2

Bentley CEO: ‘Never seen spending patterns’ like this before with luxury consume...

 1 year ago
source link: https://finance.yahoo.com/news/bentley-ceo-never-seen-spending-patterns-like-this-before-with-luxury-consumer-162414686.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Bentley CEO: I’ve never seen spending patterns like this
 announcing record operating 
 profits for the first nine 
645e4ec0-5ac6-11ed-bb1d-a56509ab5c49
Scroll back up to restore default view.

Bentley CEO: ‘Never seen spending patterns’ like this before with luxury consumer

Pras Subramanian
·Senior Reporter
Thu, November 3, 2022, 1:24 AM·4 min read

For British luxury automaker Bentley (VOW.DE), 2022 may leave a strong 2021 in the dust.

Through the first nine months of 2022, Bentley reported record operating profit of €575 million ($577,129,608), more than double the amount from a year ago. The previous full-year record high for operating profit was €389 million ($383,651,250.00). Revenue through the first nine months came in at €2.490 billion ($2,455,762,500.00), a jump of 28% from a year ago.

For Bentley CEO Adrian Hallmark, the results are astonishing because the automaker only increased sales of cars by 3%, yet profitability soared.

“The exciting part for me is that we've doubled the profit year to date, with only a 3% increase in [sales], and that's all about quality of margin,” Hallmark says to Yahoo Finance. “It's all about these higher price cars with more personalization, order bank driven, not stock build driven; and we've got the right formula, and we're going to be ruthless about maintaining that [profit] pool.”

Adrian Hallmark, CEO of Bentley Motors, poses for a photograph next to one of his company's cars on the production line of their factory in Crewe, Britain January 22, 2019. REUTERS/Phil Noble
Adrian Hallmark, CEO of Bentley Motors, poses for a photograph next to one of his company's cars on the production line of their factory in Crewe, Britain January 22, 2019. REUTERS/Phil Noble

Hallmark and the Bentley team were finding that their well-healed clientele were more interested in customization, wanted to be a part of that process, and were willing to pay for it. Prospective and new clients can visit the Bentley factory in Crewe, England if they wish to go through the entire customization process, which can result in literally millions of different combinations.

The strong push for customization from Bentley clients is so strong that even a seasoned exec like Hallmark is blown away.

“I've been in this industry and in this sector for nearly 28 years. I've never seen spending patterns like it and not just in Bentley,” Hallmark says. “The diversity of what people are ordering, exterior and interior is just fundamentally changed. So there's more customers out there. And they're way more interested now in self expression. And in personalization.”

General view outside Bentley Motors in Crewe, following the outbreak of the coronavirus disease (COVID-19), Crewe, Britain, June 5, 2020. REUTERS/Molly Darlington
General view outside Bentley Motors in Crewe, following the outbreak of the coronavirus disease (COVID-19), Crewe, Britain, June 5, 2020. REUTERS/Molly Darlington

Hallmark says Bentley has optimized the factory and its processes, in order to add the custom work and myriad of options available for cars to the factory line itself or near it, in order streamline production. He says he and the team have “industrialized complexity.”


About Joyk


Aggregate valuable and interesting links.
Joyk means Joy of geeK