WEBVTT - Bentley Motors Chairman & CEO Frank-Steffen Walliser Talks

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>We're going to stay in Monterey and bring in Frank

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<v Speaker 2>Stephen Wallacer Bentley Motors chairman and CEO. He joins us

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<v Speaker 2>from the Quail and Frank, great to have you. Before

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<v Speaker 2>we get to the turmoil the tariffs, the wealth effect,

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<v Speaker 2>I want to talk about that orange Bentaga next to you.

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<v Speaker 2>Is that the new Bentaga Speed and what kind of

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<v Speaker 2>demand do you expect?

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<v Speaker 1>Yes, exactly, that's the Bentaga Speed. So good morning from Monterrey.

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<v Speaker 1>That's our latest version of the of the Bentaga and

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<v Speaker 1>ice only engine six hundred and fifty horses. Showed it

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<v Speaker 1>just a couple of weeks ago in Montana. Very very

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<v Speaker 1>good feedback from media so far. Customers to early. They

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<v Speaker 1>will get in the car beginning of next year, end

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<v Speaker 1>of this year, maybe the first, but we see it's

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<v Speaker 1>a car that that really is asked for by the markets.

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<v Speaker 2>We've seen. I mean, the markets are on fire right

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<v Speaker 2>if you look at equities, if you look at bitcoin,

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<v Speaker 2>the wealth effect must be strong and the pull forward

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<v Speaker 2>effect has been great as well. What kind of demand

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<v Speaker 2>are you seeing from customers.

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<v Speaker 1>Well, it's different in different parts of the world. US

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<v Speaker 1>is kind of stabilizing, I would say it's too early

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<v Speaker 1>to really judge it because it's always long term. You

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<v Speaker 1>have seasonality inside, you have depending for shures on what

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<v Speaker 1>you offering cars BEVNTEGA Speed will definitely give a momentum

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<v Speaker 1>on the sales. What do we expect new Continental coming

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<v Speaker 1>now with the high power not the ultra high power

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<v Speaker 1>version and this is very very well received in the market,

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<v Speaker 1>so we expect why shipping the cars in the third

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<v Speaker 1>quarter also another momentum for our sales figures.

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<v Speaker 2>For the most part, Bentley's, I guess Bentley's can only

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<v Speaker 2>be produced in Crewe, right If you're buying a Bentley,

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<v Speaker 2>you're basically buying piece of that factory. That craftsmanship, those

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<v Speaker 2>artisans is what you're paying the premium for. So there's

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<v Speaker 2>no way you can really move production anywhere else, is there.

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<v Speaker 1>No? And it's also for sure it's not intended because

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<v Speaker 1>part of the excitement is you have a British kind

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<v Speaker 1>the British guy has to come from the UK. It's

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<v Speaker 1>like as we's watch, very very clear. But with the

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<v Speaker 1>agreement between UK and US, I feel we're in a

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<v Speaker 1>very good position. We have approximately seven and a half

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<v Speaker 1>percent higher tariff than it was before, So we don't

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<v Speaker 1>expect that this has a big impact on our business.

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<v Speaker 1>In the business in general, it's more the uncertainty, I

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<v Speaker 1>would say, because also we did not raise any prices

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<v Speaker 1>so far, nothing is adjusted, so we expect just business

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<v Speaker 1>going on.

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<v Speaker 2>So exactly, I mean, the UK has a special deal

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<v Speaker 2>with the US and auto exports a flat ten percent

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<v Speaker 2>tariff to be two and a half. You haven't raised prices,

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<v Speaker 2>you say, have you been able to take some price

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<v Speaker 2>from your suppliers, have you been able to get some

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<v Speaker 2>padding there?

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<v Speaker 1>No, at the moment, it's all too early because we

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<v Speaker 1>have carefully really watched the markets, what's happening there, what's

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<v Speaker 1>happening on the pricing site, supplies and different But no,

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<v Speaker 1>we did not take any action there.

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<v Speaker 2>I'm curious, Frank, if customers are waiting for new generations

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<v Speaker 2>of cars that come from you. You have, you know,

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<v Speaker 2>personally a great history out of Germany, out of Stuttgart,

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<v Speaker 2>and there's pretty high expectations for what you can do

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<v Speaker 2>with this brand. A lot of the vehicles you're selling

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<v Speaker 2>are fantastic cars obviously, really works of art and engineering masterpieces.

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<v Speaker 2>But do you see anybody waiting for the first wallacer

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<v Speaker 2>cars to come out of Bentley.

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<v Speaker 1>If you want to call it like that. Yes, people

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<v Speaker 1>are already asking and waiting for it, and I have

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<v Speaker 1>to ask for a little bit of more patients. But

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<v Speaker 1>it's on the way. The first car will come, and

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<v Speaker 1>we're already talking with customers, not with media, but with customers.

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<v Speaker 1>We are talking about some ideas we haven't projects we

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<v Speaker 1>have started, and there's a lot of excitement. I can

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<v Speaker 1>tell you, very very positive feedback.

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<v Speaker 2>I know you're there with my good friend Hannah Elliott.

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<v Speaker 2>She's my co host on our podcast Bloomberg Hot Pursuit,

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<v Speaker 2>and she and I recently went to Lamar. It was exciting,

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<v Speaker 2>and a lot more manufacturers are getting involved, not just

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<v Speaker 2>in world endurance car racing, but in motorsport in general.

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<v Speaker 2>It's become really important, I think, to the car buying public,

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<v Speaker 2>especially at the level where you're playing. Does Bentley have

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<v Speaker 2>any aspirations to get involved, to get back into you know,

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<v Speaker 2>especially the Lamal series. Is I think of Bentley when

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<v Speaker 2>I think of that series.

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<v Speaker 1>Well, Bentley has in general very wide and very long history,

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<v Speaker 1>especially with Lemont more than hundred years involved their many

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<v Speaker 1>many famous victories back in the twenties, but then also

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<v Speaker 1>the famous victory in two thousand and three when the

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<v Speaker 1>brand was kind of relaunched and got more established by

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<v Speaker 1>itself split with the siblings. So there's a rich heritage,

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<v Speaker 1>and for sure motorsport always played an important role in it.

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<v Speaker 1>Un As you say, more and more com manufacturers are

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<v Speaker 1>entering and motorsport is a very important part also of

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<v Speaker 1>the brand image of a company, and that fits for

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<v Speaker 1>sure also to Bentley. On the other hand, we have

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<v Speaker 1>to make business decisions we have. It's all about also

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<v Speaker 1>timing to get the right timing to enter motorsport, because

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<v Speaker 1>it's also clear if you have fifteen brands going to Lemon,

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<v Speaker 1>you're number sixteen. You share everything with fifteen others. So

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<v Speaker 1>when it's the right timing, when it's the right technology,

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<v Speaker 1>and also you need serious money to raise in Lemont,

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<v Speaker 1>and this equation has to be solved. And then we'll see.

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<v Speaker 1>We have no plans for the moment, but it's not

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<v Speaker 1>that we say no, we would never talk on something

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<v Speaker 1>like that.

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<v Speaker 2>All right, well, we look forward to it, Frank, and

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<v Speaker 2>I hope you have a fantastic weekend at Monterey Carr

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<v Speaker 2>week at the Quail Now and Pebble Beach Leader, Frank

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<v Speaker 2>Stephen Wallacer, Bentley Motors Chairman and CEO