Bentley Chief Warns US Tariffs May Impact Buyers
The potential impact of US tariffs has caught the attention of Bentley, with the luxury car manufacturer cautioning it may have to transfer additional costs to customers. Bentley’s chief executive, Frank-Steffen Walliser, laid out the challenges the brand faces amidst fluctuating demand and global political uncertainty during its recent financial results announcement.
Bentley Faces Pressure from US Tariffs Threat
During a press briefing, Walliser highlighted growing concerns about tariffs of up to 25% proposed by US President Donald Trump. Designed to encourage manufacturing within the United States, these duties could affect companies reliant on overseas facilities—Bentley’s production hub in Crewe, Cheshire, being a prime example.
Walliser stressed that while Bentley could not easily shift its manufacturing operations due to its branding and heritage, any increase in production costs caused by tariffs would likely result in higher prices for buyers.
“We are assessing different scenarios on how to handle it, but it would eventually be passed on to consumers,” stated Walliser.
A Decline in Profits Amid Chinese Market Weakness
These tariff challenges come at a time when Bentley is already facing financial pressures. The British carmaker, owned by Germany’s Volkswagen, reported a drop in operating profit to €373m (£314m) for 2024—down over a third from €589m the previous year.
Walliser remained optimistic, calling it a “positive year despite the headwinds,” but cited weakened demand from the Chinese market as the primary reason for falling profits. The slowdown in consumer spending in China, a crucial market for luxury brands, weighed heavily on sales of high-end goods, including premium vehicles like Bentleys.
Bentley’s finance boss Jan-Henrik Lafrentz expressed hope for stability in the Chinese market in 2025, stating, “We believe the demand will hopefully level out this year.”
Bentley’s Response to the Changing Market
Despite the challenges, Bentley is focusing on long-term profitability by shifting its strategy toward “value over volume.” According to Walliser, 70% of Bentley customers invest in lucrative bespoke options, with one buyer in 2024 requesting 3D-printed rose gold detailing for their car.
This bespoke approach allows Bentley to generate higher revenues per unit, even as total demand fluctuates. Last year, Bentley delivered 13,560 cars—though the company opted not to disclose the 2024 sales figures.
Adapting to an Electric Future
The British carmaker is also navigating the complexities of electrification in response to shifting consumer preferences and environmental policies. Bentley has delayed its first electric SUV to 2026, with deliveries expected in 2027. It also revised its commitment to phase out petrol-powered vehicles, extending the deadline to 2035 from the initially planned 2030.
Walliser admitted that previous expectations for electric vehicles might have been “a little bit too bullish,” as lower-than-expected global demand has impacted production timelines across the industry. However, Lafrentz reassured customers and stakeholders by stating Bentley’s goal to ensure its electric vehicles are as profitable as petrol and hybrid models remains on track.
The Wider Impact of US Tariffs Across the Luxury Auto Industry
Bentley is not alone in its facing potential tariffs. Volkswagen’s Audi brand has also indicated it is considering increasing prices to offset the impact of US duties, while carefully balancing such hikes with adjustments to production.
Bentley’s challenges underscore the volatile conditions within the luxury automobile sector—balancing heritage, pricing, customer demand, and political pressures at a global scale.
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