Chairman of Bentley weighs in on Brexit
Brexit – it’s all anyone is talking about these days, not least car manufacturers and experts. Investment in the UK car industry has already fallen significantly in the last 13 months due to fears of a no-deal Brexit. Many in the industry have called a no-deal Brexit the worst-case scenario, and boss of BMW, Harald Krüger, said it would be a “lose-lose” scenario if the UK were to walk away without a deal in October.
Brexit has “no upside”
Bentley has plenty of ambition for the years ahead and is aiming to have all-electric vehicles by 2025. However, Brexit looks to make progress more challenging: prices and input costs will likely rise, and while a trade deal with the USA might prove helpful when it comes to tariffs, Hallmark said Bentley “we're not banking on it.”
Bentley is somewhat protected by the effects of Brexit thanks to its small volumes and pricing power, however, Hallmark confirms that “any stoppage would be very, very costly.” As other UK car manufacturers suffer the impacts, the supplier system could be disrupted, ultimately affecting the brand.
Despite the concerns, Hallmark confirms that there is “absolutely no intent” for Bentley to relocate, citing its distinctive British heritage as the primary factor. Unfortunately, damage to the industry and their workforce of 4,000 in Crewe, “maybe a small price to pay politically” for the government to leave the EU.