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Bentley bringing two-seat sports car to Geneva?

Long subsided on the Continental and Mulsanne model lines, Bentley is on a mission to expand its production portfolio. And the latest reports from Great Britain suggest that it'll present a proposal for expanding it further next month with a conceptual two-seat sports car. The idea has been rumored for several months now, but Autocar claims that Bentley will showcase the two-seat GT at the upcoming Geneva Motor Show. The new model is tipped to be positioned alongside (instead of substantially above or below) the existing Continental GT – much like Ferrari offers the California and 458 Italia (or new 488 GTB) at roughly the same price point – but will likely pack the British automaker's now-familiar, Audi-sourced 4.0-liter twin-turbo V8. Its presentation at the Swiss expo will give Crewe the chance to gauge public opinion before deciding whether to proceed with production plans. It wouldn't be the first time that Bentley had toyed with the idea of a more compact GT. It revealed the Java concept way back in 1994 that never, strictly speaking, made production, but could be said to have paved the way for the current Continental range, and showcased the Hunaudieres mid-engined supercar prototype in 1999 that presaged its winning entry into Le Mans. The as-yet unnamed two-seat GT would be just one of several new models being touted for the British automaker. It is set to launch the new Bentayga crossover in the near future, potentially to be followed by a slant-back crossover coupe variant, a smaller crossover is also said to be under consideration, and it is also rumored to be weighing a four-door coupe to slot in between the Flying Spur and Mulsanne, the latter of which has also been showcased as a two-door convertible version as well.

Bentley CEO Adrian Hallmark explains carmaker's situation and plan for recovery

In August, we posted on some of the issues plaguing Bentley at the moment, namely the large loss the carmaker's posted this year. The same Autocar piece we referenced, carmaker CEO Adrian Hallmark said Bentley would not be making more sports cars. Bentley wrote to us to clarify that a single year's loss isn't a calamity, that "it is a mistake to suggest that sports cars are the same as GTs," and that the brand "will continue to design, engineer, and craft" GT cars. We must note, though, that at the time, Hallmark himself said, "The sports car sector – like our own...." More recently, Hallmark expounded on some of the factors slowing the company down this year, from delayed launches to exchange rates. Through the first nine months of the year, Bentley sold 6,654 units, an 11 percent decline from the 7,498 units sold through the first nine months of 2017. In addition to other matters like huge investments in new technologies, that helped the Crewe carmaker to a $44.7-million year-over-year drop in revenue, and a $156-million overall loss, compared to a $35 million profit over the same period last year. On top of declining sales overall, the nine-month delay in launching the Continental GT, the brand's second-best seller, was the first of two big issues causing red finances. Hallmark said the Continental GT "just wasn't ready for launch. But we'd paid for it – we'd paid all the money out, but not got any money back in." Having got that sorted, the second issue arose: WLTP certification. Unlike the New European Driving Cycle (NEDC) before it, the Worldwide harmonized Light vehicles Test Procedure requires every model variant get tested for certification. Hallmark told Automotive News Europe, "We were not quick enough unfortunately to book capacity or prioritize our derivatives within some of the group processes to get them certified on time." Bentley wasn't alone in this; Volkswagen had only managed to get seven of its 14 models approved by September 1 when the WLTP rules took effect. Bentley's much smaller scale exacerbated the problem, turning the situation "close to catastrophic." Hallmark said the snafu robbed the Bentayga of 300 to 400 sales - a gigantic number with respect to a $200,000 vehicle - and pushed the Bentayga plug-in hybrid launch back to March 2019 so Bentley could get volume models certified. Furthermore, preparing for Brexit hasn't been easy on any of the UK's manufacturers.

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.