Bentley CEO Adrian Hallmark mentioned the automaker’s nearer cooperation with sibling Volkswagen Group manufacturers Audi and Porsche and the UK automaker’s preparations for a no-deal Brexit in an interview with Automobilwoche, a German-language sister publication of Automotive Information Europe.
Bentley had an excellent 2019 and also you have been assured about this yr. How has it been thus far?
It has been a rollercoaster trip for us because it has for everybody. The primary quarter was one of the best within the firm’s 100-year historical past, regardless of the preliminary influence of COVID-19 from mid-March. The second quarter was additionally a document, however a document loss. It then recovered considerably within the third quarter. Once we have a look at the remainder of the yr, we’re in fairly good condition.
Will you be again within the black this yr?
On the finish of October issues appeared actually good. And we are able to nonetheless make it. However that isn’t sure. Every thing now is dependent upon what occurs with the second lockdown from November and the way we handle to ship the automobiles we’ve got in inventory. However I’m sure that we’re nonetheless on monitor to interrupt even for the yr as an entire, regardless of the heavy loss within the first half and a disastrous second quarter. If every part goes to plan, we should always be capable to make up the loss from the primary half, however that relies upon crucially on trouble-free manufacturing and logistics by the top of the yr.
And 2021? It’s doable there will likely be a tough Brexit with no UK-EU commerce deal on the finish of 2020.
It’s clear {that a} laborious Brexit would hit us. We purchase from the EU most of the parts that we use in our Crewe [England] plant. Europe can also be an essential gross sales marketplace for us. If there are delays on the border or customs duties, we’ll really feel the consequences very clearly.
How are you making ready for this?
We began increasing our inventories at an early stage. We’re hoarding like squirrels earlier than winter. Beforehand we had elements in inventory for 2 days, however now we’ve got expanded that to between 5 and ten days. This ties up loads of liquidity as a result of we preserve extra elements in inventory and it prices us some huge cash. However it’s at all times cheaper than stopping manufacturing. An important factor is that we preserve manufacturing operating. We’ve got replenished the shares in order that even when we’ve got issues with provides due to Brexit, we are able to proceed manufacturing for 2 weeks with out stopping the manufacturing unit.
Would it not not be an choice to maneuver manufacturing to the EU, for instance to Germany?
No. Our fashions are far too totally different from these of the opposite [VW] group manufacturers for that. Our cycle time in Crewe is thrice longer than that of the Porsche Panamera in Leipzig, for instance. Not as a result of we’re lazy or sluggish, however as a result of the complete manufacturing course of is ready up otherwise right here. Bentley Motors has a low-volume manufacturing with loads of guide work. If we have been to have the identical autos constructed at Porsche in Leipzig, capability there would instantly be diminished by two thirds. And constructing a brand new manufacturing unit only for us wouldn’t repay. That’s not an choice.
Bentley mentioned on Nov. 5 that from 2030 you’ll only build full-electric cars. So Bentley would be the first VW Group model to not supply a combustion-engine car. Did you actually need to be first?
We by no means noticed it that manner. We by no means needed to be final in something, however we didn’t have any plans to be first both. We merely appeared on the product life cycles of our fashions and when was the appropriate time to change to electrical drives. And it turned out that this labored completely for us on the finish of the last decade. On high of that, there was a transparent need from our clients for Bentley electrical autos.
Will it’s a giant change? Bentley presently has no full-electric fashions.
It’s a large step for us to go electrical in 2030. A 100-year-old firm that was recognized for one of the best 12-cylinder engines and probably the most profitable 12-cylinder engines is not going to be constructing any extra combustion engines in lower than a decade. By 2026, every part we provide will likely be electrified. Both plug-in hybrids with good electrical vary or full-electric automobiles. This can be a clear sign that we take the local weather targets significantly and need to make our contribution.
Will the W12 engine nonetheless be utilized in your automobiles till 2030?
I am unable to say but. After 2026 we’ll solely be constructing full-electric autos and plug-in hybrids. That’s after we will hybridize the W12 — or not. The large query is whether or not we are able to implement this within the W12. The W12 is probably the most environment friendly 12-cylinder engine ever produced, a real murals. However the EU 7 emissions commonplace will likely be very troublesome for the 12-cylinder. This can be a actual problem. And EU 7 will apply from 2025/26, and that’s precisely after we swap to plug-in hybrid. That is important timing for the 12-cylinder.
Your first full-electric mannequin is due in 2025. Are you able to inform us one thing extra about it?
It is nonetheless too early to enter element. However whichever mannequin it will likely be, whether or not it’s the Bentayga or every other mannequin, it will likely be a real Bentley, with the standing, measurement and expertise you’ll count on from a contemporary Bentley. And it will likely be commensurately priced.
What platform will you utilize? VW Group’s MEB mass-market platform, The PPE (Premium Platform Electrical) platform that’s being developed jointly by Audi and Porsche and even Audi’s new Artemis AV architecture?
Definitely not the MEB. We can not say extra but. What’s essential to us is that the platform for our first electrical car have to be future proof when it comes to autonomous driving, connectivity and electrical capabilities. It’s subsequently best for us to be concerned within the improvement course of from the very starting and to have the ability to assist outline the brand new structure, and never simply develop into customers of one thing that has already been partly developed.
To extend such technical sharing Bentley will likely be overseen by Audi inside VW Group, shifting from Porsche’s present oversight, sources have told Automobilwoche. Have you ever spoken with Audi CEO Markus Duesmann about Bentley’s future position within the Audi household?
In no way.
You have not talked to Duesmann? Or simply not about this subject?
I usually discuss to Markus Duesmann, and in addition to [VW Group CEO] Herbert Diess. However I cannot say something in regards to the discussions now. That is an inner matter. This is a chance for us. To date we’ve got two companions: Porsche and Audi. Relying on how Porsche and Audi’s PPE joint structure develops and who takes the lead, it may make sense to maneuver nearer to 1 or the opposite companion. This isn’t a strategic determination for us, it’s a pragmatic resolution for locating synergies inside the group. This can be a very open dialogue. We see it very positively, in no matter route it could go.