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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.
