Rivals ready to attack Bentley : hope to emulate success of C-GT
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Rivals ready to attack Bentley: Automakers hope to emulate the success of Continental GT
BRADFORD WERNLE | Automotive News Europe
Posted Date: 3/15/05
CREWE, England -- There's a battle brewing among the world's most exclusive carmakers for some of the world's wealthiest customers, and Bentley claims it has fired the first shot.
Bentley's $156,000 Continental GT coupe has drawn buyers in a neglected niche. Bentley is following the coupe with the Continental Flying Spur sedan.
"We've created a segment at this new price point," says Adrian Hallmark, Bentley marketing chief.
Bentley calls it "exclusive luxury."
The segment Bentley has staked out sits in the territory between $150,000 and $200,000. That's above the top-end premium cars such as the Mercedes-Benz S-Class and BMW 7 Series sedans. But it's below such ultraluxury cars as the Rolls-Royce Phantom and Maybach sedans, which sell for more than $300,000. Bentley says this segment will grow from about 3,000 annual global sales in 2003 to 15,500 by 2008.
The small sales numbers are balanced by high profit margins. And the United States will be a key battlefield as entrants challenge Bentley.
Waiting list
Bentley sees an opportunity with the $170,000 Continental Flying Spur, which goes on sale in the United States in the second half of this year. Contrary to their counterparts in the rest of the world, U.S. customers tend to buy more sedans in this price range, Hallmark says. That's why Bentley has high hopes for the Continental Flying Spur, which is being billed as the world's fastest production sedan with a top speed of 195 mph.
Bentley already has defied analyst expectations with its two-door entry, the Continental GT, which also tops out at about 195 mph. The GT, already on sale for more than a year, competes with cars such as the Porsche 911 GT2 coupe, Aston Martin DB9 coupes, Ferrari 430 coupe and top Mercedes-Benz CL coupes.
The Continental GT has been selling so well that Bentley has a one-year waiting list.
Bentley sales have soared since the Continental GT went on sale in 2004. Bentley had global sales of 1,017 in 2003, the year before the Continental GT arrived. In 2004, Bentley global sales rocketed to 6,576.
Analysts believe Bentley may have hit on something by aiming above the S class and 7 series but below the Rolls-Royce Phantom and Bentley's Arnage sedans.
John Lawson, analyst for Citigroup Smith Barney in London, says, "It's been one of the anomalies of the market that there was a fairly empty segment between the top end of the most of the mainstream makers' ranges and the start of the supercar segment."
Too conservative?
Lawson thinks Bentley's estimate of 15,500 units by 2008 could be too conservative: "That latent demand may well be for anything between 10,000 and 25,000 units worldwide.
Bentley proved the demand is waiting for the supply of the right product. It stands to reason they won't be left to themselves with it forever."
The United States is by far the most important market for ultraluxury cars, accounting for half the world's sales in the upper segments. Bentley sold 437 cars in the United States in 2003 and 2,393 in 2004.
Customers in the Continental GT's segment typically have a net worth of $3 million and own about five cars. Customers in the ultraluxury segment typically have a net worth of $30 million and seven or more cars.
'Clear competitor'
The most obvious competitor at the moment is Mercedes-Benz, which takes issue with Bentley's claim to have discovered the niche. Mercedes-Benz has been selling the CL coupe since 1999.
CL-Class prices range from $94,000 to $118,000 for an AMG version. Prices include destination charges and the gas-guzzler tax on the AMG version. It's only the most expensive CLs that Bentley worries about.
"We have had the CL for many years, and we think it's a very clear competitor to the Continental GT," said Eva Guratzsch, a spokeswoman for DaimlerChrysler AG in Stuttgart. "We have been the market leader for many years."
Other brands, including BMW-owned Rolls-Royce, are studying entries. Some luxury brands, such as Aston Martin, Ferrari and Lamborghini, are taking aim at the two-door part of the sector.
Wild card
There's a wild card in the ultraluxury deck: The industry has been speculating on a fourth Porsche car. Industry insiders say the fourth Porsche car could be a four-seat vehicle designed to compete with the Continental Flying Spur.
Porsche has been mum except to say that a decision will be made soon.
If the segment is as promising as Bentley believes, Porsche will find it tough to resist.
Rolls-Royce CEO Ian Robertson says, "There are about 70,000 people in the world with net disposable assets of $30 million or more." And there are many more who can afford a car like the Continental Flying Spur.
With those numbers stable in the United States and Europe and growing rapidly in newly wealthy parts of Asia, car executives like Robertson believe the segment will grow.
BRADFORD WERNLE | Automotive News Europe
Posted Date: 3/15/05
CREWE, England -- There's a battle brewing among the world's most exclusive carmakers for some of the world's wealthiest customers, and Bentley claims it has fired the first shot.
Bentley's $156,000 Continental GT coupe has drawn buyers in a neglected niche. Bentley is following the coupe with the Continental Flying Spur sedan.
"We've created a segment at this new price point," says Adrian Hallmark, Bentley marketing chief.
Bentley calls it "exclusive luxury."
The segment Bentley has staked out sits in the territory between $150,000 and $200,000. That's above the top-end premium cars such as the Mercedes-Benz S-Class and BMW 7 Series sedans. But it's below such ultraluxury cars as the Rolls-Royce Phantom and Maybach sedans, which sell for more than $300,000. Bentley says this segment will grow from about 3,000 annual global sales in 2003 to 15,500 by 2008.
The small sales numbers are balanced by high profit margins. And the United States will be a key battlefield as entrants challenge Bentley.
Waiting list
Bentley sees an opportunity with the $170,000 Continental Flying Spur, which goes on sale in the United States in the second half of this year. Contrary to their counterparts in the rest of the world, U.S. customers tend to buy more sedans in this price range, Hallmark says. That's why Bentley has high hopes for the Continental Flying Spur, which is being billed as the world's fastest production sedan with a top speed of 195 mph.
Bentley already has defied analyst expectations with its two-door entry, the Continental GT, which also tops out at about 195 mph. The GT, already on sale for more than a year, competes with cars such as the Porsche 911 GT2 coupe, Aston Martin DB9 coupes, Ferrari 430 coupe and top Mercedes-Benz CL coupes.
The Continental GT has been selling so well that Bentley has a one-year waiting list.
Bentley sales have soared since the Continental GT went on sale in 2004. Bentley had global sales of 1,017 in 2003, the year before the Continental GT arrived. In 2004, Bentley global sales rocketed to 6,576.
Analysts believe Bentley may have hit on something by aiming above the S class and 7 series but below the Rolls-Royce Phantom and Bentley's Arnage sedans.
John Lawson, analyst for Citigroup Smith Barney in London, says, "It's been one of the anomalies of the market that there was a fairly empty segment between the top end of the most of the mainstream makers' ranges and the start of the supercar segment."
Too conservative?
Lawson thinks Bentley's estimate of 15,500 units by 2008 could be too conservative: "That latent demand may well be for anything between 10,000 and 25,000 units worldwide.
Bentley proved the demand is waiting for the supply of the right product. It stands to reason they won't be left to themselves with it forever."
The United States is by far the most important market for ultraluxury cars, accounting for half the world's sales in the upper segments. Bentley sold 437 cars in the United States in 2003 and 2,393 in 2004.
Customers in the Continental GT's segment typically have a net worth of $3 million and own about five cars. Customers in the ultraluxury segment typically have a net worth of $30 million and seven or more cars.
'Clear competitor'
The most obvious competitor at the moment is Mercedes-Benz, which takes issue with Bentley's claim to have discovered the niche. Mercedes-Benz has been selling the CL coupe since 1999.
CL-Class prices range from $94,000 to $118,000 for an AMG version. Prices include destination charges and the gas-guzzler tax on the AMG version. It's only the most expensive CLs that Bentley worries about.
"We have had the CL for many years, and we think it's a very clear competitor to the Continental GT," said Eva Guratzsch, a spokeswoman for DaimlerChrysler AG in Stuttgart. "We have been the market leader for many years."
Other brands, including BMW-owned Rolls-Royce, are studying entries. Some luxury brands, such as Aston Martin, Ferrari and Lamborghini, are taking aim at the two-door part of the sector.
Wild card
There's a wild card in the ultraluxury deck: The industry has been speculating on a fourth Porsche car. Industry insiders say the fourth Porsche car could be a four-seat vehicle designed to compete with the Continental Flying Spur.
Porsche has been mum except to say that a decision will be made soon.
If the segment is as promising as Bentley believes, Porsche will find it tough to resist.
Rolls-Royce CEO Ian Robertson says, "There are about 70,000 people in the world with net disposable assets of $30 million or more." And there are many more who can afford a car like the Continental Flying Spur.
With those numbers stable in the United States and Europe and growing rapidly in newly wealthy parts of Asia, car executives like Robertson believe the segment will grow.
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These sure are some great cars. And hopefully after 5-6 years I could get a nice used one for 70grand(wishful thinking, but it could be possible).
I knew the Continental GT was going to be a hit when I first saw them in music videos with 24in rims. Once the big rims are put on any car, you better believe people will be scooping them up like ice cream.
Def. have to commend VW for this. Its a real good look for them. However the Phaeton is not. But I'll leave that for another thread.
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I knew the Continental GT was going to be a hit when I first saw them in music videos with 24in rims. Once the big rims are put on any car, you better believe people will be scooping them up like ice cream.
Def. have to commend VW for this. Its a real good look for them. However the Phaeton is not. But I'll leave that for another thread.
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Originally Posted by magneto112
The most obvious competitor at the moment is Mercedes-Benz, which takes issue with Bentley's claim to have discovered the niche. Mercedes-Benz has been selling the CL coupe since 1999.
CL-Class prices range from $94,000 to $118,000 for an AMG version. Prices include destination charges and the gas-guzzler tax on the AMG version. It's only the most expensive CLs that Bentley worries about.
"We have had the CL for many years, and we think it's a very clear competitor to the Continental GT," said Eva Guratzsch, a spokeswoman for DaimlerChrysler AG in Stuttgart. "We have been the market leader for many years."
CL-Class prices range from $94,000 to $118,000 for an AMG version. Prices include destination charges and the gas-guzzler tax on the AMG version. It's only the most expensive CLs that Bentley worries about.
"We have had the CL for many years, and we think it's a very clear competitor to the Continental GT," said Eva Guratzsch, a spokeswoman for DaimlerChrysler AG in Stuttgart. "We have been the market leader for many years."
Actually, they negelected to mention the ultra-high performance CL65 AMG which is approximately $180,000. That is pretty much right at the price point as the Bentley and offers a tad more hp? (i forgot the output numbers on the GT).
What would you guys take between the CL65 and the Bentley C-GT? I'm thinking most people would take the C-GT for that money though.
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Originally Posted by Faraaz23
Actually, they negelected to mention the ultra-high performance CL65 AMG which is approximately $180,000. That is pretty much right at the price point as the Bentley and offers a tad more hp? (i forgot the output numbers on the GT).
What would you guys take between the CL65 and the Bentley C-GT? I'm thinking most people would take the C-GT for that money though.
What would you guys take between the CL65 and the Bentley C-GT? I'm thinking most people would take the C-GT for that money though.
At ~ $180k, I think the CL65 is way overpriced compared to the CL500/55/600.
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Originally Posted by Faraaz23
Actually, they negelected to mention the ultra-high performance CL65 AMG which is approximately $180,000. That is pretty much right at the price point as the Bentley and offers a tad more hp? (i forgot the output numbers on the GT).
What would you guys take between the CL65 and the Bentley C-GT? I'm thinking most people would take the C-GT for that money though.
What would you guys take between the CL65 and the Bentley C-GT? I'm thinking most people would take the C-GT for that money though.
I'd take the C-GT in a heartbeat over the CL65. Both are some awsomely great looking cars(CL-class being my favorite MB to date), but I'll take the C-GT based on exclusivity alone. Plus the CL-class is at the end of its life span.
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