2007 Bentley Continental on 2040-cars

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If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Odds are on Bentley Mulsanne replacement to be a flagship SUV

Volkswagen Group brand Porsche sells SUVs so that it can afford to pour money into its segment-defining sports cars. For fellow VW Group brand Bentley, that math doesn't work; Porsche sold around 280,000 cars last year, more than 190,000 of them the Cayenne and Macan, compared to Bentley's total sales of 11,006. The English maker, recently recovered from trying times, must therefore be especially choosy about apportioning resources when deciding what to build. When the company looked at the prospects for the Mulsanne, Bentley realized that developing a four-door sedan replacement wouldn't pay off, so designers fashioned the new Flying Spur into a kind of Mulsanne Lite. If a new model from Crewe ascends into the $300K-plus arena, odds are it will be a crossover. In comments to various outlets over the past few weeks, including Top Gear, Car, and Car and Driver, Bentley CEO Adrian Hallmark didn't explicitly admit the arrival of a big-money crossover. However, he said almost everything one could say without admitting it. His comments were previewed last year by those of Werner Tietz, the Bentley board member for engineering. On the subject of updating the automaker's lineup, Tietz told Autocar Bentley's goal is to sell to new customers, and for that, "There is some potential when you look at SUVs too, especially around a car larger than the Bentayga if you consider its value to the Chinese and American markets. So, yes, that is one opportunity we are exploring." Five years ago, talk about a Bentayga variant centered on a sleeker coupe style, not something bigger and badder, but much has happened since then. Hallmark explained that the market for mid-six-figure big sedans has dropped to 1,000 sales worldwide, chopped up between the Mulsanne and Rolls-Royce Phantom. Roughly 90% of Mulsanne sales are to under-40s in China and over-60s in the U.S. While "it's a great business ... it's a shrinking business" because aging Mulsanne buyers in the U.S. don't want to drop another half million dollars on a daily driver, opting for a Flying Spur or Bentayga instead. As for the Chinese market, the CEO confessed to Car, "[If] we did a — not to give you the answer — if we did a longer wheelbase Bentayga, every single one of those Mulsanne customers in ChinaÂ… would take that instead."  The Bentayga soaks up almost half of Bentley sales.

Bentley warns its 6.0-liter W12 engine won't survive beyond 2026

Bentley confirmed it will only sell plug-in hybrid and electric models by 2026, so its W12 engine will either be axed. Autoblog learned from a company spokesperson that the latter solution has been chosen. "No more W12," a representative replied when we asked what the future holds for the engine. It's a tectonic shift for Bentley, which proudly calls itself one of the industry's largest manufacturers of 12-cylinders. What remains to be seen is when the 6.0-liter will retire. Jan-Henrik Lafrentz, Bentley's board member for finance, affirmed there is "a lot of mileage left in [the W12]," which suggests it's not going away in the coming days, weeks, or months. Its days are undoubtedly numbered, however, which shows the British firm isn't afraid to make difficult decisions to keep up with regulations and market demand. It illustrated this point well when it axed the Mulsanne, its flagship model in the 2010s, earlier in 2020. Pivoting toward electric powertrains gives it an opportunity to return to the segment; sedans normally return better range than comparable SUVs because they tend to be lighter and more aerodynamic. Will it? Executives didn't say a comeback is imminent, but they didn't rule it out, either. "The market for big sedans is interesting. It has changed a lot over the past 20 years. It's not in a growth phase. While we have a great heritage in that space, we have a perfect sedan with the Flying Spur, so let's see what evolves as we release and reveal our electric car strategy," said company boss Adrian Hallmark. Bentley's first series-produced electric car is tentatively due out in 2025. Built on a new platform, it will be the first in a full range of EVs, and the company pledged to phase out the internal combustion engine by 2030.