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Bentley SUV given green light by VW board

The "will they, won't they" saga over Bentley's SUV plans appears to finally be over. They will. That's according to the German business newspaper Handelsblatt, which is reporting that the controversial SUV will be built after receiving the go-ahead from Volkswagen's board.
Known internally as "Falcon," the still-unnamed Bentley SUV will be based on the EXP 9 Concept that received wildly mixed reviews at its 2012 Geneva Motor Show unveiling. Since the EXP 9's unveiling, there have been a steady stream of leaks and rumors suggesting that the bold-faced vehicle will get a redesign prior to going into production, but it remains unclear how different the final vehicle will look.
According to Automotive News, Bentley is itself stopping short of confirming the green-light report, though it does admit that the SUV's production outlook appears "very positive." Production will likely take place in Slovakia at a plant owned by parent Volkswagen.

Baby Bentley studied for 2020, but it might not be cheaper

Bentley may step down a segment with a new, smaller luxury car that it hopes to have ready by 2019. The British luxury marque's fifth model line, assuming that its SUV ever makes it to market, though, is still in the earliest planning stages.
Kevin Rose, Bentley's head of sales and marketing, spoke with Autocar at the Geneva Motor Show about the proposed new vehicle. "At the moment, our line of thinking is for a smaller car. But smaller doesn't necessarily mean cheaper," he said. The brand believes the price floor of its models should be 100,000 pounds ($167,240).
The smaller Flying B isn't the only project being worked on. Rose hinted that it is considering an even more expensive model above the Mulsanne priced at around 300,000 pounds ($501,735) that would compete with the Rolls-Royce Phantom. "The twin pillars of the Bentley brand are performance and luxuriousness. Any car that offers something unique, with both of those bases well covered, is on the table," he said.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.