Demand for luxurious items could also be outstripping mass market equivalents because of the widening earnings hole, however that isn’t serving to Bentley Motors.
Gross sales, income and earnings on the Volkswagen Group model all dropped by double-digit percentages final yr from their report ranges in 2022 as its growing base of ultra-wealthy but understated prospects opted in opposition to shopping for a brand new automobile—and did so, in keeping with the carmaker’s boss, to keep away from flaunting their fortune.
“Even though our customers can still afford our cars, there was a level of emotional sensitivity that slowed down demand,” CEO Adrian Hallmark was quoted by CNN on Thursday as saying. Bentley didn’t reply to a request by Fortune for remark.
The U.Okay. luxurious model stands other than its friends for its stately magnificence symbolic of cool Britannia—one of many causes it was a favourite carmaker of Queen Elizabeth.
Its prospects are much less more likely to search out the judgmental stares that include proudly owning flashier sports activities vehicles like a Lamborghini, whose prospects want the ostentatious design baked into the Italian model’s DNA. Even BMW’s personal Rolls-Royce, whose combustion vehicles solely provide 12-cylinder engines, it much less reserved than Bentley.
But instances have been robust amid a cost-of-living disaster within the U.Okay. and Europe, the place inflation has outpaced development. Russia’s invasion of Ukraine compelled the area to ditch its heavy reliance on Vladimir Putin for essential sources like power and minerals, and their nationwide economies are nonetheless enduring a painful readjustment in consequence.
Gross sales of Bentley automobiles to prospects within the U.Okay. and Europe—which collectively rival the U.S. as its largest market—fell by 18% and 15%, respectively. This exacerbated a separate malaise in China, the place deflationary headwinds noticed volumes drop by an analogous quantity.
However, the 13,560 vehicles Bentley delivered to prospects nonetheless amounted to its third greatest ever single yr end result.
Hallmark leaves to turn out to be Aston Martin’s fourth CEO in 4 years
In a shock transfer that would derail its cautious optimism for 2024, Hallmark stepped down from his put up on Friday with rapid impact to be able to take up the reins at British luxurious sports activities automobile maker Aston Martin. He’s anticipated to take over as CEO no later than October this yr.
“In Adrian Hallmark, we are attracting one of the highest caliber leaders not just in our segment, but in the entire global automotive industry,” Aston’s government chairman Lawrence Stroll mentioned in a statement on Friday.
Hallmark presided over a staggering interval of development for Bentley, turning the corporate round from a large €288 million ($312 million) working loss in 2018 when he was appointed CEO to peak earnings of €708 million two years in the past on the again of surging demand for its workhorse, the Bentayga SUV. Within the course of he reshaped Bentley’s technique to give attention to making it essentially the most sustainable model for ultra-luxury automobiles by the tip of this decade.
He may have his work minimize out for him at Aston. In January 2020, Stroll led an investor consortium that originally rescued the struggling brand. However the rudderless company has not discovered peace ever since veteran CEO Andy Palmer departed within the rapid aftermath, with Hallmark now set to turn out to be the fourth CEO in as a few years.
