Bentley Continental GTC Speed V Kingfisher.
Adam Jeffrey | CNBC
Bentley Motors is delaying its plans to offer fully electric cars exclusively by the end of this decade due to changing market conditions and delays in production of its first electric car.
CEO Adrian Hallmark said the iconic British luxury carmaker remains committed to carbon neutrality and offering electric cars exclusively, but now plans to do so after two years. Hallmark said Bentley will continue to offer plug-in hybrids alongside plug-in electric cars, or battery-powered electric vehicles, following its previous target of 2030.
“Whether we deliver all electric cars by 2031 or not, we still have some hybrid cars that we don't have after 2030,” he said during a press conference. “But not for 10 years, maybe just a few years when we exhaust it.”
Bentley is among a growing number of automakers changing, delaying or canceling its ambitious electric vehicle plans as global adoption grows more slowly than many expected.
Bentley's first electric car was expected to be launched next year, followed by a new all-electric model every year as part of a plan to invest $3.4 billion by 2030. The company now expects its first electric car to be launched in 2026, delaying its launch. Of later vehicles as well.
Bentley CEO Adrian Hallmark.
Scott Milin | CNBC
The delay in Bentley's first all-electric car was the result of software issues as well as the difficulty of developing the car's architecture to Bentley standards, according to Hallmark. He said those challenges were the main driver behind delaying electric vehicle plans, not changing market conditions.
Hallmark said Bentley will increase its investment in hybrid vehicles by hundreds of millions of dollars in the coming years. He said that given the increase in investment, the company needs to “run it a little longer” to achieve the desired return on investment.
Bentley currently offers hybrid versions of the Bentayga SUV for $203,200 and the Flying Spur sedan for $221,200. Both include motors as well as EV components and an electric range.
Bentley still plans to end production of conventional internal combustion engines, including its popular V-12 engines next month, and non-hybrid V-8 engines by July or August.
An employee inspects a Bentayga SUV on Bentley's production line at its factory in Crewe, England, on December 7, 2022.
Phil Noble | Reuters
An update to Bentley's EV plans was announced alongside VolkswagenThe financial results of the owned company for the year 2023.
These results include deliveries of 13,560 vehicles globally, down 11% from the record of about 15,200 vehicles in 2022. Revenue was $3.21 billion, down 13% compared to the previous year, with operating profit of $644.7 million, down 17%.
Hallmark described 2023 as a great year for the company but also “a year of huge swings in performance across the overall luxury market” that impacted the business. He cited challenges including changing sales dynamics in China as well as macroeconomic concerns and rising interest rates for the 30% of buyers who lease their cars.
Bentley's performance in 2023 significantly outperformed 2021, when it sold more vehicles but at a lower profit. Hallmark said the increase in revenue and profits compared to two years ago is a direct result of customers choosing more customization and add-ons for their cars.
