China economy meltdown hits UK car giant as profit | Tech News
An iconic British model has felt the sting of China’s financial slowdown with gross sales figures main to a fall in profit margins. Bentley, now owned by Germany’s Volkswagen Group, reported working income have been down a staggering £178million in comparison with final yr.
The firm reported an working profit of €373m (£314m) in 2024, nonetheless the fourth-highest within the company’s historical past. However, the figures have been nonetheless down on the €589m (£492m) of profit loved by the model back in 2023. The numbers are additionally down on the record-breaking 2022 figures the place Bentley picked up income of round £595m.
Despite the drop, Bentley CEO Frank-Steffen Walliser welcomed the information and confused the company had “laid the foundation” for the longer term.
He stated: “We consider 2024 a positive year, despite the headwinds we felt in some of our markets.
“Three of our four models were heavily updated, so with all the investment it was a transition year, and we’ve laid the foundation for 2025 in terms of the products.”
Bentley has additionally confirmed the model nonetheless aimed to change into an electric-only model by 2035.
Mr Walliser revised the goal final yr after Bentley had initially hoped to shift their focus to EVs from 2030.
Bentley anticipated to reveal its first electric machine in 2026 earlier than it goes on sale to the public in 2027.
In a enhance for the UK car market, Bentley’s new electric model might be constructed at a new meeting line in Crewe.
The Bentley boss additionally addressed issues over potential US tariffs and the knock-on impact it might have on shoppers.
Last month, US President Donald Trump recommended that he might invoke stated tariffs of up to 25% on overseas vehicles in a bid to bolster US industry.
However, the Bentley chief has now recommended that any US tariffs may very well be handed straight onto shoppers in a main blow.
Frank-Steffen Walliser added: “We are assessing different scenarios on how to handle it, but it would eventually be passed on to consumers.”
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