A Bentley SUV - folly or guaranteed success?
By: Ian Henry, AutoAnalysis, Tuesday, August 16, 2011, AutomotiveWorld.com
Porsche has shown how a 'one-trick pony' brand can extend its range and increase volumes on a sustained basis. Sharing engineering underpinnings and production facilities with Volkswagen helped make the business case for widening Porsche's product line-up.
Would the same apply at Bentley? Recent reports suggest a Bentley SUV in 2014, with mock-up pictures revealing something like a high-ride estate, rather than a full-blown SUV of Cayenne or Q7 proportions. Bentley's new chief executive (formerly head of Porsche R&D) is keen to make his mark and grow the brand.
The Continental GT showed there is a market for different vehicles from luxury brands, be that celebrities, footballers, the nouveaux riche of Russia and China, or the brand's established customer base. Even in difficult economic times, the wealthy have cash, and it would take the most monumental global economic collapse for Bentley to fail to sell even a few thousand SUVs per year.
Recent reports suggest a Bentley SUV in 2014, with mock-up pictures revealing something like a high-ride estate, rather than a full-blown SUV of Cayenne or Q7 proportions.
How many would Bentley need to sell to make the project viable? Here, we move into pure speculation - there is no established market for SUVs at the reported price of £150,000 (US$246,000). Special edition Range Rovers or Cayennes may get close to six figures in the UK, but for SUVs at £150,000 or more, it is uncharted territory.
However, the numbers may not actually matter hugely - Volkswagen has proved itself the master of platform engineering, creating a variety of models for its different brands off common underpinnings. The proposed SUV would be based on the new MLB architecture underpinning the next Q7, Cayenne and Touareg. In this way, the main development costs will have been covered and 'all' Bentley has to do is what a VW engineer once told me platform engineering involved - "put a different hat on a standard body".
Simple (or relatively simple for an automotive giant like VW) it may be in engineering and manufacturing terms, but is it so simple in branding and marketing terms? In the early years, old and new Bentley customers alike would buy up all that Crewe could produce. But how long will this last? And what of the competition?
Maserati is reportedly working on an SUV, based on a Jeep - arguably not the best basis for a luxury SUV. Aston Martin is working on the Lagonda SUV, reportedly based on the Mercedes-Benz GL. Lamborghini, another VW brand, is also said to have an SUV in development.
It may not be what we are used to, but Bentley's new chief executive wants to drive the brand into new areas, and he will have had backing from on high to do so.
A Bentley SUV would have limited direct competition - possibly just Aston Martin, maybe Lamborghini; however, in this tiny segment, conventional competitive issues may not apply. Those who can afford £150,000 probably already have at least one similarly priced vehicle, and a Bentley SUV could just be this year's 'must have' automotive accessory. This would be a risk, suggesting a transient market for the vehicle.
Finally, the brand stretch question: would a Bentley SUV devalue the brand? For some traditionalists, it may. Porsche traditionalists did not like the Cayenne. However, this worked and a second, smaller Porsche SUV is on the way. It may not be what we are used to, but Bentley's new chief executive wants to drive the brand into new areas, and he will have had backing from on high to do so. A Bentley SUV would also help move the brand away from the residual perception in some quarters as 'an old man's car'. The Continental GT brought younger customers and fans to the brand, and a Bentley SUV would do the same. And, with Volkswagen's skills in platform engineering, it may well help the brand on the road to sustained profitability.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.
Ian Henry is a director of AutoAnalysis, an independent automotive research and consulting company based in London.
The AutomotiveWorld.com Expert Opinion column is open to automotive industry decision makers and influencers. If you would like to contribute an Expert Opinion piece, please contact editorial@automotiveworld.com
Published on Tuesday, August 16, 2011
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