Demand for luxury goods may outstrip mass-market demand thanks to rising income inequality, but that's not helping Bentley Motors.
Sales, profits and profits for the Volkswagen Group brand last year were all down from record levels set in 2022, as a growing segment of ultra-wealthy but modest customers refrained from buying new cars. It decreased by double digit percentage. Automaker bosses avoid flaunting their wealth.
“Even though our customers can still afford our cars, there is a certain level of emotional sensitivity,” CEO Adrian Hallmark said Thursday, CNN reported. “This has slowed down demand,” he said. Bentley did not respond to the request. luck For comments.
The British luxury brand stands out from the crowd with its stately elegance, emblematic of cool Britannia, and is one of the reasons it was Queen Elizabeth II's favorite car manufacturer.
The company's customers are less likely to seek the critical scrutiny that comes with owning a flashy sports car like a Lamborghini, as they prefer the flashy design that's part of the Italian brand's DNA. Even BMW's Rolls-Royce, whose internal combustion cars offer only his 12-cylinder engine, is not as modest as Bentley.
However, inflation is outpacing growth in the UK and Europe, and conditions remain challenging amid the cost of living crisis. Russia's invasion of Ukraine forced the region to shed its heavy dependence on President Vladimir Putin for vital resources such as energy and minerals, and national economies are still enduring a painful readjustment as a result.
Bentley vehicle sales to customers in the United Kingdom and Europe, which rival the United States as the largest markets, fell by 18% and 15%, respectively. This compounded other worries in China, where volumes have similarly fallen due to deflationary headwinds.
Despite this, the 13,560 cars Bentley delivered to customers is the company's third highest single-year result ever.
Hallmark steps down to become Aston Martin's fourth CEO in four years
In a surprise move that could upend cautious optimism heading into 2024, Hallmark resigned with immediate effect on Friday to take the reins of British luxury sports car maker Aston Martin. He is expected to take over as CEO by October of this year at the latest.
“In Adrian Hallmark, we are adding one of the most talented leaders not only in our segment, but across the global automotive industry,” Aston executive chairman Lawrence Stroll said in a statement Friday. .
Hallmark has led Bentley through a period of tremendous growth, turning the company around from a huge operating loss of 288 million euros ($312 million) in 2018, the year he was appointed CEO. Peak profits reached 708 million euros two years ago on the back of a surge in demand. For its flagship Bentayga SUV. In the process, he restructured Bentley's strategy and focused on making it the most sustainable brand of ultra-luxury cars by the end of the century.
He will do his best job at Aston. In January 2020, Stroll initially led a consortium of investors to rescue struggling brands. But the rudderless company hasn't been at peace since veteran CEO Andy Palmer stepped down shortly after, and Hallmark will become the company's fourth CEO in as many years.
This article originally appeared on Fortune.com
