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Bentley CEO warns car tariffs creating uncertainty

China

China

China

Bentley CEO warns car tariffs creating uncertainty

2025-04-25 13:26 Last Updated At:17:17

Bentley Motors' chief executive Frank-Steffen Walliser, at the ongoing Shanghai Auto Show, issued a stark warning about rising global automotive tariffs on Thursday, saying the marque has made preparations to navigate through the headwinds.

The 21st Shanghai International Automobile Industry Exhibition kicked off on Wednesday in east China's Shanghai. Themed "Embracing Innovation, Empowering the Future", the exhibition, also known as Auto Shanghai 2025, has attracted nearly 1,000 enterprises from 26 countries and regions, making it the largest in the event's history.

The British super luxury brand introduced its first hybrid model in 2018, marking the debut of the world's first luxury hybrid SUV. However, despite the transformation to EV in the auto industry, the company's fully electric vehicle is not expected until 2026.

The Volkswagen-owned marque sold just 10,643 vehicles globally in 2024, a 22 percent decline, making cautious electrification prudent. But Walliser explained that Bentley's 2027 timing aligns with luxury segment trends, noting premium buyers still prefer hybrids, adapting more slowly to electrification than mainstream consumers.

"We will introduce in 2026 and then come to the market in 2027, a fourth Bentley. That does not happen so often that a new Bentley arrives and the new model line arrives. And yes, this car will be fully electric. We see the segments develop different in different parts of the world with the acceptance of the electric cars. The Chinese market is, in volume for NEVs, definitely the leader on electric cars, maybe doubles the volume of new cars in comparison to other markets, but this is volume and premium. It's different in the luxury segment. The luxury segment is very much dominated by plug-in hybrids or ICE (internal combustion engine) only, and this is also what we offer to our customers. If we introduce the car, it will be really, really something new in this segment and shows again that we are amongst the leaders also in the technology space for introducing a fully electric car in the luxury segment. So we have a feeling that our timing is very good, as the luxury segment definitely behaves (in different way that) the market is different, and customer expectations is also different than in the volume sector, so it's not comparable," Walliser said.

There are three Bentley models on the market, including a full-size SUV Bentayga, a sedan Flying Spur and the Continental GT.

Walliser said the current tariff environment presents a "very difficult situation" for automakers, with customers delaying purchases due to unpredictable trade policies.

He said Bentley has prepared multiple scenarios to address varying tariff levels across markets, but admitted the uncertainty complicates long-term planning for the marque.

"This is a very good question, very very difficult situation for all manufacturers in the moment. Tariff is one thing, (what's) even more difficult is the unpredictability and the uncertainty in the markets. Customers we see just hold back with their decisions, whilst it's not clear will the tariffs stay or will they go away. So no decisions are made from our customers. Very difficult situation. We have different scenarios, we are prepared for it and then we will react according to the tariff levels we see in different parts of the world. But we have also different markets where we will then go make another approach to our customers. But honestly, a very unique situation known to the world, no one has seen that before. Definitely, we would have hoped, and we would have asked to stop it," Walliser said.

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

China and the United States should create a suitable environment for high-level exchanges between the two countries, Foreign Minister Wang Yi said at a press conference in Beijing on Sunday.

Wang highlighted the role that the heads of state of the two countries have played in China-U.S. relations in response to a media inquiry.

"It is heartening to see that the presidents of the two countries have led by example. By maintaining good interactions at the top level, they have provided important strategic safeguard for the China-U.S. relationship to improve and move forward, and they have brought the relationship back on an even keel after the ups and downs. This year is a 'big year' for China-U.S. relations. The agenda of high-level exchanges is already on the table. What the two sides need to do now is to make thorough preparations accordingly, create a suitable environment, manage the risks that do exist, and remove unnecessary disruptions," he said.

"China is always committed and open. It is critical that the U.S. side works in the same direction. I believe that when the two sides treat each other with sincerity and good faith, we will be able to lengthen the list of cooperation, and shorten the list of problems; we will be able to, under the strategic guidance of the two presidents, produce results that are satisfactory to both peoples, achieve consensus that is welcomed by the whole world, and make 2026 a landmark year of sound, steady and sustainable development of China-U.S. relations," the foreign minister said.

Wang answered questions of journalists from home and abroad on China's foreign policy and external relations at the press conference on the sidelines of the fourth session of the 14th National People's Congress (NPC).

The 14th NPC, China's top legislature, is holding its annual session from Thursday through March 12.

China, US should foster suitable environment for high-level exchanges: FM

China, US should foster suitable environment for high-level exchanges: FM

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