Walliser conceded that the luxury carmaker's green transition could scare off some customers, especially those who believe:'If it's not a combustion engine, I will not drive it.' He issued the warning after Bentley recently started work on its first electric vehicle production line in Crewe. The company's 85-year-old Pyms Lane plant is set to begin building its first electric model, a battery-powered SUV, next year, with the first deliveries expected in 2027. Mr Walliser, who was appointed last July, reiterated a pledge to roll out a new electric or hybrid model each year for a decade as a prelude to moving to an EV-only line-up by 2035. The chief executive said the company's clientele is split between people happy to have the latest technology and others who are wedded to traditional engines. Bentley is intent on pursuing the former, he said, claiming its aim is to develop an EV that can win over doubters. He said: 'We have a wide variety of customers. They are not driven by the cost per mile. Different things excite different drivers. 'There are, for sure, customers who say, fine, if it's the latest and greatest technology I will take it, whatever it is.' However, he said others will take the view that 'if it's not a combustion engine, I will not drive it'. Mr Walliser said anticipating future sales trends was more important than focusing on holdouts against EVs, stressing that the electric SUV would help to boost sales. He said: 'If we have a great product, a true Bentley, maybe the best Bentley ever, then we will have enough pulling power no matter what the drivetrain.' Bentley scrapped plans to move to an electric-only line-up by 2030 last November, pushing the date for ending hybrid combustion engine sales back five years. Mr Walliser said the British brand, owned by German automotive giant Volkswagen (VW), was 'maybe a little bit too bullish in the beginning'. He said Bentley is monitoring public attitudes to EVs and anticipates that sluggish demand will begin to pick up. He said: 'Our judgment is that, at the moment, we are at the very deep point on the acceptance of electric cars. We assume it will come back.' Bentley ended production of petrol-only cars last year as it retired its W12 engine, with all models now equipped with hybrid engines as part of the transition towards EVs. The chief executive's comments come after VW-owned Audi said it was reconsidering plans to halt new petrol model launches from next year, a day after revealing that it was cutting 7,500 jobs. Another sister company, Porsche, last month announced that it would expand its petrol-car range after concluding that combustion engines would be around for significantly longer than previously thought. Bentley's operating profit fell almost 40pc to €373m (£314m) last year, though the company said it achieved record revenue per car as it focuses on 'value over volume'. Almost three quarters of buyers opted for the bespoke options from the company's Mulliner personalisation division, which typically costs three times more than the baseline price. Earnings were held back by a volatile economic environment, Bentley said, with the Chinese market posting a drop in sales. Mr Walliser also said it is not yet clear whether Bentley, which imports parts from Europe, would be affected by Donald Trump's trade war. The US market, the company's biggest, has seen no reaction so far to the threat of tariffs, he added, with potential buyers conscious that the situation may change and 'staying cool'.
Yahoo
19-03-2025
- Automotive
- Yahoo
In tough global market, Bentley posts lowest revenue since 2020
By Nick Carey LONDON (Reuters) - Bentley on Wednesday posted its lowest annual revenue since the COVID pandemic struck in 2020 as the British luxury automaker faced a tough global market in 2024, but said it was pursuing "value over volume" with revenue per car up 10% versus 2023. The Volkswagen unit reported an operating profit for 2024 of 373 million euros ($407 million), down 37% from 589 million euros the previous year. Revenue fell 10% to 2.648 billion euros, from 2.938 billion euros in 2023. Speaking to reporters, CEO Frank-Steffen Walliser said the company would no longer publicly disclose how many cars it sold. But he said Bentley's revenue per car had hit record levels as high-end customers continue to invest in bespoke features that sharply raise the price and profit margin for the automaker. "This is a very clear indicator that we put value over volume," Walliser said. As an example, executives referred to a recent limited edition vehicle painted the colour of rose gold, which featured up to 210 grams of 3D printed hallmarked 18-karat rose gold at key driver touchpoints inside the car. Walliser highlighted that the luxury market in China, a key country for Bentley sales, remains "quite challenging." Chief financial officer Jan-Henrik Lafrentz said that if U.S. President Donald Trump goes ahead with tariffs of 25% on cars, Bentley would simply add that to customers' bills. "We are assessing different scenarios on how to handle it, but it will be finally passed on to the consumer," Lafrentz said. Lafrentz said that so far recent stock market turmoil and investor fears of a possible U.S. recession had not had any impact on sales. "We don't see it in the order book yet," he said. Bentley will launch its first electric car in 2026, with a new electric or hybrid model due out every year over the next decade until the company goes all electric in 2035. ($1 = 0.9163 euros) Sign in to access your portfolio
