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VW Group shareholders demand Bentley return to profit

The Volkswagen Group's main shareholders are giving British ultraluxury division Bentley an ultimatum to turn around its finances and start earning a profit. The Piech and Porsche families did not say what would happen if the brand fails to return to the black, but they said it should happen within two years. "The important thing is for every (VW Group) brand to generate a reasonable contribution again," Wolfgang Porsche told the subscription-only Frankfurter Allgemeine Zeitung, as relayed by Automotive News. "That is not currently the case at Bentley, and we are not satisfied." Volkswagen Group has not yet issued its report for full-year 2018, but Bentley had lost the equivalent of $157 million through the first nine months on an 11 percent decline in sales. In 2017, Bentley sold 10,566 vehicles globally, with revenue down 9.2 percent from 2016. VW Group apparently cites the slow rollout of the Continental GT and the British pound's lower value amid Brexit talks, which makes the many parts it sources from continental Europe more expensive, as among the reasons. A German study last summer claimed that Bentley lost a little more than $19,000 on each car. Adrian Hallmark started as CEO in February 2018 after heading global brand strategy for Jaguar. Bentley in 2018 released the all-new 2019 Continental GT after a nine-month delay, and it revealed the GTC convertible version in Los Angeles. Hallmark has said 2019 "is a conversion year to a better business model" after a year plagued by problems that also included European WLTP certification. He announced last year the luxury brand would no longer build new sports cars, though the brand says it's still committed to the idea of the two-door GT. Bentley has also said it wants electrified versions of all its models by 2025, which will be an expensive proposition and will likely including plug-in hybrid versions of current models.

Matthias Muller officially named VW Group CEO

While the vast number of rumors made it seem like a foregone conclusion, Porsche boss Matthias Muller has officially been named Volkswagen Group CEO to replace the recently resigned Martin Winterkorn. His contract runs through the end of February 2020, and until a replacement is found, Muller also gets to hang onto his old job as chairman of Porsche. At the same time, the VW Group Supervisory Board is announcing a massive structural reorganization across the entire company, with the new management model in place by the beginning of 2016. Contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. The board wants a greater emphasis on brands and regions going forward, and the scale of this shift can be seen in the US. On November 1, VW Group business in the US, Mexico, and Canada is being combined under the leadership of current Skoda chairman Winfried Vahland. However contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. Other brands are also seeing some significant changes mechanically. Porsche, Bentley, and Bugatti now fall under the Group's "sportscar and mid-engine toolkit." This means that the brands will start sharing standardized technical parts. A Chief Technical Officer across all of the company's brands will also start working toward future innovations. The new brand-centric view means the end of a group-wide production department. "Going forward, the brands and regions will also have greater independence with regard to production. So it follows that they should also hold the responsibility for these activities," Berthold Huber, interim Chairman of the Supervisory Board, said in the announcement. In a statement with the press release about his promotion, Muller promised to turn the company around after such an international crisis. He said: "My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation. Under my leadership, Volkswagen will do everything it can to develop and implement the most stringent compliance and governance standards in our industry." Matthias Muller appointed CEO of the Volkswagen Group Muller remains Chairman of Porsche AG until a successor has been found Matthias Muller (62) has been appointed CEO of Volkswagen AG with immediate effect.

Bentley Bentayga may spawn sportier fastback version

In the past few years, Bentley has shown us two different conceptions about what its future might look like in: the SUV that started life as the EXP 9 F concept and has now entered production as the Bentayga, and the EXP 10 Speed 6 concept that previews a future sports coupe from the stoic British marque. The next step is an SUV that combines a little of each of them. According to Automotive News, engineers and designers in Crewe are currently laying the groundwork for a crossover that would blend the tall form of the Bentayga with the roofline of the Speed 6. The result would be similar in form, we'd imagine, to the likes of the BMW X6 and Mercedes GLE Coupe, only even further upscale. We wouldn't be surprised to see more changes than the roofline and tail section, either, with a sportier front end and more avant-garde headlights (like those we saw on the Speed 6 concept) giving it a sportier, less stodgy appearance all around – and maybe, just maybe, a different nameplate. CEO Wolfgang Durheimer wants to get the fastbacked Bentayga variant ready by 2018 or 2019 – right around the time that Rolls-Royce, Aston Martin, Maserati, and Lamborghini will be rolling out their debut crossovers. By that time, Bentley will have already have had the Bentayga on the market for two or three years, and wants to be ready to fight off the onslaught with something fresh. "Imagine the EXP 10 as an SUV. It doesn't look 'old Bentley, Durheimer told AN. "The Bentayga doesn't stop us from dreaming and looking down the road. The more success we have with it, the more we can take the best of it and run with it." Proceeding with the project will require Durheimer to get approval from the Volkswagen Group head office in Wolfsburg, but the business case seems like a slam dunk. The model would help Bentley (and VW) further capitalize on the $1 billion it already spent developing the Bentayga, following a successful business model laid out by rival BMW and which Germany's other automakers are quickly learning to emulate. This wouldn't be the first time he'd be seeking approval from Matthias Muller on such a project, either. Durheimer successfully ushered the Cayenne into production when he was head of R&D at Porsche and Muller was the brand's CEO.