1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:07,280 --> 00:00:08,360 Speaker 2: Hi, let bring in Bloomberg. 3 00:00:08,400 --> 00:00:11,399 Speaker 3: Hannah Elliott our luxury correspondent normally on the Left Coast, 4 00:00:11,520 --> 00:00:14,480 Speaker 3: and she is also my co host on the podcast 5 00:00:14,480 --> 00:00:17,880 Speaker 3: Bloomberg Hot Pursuit. Fresh off the global debut of Bentley's 6 00:00:17,920 --> 00:00:21,360 Speaker 3: brand new super Sports, and this thing is a shocker. 7 00:00:21,440 --> 00:00:24,680 Speaker 3: It's lighter, it's louder, it's rear wheel drive, gas only 8 00:00:25,040 --> 00:00:27,840 Speaker 3: a bruiser from a company that has been adding weight, 9 00:00:28,280 --> 00:00:31,440 Speaker 3: all wheel drive and leaning into electrification. So, Hannah, you 10 00:00:31,480 --> 00:00:34,520 Speaker 3: were there last night. What did Bentley just unleash? 11 00:00:34,640 --> 00:00:37,920 Speaker 1: This is a big tease about what we can expect 12 00:00:37,920 --> 00:00:40,200 Speaker 1: to see more from Bentley. I think, of course, it's 13 00:00:40,200 --> 00:00:43,800 Speaker 1: been about a year since Frank Wallaser, the CEO, joined 14 00:00:43,840 --> 00:00:47,520 Speaker 1: the company. As you know, Frank came from Porsche Porsche Motorsport, 15 00:00:47,520 --> 00:00:49,360 Speaker 1: where he was the master of mind behind a lot 16 00:00:49,360 --> 00:00:52,240 Speaker 1: of race wins. This is the first car that really 17 00:00:52,320 --> 00:00:56,160 Speaker 1: has Frank's thumbprint on it. It's a big indicator that 18 00:00:56,520 --> 00:00:57,800 Speaker 1: Bentley is doubling down. 19 00:00:58,160 --> 00:01:00,640 Speaker 2: It's going to get a lot more boy racer. I 20 00:01:00,920 --> 00:01:02,040 Speaker 2: think I'm excited. 21 00:01:02,040 --> 00:01:04,600 Speaker 3: As a boy racer myself, I'm very excited about that. 22 00:01:04,840 --> 00:01:06,560 Speaker 2: The man behind the madness is with him. 23 00:01:06,600 --> 00:01:11,480 Speaker 3: Frank Stefan Wallaser is Bentley's relatively new CEO. He's been 24 00:01:11,520 --> 00:01:13,480 Speaker 3: on the job a little over a year after a 25 00:01:13,560 --> 00:01:16,320 Speaker 3: storied run at Portia where he didn't just win races, 26 00:01:16,400 --> 00:01:20,440 Speaker 3: but he developed the nine to eighteen Spider supercar, which 27 00:01:20,480 --> 00:01:22,080 Speaker 3: is one that we were looking at in the editorial 28 00:01:22,120 --> 00:01:26,760 Speaker 3: meeting yesterday and all sort of in awe of He 29 00:01:27,440 --> 00:01:29,880 Speaker 3: joins us on set. Hannah dragged you in here after 30 00:01:29,920 --> 00:01:33,000 Speaker 3: the debut, so thanks so much for joining us. What 31 00:01:33,319 --> 00:01:36,759 Speaker 3: is happening? Are you bringing Bentley back to its driver 32 00:01:37,000 --> 00:01:37,800 Speaker 3: car roots? 33 00:01:38,920 --> 00:01:43,000 Speaker 4: Yeah, definitely. I think that described it pretty well. Bentley 34 00:01:43,080 --> 00:01:47,120 Speaker 4: is and was always the driver's brand. And I'm choking 35 00:01:47,120 --> 00:01:50,240 Speaker 4: a little bit because our club of fans is called 36 00:01:50,920 --> 00:01:56,560 Speaker 4: Bentley's Drivers Club. So ye to underline this and needs 37 00:01:56,560 --> 00:01:59,160 Speaker 4: the rite product for it, and we feel it's really 38 00:01:59,160 --> 00:02:02,920 Speaker 4: beneficial forward brand if you can drive it, and the 39 00:02:02,920 --> 00:02:05,920 Speaker 4: thrill of driving is a core of our brand and 40 00:02:05,920 --> 00:02:08,280 Speaker 4: of our DNA and it was for many, many years, 41 00:02:08,680 --> 00:02:11,120 Speaker 4: and we said, yeah, let's let's make the products that 42 00:02:11,360 --> 00:02:14,680 Speaker 4: even underline it more. And we had some fun by 43 00:02:15,120 --> 00:02:17,960 Speaker 4: putting this car together and developing it and I bring 44 00:02:18,120 --> 00:02:18,760 Speaker 4: it to life. 45 00:02:18,840 --> 00:02:21,400 Speaker 3: I remember when Hannah last year at some point did 46 00:02:21,440 --> 00:02:24,720 Speaker 3: a story where she went out driving with you in 47 00:02:25,840 --> 00:02:30,520 Speaker 3: a condinal GT speed right, and I remember saying, like, 48 00:02:30,960 --> 00:02:33,880 Speaker 3: everybody is watching Frank now and they're going to wait 49 00:02:33,919 --> 00:02:35,840 Speaker 3: for the first car that he develops because of your 50 00:02:35,880 --> 00:02:39,320 Speaker 3: track record at Porsche. Right, is this the first vehicle 51 00:02:39,360 --> 00:02:41,000 Speaker 3: that has your your imprint on it? 52 00:02:41,120 --> 00:02:41,320 Speaker 1: Yeah? 53 00:02:41,360 --> 00:02:45,239 Speaker 4: Yeah, definitely. Well the story started honestly at day two 54 00:02:46,320 --> 00:02:49,040 Speaker 4: when I joined Bentley and we had what we call 55 00:02:49,120 --> 00:02:52,840 Speaker 4: the product ground table. That is an I would say 56 00:02:53,720 --> 00:02:59,080 Speaker 4: of official meetings gathering of engineer, sales, marketing, design, finance 57 00:03:00,040 --> 00:03:03,560 Speaker 4: when we talk new ideas in an open space normally 58 00:03:03,560 --> 00:03:07,120 Speaker 4: in the evening. Takes sometimes hours and it's very open. 59 00:03:07,160 --> 00:03:09,639 Speaker 4: And this was the second day and I joined it 60 00:03:09,680 --> 00:03:11,880 Speaker 4: and there was the idea around what can we do 61 00:03:12,000 --> 00:03:14,520 Speaker 4: un continental and I said, yay, let's go for it, 62 00:03:14,560 --> 00:03:18,600 Speaker 4: but make it please as extreme as possible. And I 63 00:03:18,639 --> 00:03:21,840 Speaker 4: brought a little bit of my experience in. But the 64 00:03:21,919 --> 00:03:25,960 Speaker 4: interesting thing for me was in Bentley it was always there. 65 00:03:26,560 --> 00:03:28,960 Speaker 4: I just really had to ignite it and then people 66 00:03:29,000 --> 00:03:31,480 Speaker 4: immediately know what to do and what to go for, 67 00:03:31,560 --> 00:03:36,640 Speaker 4: and they really went above and beyond timing wise, content wise, 68 00:03:36,760 --> 00:03:41,320 Speaker 4: what's possible engineering capabilities really great through the whole company. 69 00:03:41,400 --> 00:03:44,280 Speaker 4: So it really defined not only a new carpitals a 70 00:03:44,320 --> 00:03:45,520 Speaker 4: new spirit in the company. 71 00:03:45,800 --> 00:03:48,120 Speaker 1: Frank, I know we've made so much about this as 72 00:03:48,120 --> 00:03:51,400 Speaker 1: a VA, and especially that this is a non hybrid vehicle, 73 00:03:51,440 --> 00:03:54,040 Speaker 1: but I also know you guys have some electric vehicles 74 00:03:54,200 --> 00:03:57,040 Speaker 1: in the pipeline as well. So what's the balance at 75 00:03:57,040 --> 00:03:59,960 Speaker 1: Bentley going to look like between evs and then internal 76 00:04:00,000 --> 00:04:00,960 Speaker 1: combustion in the future. 77 00:04:01,760 --> 00:04:05,080 Speaker 4: Well, looking looking at regulation, looking at how the market 78 00:04:05,120 --> 00:04:08,000 Speaker 4: splits up, I think it's it's even more important than 79 00:04:08,040 --> 00:04:10,920 Speaker 4: it was in the past to offer a balanced portfolio. 80 00:04:11,880 --> 00:04:16,000 Speaker 4: So I'm very proud of One of our next announcements will. 81 00:04:15,800 --> 00:04:18,080 Speaker 2: Be the next Bentley. 82 00:04:18,160 --> 00:04:22,480 Speaker 4: So we add another car, is what is in general 83 00:04:22,520 --> 00:04:25,680 Speaker 4: great news, and yes it will be electric, and so 84 00:04:25,760 --> 00:04:29,160 Speaker 4: customers of Bentley have the choice between plug in hybrids, 85 00:04:29,400 --> 00:04:33,320 Speaker 4: pure ice engines and an electric car. And also the 86 00:04:33,360 --> 00:04:38,120 Speaker 4: electric car will be a driver's car, beautiful designed tech 87 00:04:38,160 --> 00:04:42,880 Speaker 4: wise on a next generation, So a big choice for 88 00:04:42,960 --> 00:04:46,280 Speaker 4: our customers and I'm sure it will bring customers to 89 00:04:46,320 --> 00:04:48,839 Speaker 4: the Bentley brand that would have never considered us. 90 00:04:49,040 --> 00:04:51,680 Speaker 1: You know, I'm really curious about that. As we move 91 00:04:51,760 --> 00:04:56,520 Speaker 1: deeper into tech, how does Bentley still define luxury in 92 00:04:56,600 --> 00:04:59,839 Speaker 1: this space where you're going, Okay, we're going racing seems like, 93 00:05:00,120 --> 00:05:03,200 Speaker 1: and we're doing tech. Where does the luxury fit into that. 94 00:05:04,120 --> 00:05:09,479 Speaker 4: I think luxury comes with many aspects. One is definitely 95 00:05:09,520 --> 00:05:12,680 Speaker 4: the engineering and the craftsmanship behind it what we can offer. 96 00:05:12,760 --> 00:05:15,440 Speaker 4: And this is maybe also a sweet spot for supersports 97 00:05:15,839 --> 00:05:18,159 Speaker 4: because it offers you really the thrill of driving. And 98 00:05:18,200 --> 00:05:20,240 Speaker 4: I had the chance to drive the car and racetracks 99 00:05:20,279 --> 00:05:24,960 Speaker 4: in Spain. It's really a difference if you drive that car. 100 00:05:26,000 --> 00:05:28,200 Speaker 4: But it comes with all the craftsmanship, with the leather, 101 00:05:28,320 --> 00:05:31,320 Speaker 4: with the quality with a Bentley, with the reliability of 102 00:05:31,320 --> 00:05:33,280 Speaker 4: a Bentley, and that's a sweet. 103 00:05:33,000 --> 00:05:34,600 Speaker 2: Spot in the market. 104 00:05:34,960 --> 00:05:39,400 Speaker 4: And tech gets more and more important, but it has 105 00:05:39,480 --> 00:05:42,640 Speaker 4: not to be mixed up with that. And we see 106 00:05:42,680 --> 00:05:46,880 Speaker 4: some especially Chinese but also US tech players, but they 107 00:05:46,880 --> 00:05:49,479 Speaker 4: are tech offers, they are not luxury brand, and I 108 00:05:49,480 --> 00:05:51,600 Speaker 4: think that's the difference. It is sometimes mixed up, and 109 00:05:51,640 --> 00:05:53,680 Speaker 4: we have we have a very clear position on the 110 00:05:53,720 --> 00:05:57,520 Speaker 4: luxury side sport, the interpretation of the luxury side, but 111 00:05:57,560 --> 00:06:00,599 Speaker 4: we will not chase down our colleagues from from Porgio 112 00:06:00,680 --> 00:06:03,800 Speaker 4: Lamborghini for lap times were in a different league. 113 00:06:04,480 --> 00:06:07,080 Speaker 2: Frankie, grown up. I love that. 114 00:06:07,160 --> 00:06:11,120 Speaker 5: So you've also had to relocate to England where the 115 00:06:11,160 --> 00:06:13,520 Speaker 5: bulk of the Bentley's are being assembled. 116 00:06:13,920 --> 00:06:15,640 Speaker 2: There were comments from the Ford. 117 00:06:15,440 --> 00:06:18,320 Speaker 5: CEO saying that he had thousands of mechanic job opens 118 00:06:18,320 --> 00:06:21,440 Speaker 5: that they couldn't fill. Obviously a very different offering for 119 00:06:21,440 --> 00:06:22,760 Speaker 5: the people who are going to be working on a 120 00:06:22,760 --> 00:06:26,320 Speaker 5: Bentley versus a Ford in a different region America versus England. 121 00:06:26,320 --> 00:06:28,320 Speaker 5: But how difficult is it in this very moment where 122 00:06:28,320 --> 00:06:30,719 Speaker 5: the UK is facing some of those pressures too of 123 00:06:30,760 --> 00:06:33,720 Speaker 5: getting the skilled labor that you need to assemble these cars. 124 00:06:36,360 --> 00:06:38,640 Speaker 4: We are in a very good position. We are recognized 125 00:06:38,640 --> 00:06:40,560 Speaker 4: as one of the top employers in the UK. We 126 00:06:40,640 --> 00:06:44,000 Speaker 4: are still very attractive. I think the offer the packages 127 00:06:44,080 --> 00:06:47,400 Speaker 4: we have for our for our employees, for our workforce 128 00:06:47,920 --> 00:06:51,679 Speaker 4: is really attractive. With a lot of people that working 129 00:06:51,720 --> 00:06:56,440 Speaker 4: there a second and search generation, so it's very clear 130 00:06:56,440 --> 00:07:01,120 Speaker 4: for family members they work in Bentley and or high 131 00:07:01,160 --> 00:07:04,880 Speaker 4: loyalty of our workforce, and I think this brings us 132 00:07:04,920 --> 00:07:08,240 Speaker 4: in a good position for sure. You're also part of 133 00:07:10,480 --> 00:07:12,600 Speaker 4: to get the best talents. Then on the tech side 134 00:07:12,640 --> 00:07:15,480 Speaker 4: engineering site in the country. But at the moment, I 135 00:07:15,520 --> 00:07:19,600 Speaker 4: would say, it's not really a problem. We're well positioned 136 00:07:19,640 --> 00:07:21,240 Speaker 4: and works works pretty well. 137 00:07:21,320 --> 00:07:24,400 Speaker 3: What about the rare earths and the you know, the 138 00:07:24,440 --> 00:07:27,320 Speaker 3: micro chips ever since the supply chain, the back of 139 00:07:27,680 --> 00:07:29,679 Speaker 3: the COVID crisis. 140 00:07:29,080 --> 00:07:31,240 Speaker 2: And now the trade war with China. 141 00:07:31,280 --> 00:07:34,400 Speaker 3: I was asking Mark Royce of General Motors, I've see 142 00:07:34,400 --> 00:07:36,120 Speaker 3: a very different car maker. 143 00:07:35,840 --> 00:07:39,520 Speaker 4: But same seam in conductors well exactly, So. 144 00:07:39,440 --> 00:07:41,920 Speaker 3: He was saying, what they really try and do, among 145 00:07:42,000 --> 00:07:45,400 Speaker 3: other things, is engineer some of that stuff out so 146 00:07:45,440 --> 00:07:48,600 Speaker 3: that they aren't reliant on it. Is it the same 147 00:07:48,640 --> 00:07:51,200 Speaker 3: at Bentley, at Porsche? In the Folkswagen group, it's. 148 00:07:51,080 --> 00:07:53,160 Speaker 4: Well, it's it's considered to be. In the Folkswagen Group 149 00:07:53,200 --> 00:07:57,080 Speaker 4: partly you can engineer it out rare earth, but not 150 00:07:57,160 --> 00:07:59,720 Speaker 4: everything comes within advantage, so you have to balance it. 151 00:07:59,800 --> 00:08:03,960 Speaker 4: On the semiconductor side, for sure, Folkswagen has a big 152 00:08:04,000 --> 00:08:09,000 Speaker 4: network and after the post COVID semiconductor crisis, a lot 153 00:08:09,040 --> 00:08:11,600 Speaker 4: of processes within the Folkswagen Group have been set up 154 00:08:12,160 --> 00:08:14,800 Speaker 4: to respond to such a situation. And this is what 155 00:08:15,000 --> 00:08:21,000 Speaker 4: now happened. And in comparison to the last chip supply shortage, 156 00:08:21,040 --> 00:08:24,120 Speaker 4: and now it was politically because someone said no and 157 00:08:24,160 --> 00:08:27,119 Speaker 4: then it stops immediately. It was not a factory or 158 00:08:27,320 --> 00:08:31,240 Speaker 4: shortage of any pre material, but the processes that have 159 00:08:31,320 --> 00:08:34,680 Speaker 4: been set up brought us in the position to within 160 00:08:34,840 --> 00:08:38,840 Speaker 4: hours we knew which cars, which factory, which parts, and 161 00:08:38,880 --> 00:08:43,800 Speaker 4: then you could immediately respond. It was less complex semiconductors, 162 00:08:43,800 --> 00:08:47,160 Speaker 4: so you could work around and so far we manage everything, 163 00:08:47,240 --> 00:08:50,240 Speaker 4: so we have no shortage, we have no impact on manufacturing, 164 00:08:50,800 --> 00:08:54,040 Speaker 4: and it looks like it's sorted now with supplies is 165 00:08:54,120 --> 00:08:58,479 Speaker 4: coming back again. So it just showed also how resilient 166 00:08:59,320 --> 00:09:03,040 Speaker 4: Volkswagen total wass and for sure in the Folkshvarn group 167 00:09:03,600 --> 00:09:07,320 Speaker 4: there's a high likability that if there is a semi 168 00:09:07,360 --> 00:09:10,760 Speaker 4: conductor available, Bentley will get it, just on the contribution 169 00:09:10,840 --> 00:09:11,400 Speaker 4: of our cost. 170 00:09:11,440 --> 00:09:13,920 Speaker 3: Of course, of course I wonder about the effect of 171 00:09:13,960 --> 00:09:17,640 Speaker 3: tariffs because I've noticed kind of a split among luxury 172 00:09:17,640 --> 00:09:20,720 Speaker 3: car makers. When I talked to Benedetto Vina, Okay, it 173 00:09:20,720 --> 00:09:24,080 Speaker 3: doesn't matter so much to Ferrari buyers. The same is 174 00:09:24,200 --> 00:09:28,559 Speaker 3: true when we talk with Steve Winkleman at Lamborghini. 175 00:09:28,679 --> 00:09:30,440 Speaker 2: Although you know they. 176 00:09:30,280 --> 00:09:33,080 Speaker 3: Are going to have to raise prices and it's maybe 177 00:09:33,080 --> 00:09:35,560 Speaker 3: a little more sensitive. Meanwhile, at asks Martin, it's a 178 00:09:35,559 --> 00:09:39,319 Speaker 3: real problem, right, maybe because their prices are too high 179 00:09:39,360 --> 00:09:42,200 Speaker 3: to begin with, But what is it like for Bentley 180 00:09:42,200 --> 00:09:44,600 Speaker 3: buyers and how are you dealing with passing those prices on. 181 00:09:44,800 --> 00:09:49,520 Speaker 4: It's well, we looked and you react on your pricing 182 00:09:49,640 --> 00:09:52,320 Speaker 4: site every model year, what we did with the twenty 183 00:09:52,360 --> 00:09:56,120 Speaker 4: six model year, and I think we can. We can 184 00:09:56,160 --> 00:09:59,720 Speaker 4: deal it at the moment, but that would consider in 185 00:10:00,000 --> 00:10:04,080 Speaker 4: general the market conditions are have the bigger impact than 186 00:10:04,120 --> 00:10:08,079 Speaker 4: the tariff impact. UK and US have a very very 187 00:10:08,120 --> 00:10:10,960 Speaker 4: good teriff agreement, so there's no complaints. 188 00:10:11,000 --> 00:10:11,880 Speaker 2: It's the best in the world. 189 00:10:12,559 --> 00:10:15,480 Speaker 4: To be clear, it's seven and a half more so 190 00:10:15,559 --> 00:10:17,360 Speaker 4: it's ten in totally. It used to be two and 191 00:10:17,360 --> 00:10:19,520 Speaker 4: a half, so it's seven and a half more. Definitely 192 00:10:19,720 --> 00:10:22,640 Speaker 4: something we can handle. We don't see really an impact 193 00:10:22,880 --> 00:10:29,840 Speaker 4: on it. But the market is not as as good 194 00:10:29,840 --> 00:10:32,520 Speaker 4: as it used to be. I think it needs a 195 00:10:32,559 --> 00:10:34,920 Speaker 4: little bit more stability again in the US and a 196 00:10:34,920 --> 00:10:38,200 Speaker 4: little bit better outlook. You've just talked on the development 197 00:10:38,240 --> 00:10:39,000 Speaker 4: of the stock market. 198 00:10:39,000 --> 00:10:43,360 Speaker 2: That does not help. But does the Ray cuts matter 199 00:10:43,400 --> 00:10:44,320 Speaker 2: to Bentley? 200 00:10:45,880 --> 00:10:49,560 Speaker 4: Yeah, we'll see. At the moment, it's a lot about 201 00:10:49,600 --> 00:10:52,559 Speaker 4: the sentiment. All Right, I'm in good mood. It will 202 00:10:52,559 --> 00:10:53,160 Speaker 4: come back and. 203 00:10:54,200 --> 00:10:56,079 Speaker 2: It will work. Everything is going to be okay. 204 00:10:56,200 --> 00:11:00,520 Speaker 3: Yes, Strength and Molisher, they're the CEO of Bentley, along 205 00:11:00,559 --> 00:11:03,480 Speaker 3: with my cos I'm Bloomberg. Hot Pursuit Hannah Elliott for 206 00:11:03,559 --> 00:11:06,400 Speaker 3: all things autos. Listen to Hot Pursuit, which can be 207 00:11:06,440 --> 00:11:10,199 Speaker 3: found wherever you get your podcasts. And after this show, 208 00:11:10,280 --> 00:11:12,520 Speaker 3: we're gonna take Frank into the studio and we're gonna 209 00:11:12,520 --> 00:11:16,120 Speaker 3: sit him down and talk to him about all things Bentley, 210 00:11:16,320 --> 00:11:18,000 Speaker 3: and it's gonna be fantastic.