Bentley Profits Affected by Economic Downturn
The prestigious British marque, Bentley, part of the Volkswagen Group, has experienced the impact of China’s slowing economy, leading to reduced sales and a subsequent decrease in profit margins. The luxury automaker reported a significant drop in operating profits, falling £178 million compared to the previous year.
Profitability Remains Historically Strong Despite Decline
In 2024, Bentley announced an operating profit of €373 million (£314 million). While representing a considerable sum and the fourth-highest profit in the company’s history, this figure is notably lower than the €589 million (£492 million) profit recorded in 2023 and also below the record-breaking figures of approximately £595 million achieved in 2022.
CEO Emphasizes Positive Long-Term Strategy
Despite the reported profit reduction, Bentley Chief Executive Officer Frank-Steffen Walliser conveyed optimism. He emphasized that the company has “laid the foundation” for future growth and success.
“We view 2024 as a positive year, notwithstanding the challenges we encountered in some of our markets,” Mr. Walliser stated.
He further explained, “With substantial investment and updates to three out of our four model lines, 2024 was a year of transition. We have strategically positioned ourselves for 2025 with our product range.”
Electric Vehicle Transition Remains a Priority
Bentley reaffirmed its commitment to transitioning to a fully electric vehicle lineup by 2035.
Mr. Walliser adjusted the original target from 2030, which was revised last year. The company anticipates unveiling its first battery-electric model in 2026, with public sales commencing in 2027.
UK Manufacturing to Benefit from New EV Model
In positive news for the UK automotive sector, Bentley’s forthcoming electric vehicle will be manufactured at a newly established assembly line in Crewe, England.
Concerns Raised Over Potential US Tariffs
The Bentley CEO also addressed concerns regarding potential tariffs imposed by the United States and the potential repercussions for consumers.
Last month, former US President Donald Trump suggested the implementation of tariffs, potentially up to 25%, on imported vehicles to bolster the domestic US industry.
Tariffs Likely to Impact Consumers
Mr. Walliser indicated that any US tariffs imposed would likely be directly passed on to consumers, resulting in increased vehicle costs.
“We are evaluating various strategies to manage this situation, but ultimately, these costs would likely be transferred to the consumer,” Frank-Steffen Walliser concluded.