Bentley annouunces profits of £334 million in the first half of 2022 – more than in the whole of 2021 – despite Covid and ‘Chip’ shortages.
We know car makers are struggling to make enough cars to fulfil demand in a world of Covid hangovers and parts shortages, and it’s something of a logistical nightmare which is taking forever to resolve.
Some car makers – like Jaguar Land Rover – seem to be struggling more than others, but one example of how a crisis can be turned into an opportunity is Bentley, which has just posted record first-half profits for this year.
In fact, Bentley is doing so well that its profit of £334 million in the first half of 2022 is actually more than its profit in the whole of 2021. How can that be?
Well, it seems VW must be ensuring that the high-margin Bentley business deserves to get more than its fair share of parts, but it would seem the profits come from a big jump in prices paid this year. Bentley says that’s down to a greater level of personalisation, but it also seems likely discounting has disappeared as buyers are desperate to get their hands on a new car.
Sales numbers in the first half rose from 7,199 in the first half of 2021 to 7,398 in 2022, but the average sale price rose from £156,000 to £179,000 delivering Bentley a record 23.3 per cent return on sales, with the Bentayga the biggest seller (40 per cent of sales), followed by the Continental GT (33 per cent) and Flying Spur (27 per cent).
Bentley’s Jan-Henrik Lafrentz said:
Bentley has continued to focus its efforts on building sustainable, long-term profitability. These results reflect a strong base pricing position, increased revenue through optionality and favourable foreign exchange rates. In parallel, we continue to maintain our lower cost base which is leading to a restructured business model that is delivering strong returns on our investment and sales.