NAIAS Speeches - Dr Franz-Josef Paefgen & Adrian Hallmark

Dr Franz-Josef Paefgen, Chairman & Chief Executive
Bentley Motors
North American International Auto Show, Detroit 2003
Opening Address

Good afternoon and welcome to Bentley.

We just wanted to bring a little sunshine to this cold Detroit winter! What an experience that was. But, despite being a beautiful, fast luxury Grand Tourer, the new Continental GT also will be pivotal to Bentley as a business.

Our market will change significantly over the next three years, new competition in the high luxury sector means that our existing model strategy has to be continuously improved to maintain the loyalty that we enjoy today, from our current customers.

But this change also provides an additional opportunity, and Bentley is now set to pioneer a new niche and attract new customers from a new competitive environment.

To realise this vision we have created a clear brand strategy, and a unique range of cars which will lead our market offensive.

Cars that fit the Bentley ideals of:

Racing, Driving, Power, Design and Craftsmanship.

These hallmarks are best illustrated by three entirely different modern Bentleys.

One: a "handcrafted" state limousine for Her Majesty

Queen Elizabeth, which will be chauffeur driven at around 10 miles per hour.

The second: a Le Mans race car theoretically capable of over two hundred and fifty miles per hour.

The third, the new Continental GT, is a unique combination of both these Bentleys.

A Bentley of the 21st Century which combines 56 years of Crewe craftsmanship with the precision of modern technology.

The new Continental GT also marks the end of our relationship with Rolls-Royce and the beginning of a new era for Bentley.

For all of us at Crewe, 2002 was a year of change. A year of transition.

Inevitably, as with all change, there has been a price to pay.

In 2002 we started to ramp down production of the existing two-door range - the current Continental and Azure, which will be discontinued, this year.

And in August 2002 the last Crewe Rolls-Royce came off the production line.

All this change along with the negative global economic situation, has obviously affected our sales. Adrian will give you a few more details in a moment.

But these business decisions have been made to ensure that we are prepared for the upturn and success that will follow.

At Bentley we must never forget that, as well as being one of the most emotionally captivating of all automobile marques, we are still a business.

There is another aspiration that goes hand in hand with the planned success of our road cars - our racing success.

In particular: our ambition to win Le Mans and our return to racing in the US. When the two Speed 8's light up the tarmac at Sebring in March, they will be the first Bentley Motors race cars to do so for 80 years.

At the helm of one of these cars I have great pleasure in confirming our drivers will be will be: four times Le Mans winner Tom Kristensen from Denmark, "Dindo" Capello from Italy and Guy Smith, from Great Britain.

Again, we are re-shaping our history in a determined goal to be "winners".

Although this year will be a further transition year as we build up to full production of the Continental GT, I am determined that you will see a winning Bentley team both on the road and on the track.

Here in Detroit, the Bentley Continental GT makes its most important debut, in one of our most important and discerning markets.

When, finally, you are able to drive it, stand by to re-write the rule book.

In the meantime, enjoy the sheer presence of the single-most impressive, four-seater true Grand Touring coupé, you will see at this show.

Thank you.

Adrian Hallmark, Member of the Board, Sales & Marketing
Bentley Motors
North American International Auto Show, Detroit 2003

Thank you Franz-Josef, good afternoon ladies and gentleman.

It is only six days since Bentley became independent from Rolls-Royce, it seems fitting that Bentley Motors makes its first solo appearance here in Detroit, bearing in mind the importance of the US market to our company.

Firstly, I just want to say a few words about our sales results for the last 12 months. A year which has seen our business enter a new chapter. We have built our last Rolls-Royce and are now squarely focused on a journey that includes the development of the Continental GT, of our sports car racing programme and Series Two Arnage which has already met with positive reaction from customers and press.

In 2002, the economic conditions have not been as favourable as we or anyone in our industry would have liked.

If we look at the four door luxury sector as a whole, sales fell by over 37 per cent and whilst we also lost ground, Bentley managed to stay ahead of its competitors, with reduced sales of just over 20 per cent. Combined Rolls-Royce and Bentley sales in 2002 reached 1398 compared with 1799 in 2001.

The reduction in demand not only reflects the cessation of Rolls-Royce production, but also the downward trend in stock market indices over the last 12 months - a significant linkage given that approximately 30% of the net worth of Bentley owners is held in stocks and shares.

Interestingly though, at the end of the last major, global

economic downturn, there were more millionaires than at the start so, despite the existing uncertainties of the world economy, we continue to be optimistic for the luxury sector.

And we have good reason to be so. I hope you agree, that the Bentley Continental GT is very special - not just because it is the fastest genuine four seat coupé in the world, but also because its pace combines with the finest Bentley craftsmanship, delivered through some of the most advanced technologies available.

So just what have we created?

Well firstly, we listened to our customer's demands and they simply want everything. Here is a car designed for those who crave true super car performance, contemporary design, Bentley standards of luxury, and the ability to carry four people and their luggage.

Having now shared this design with existing and new Bentley owners, early indications suggest that this concept has real appeal.

Market entry into Europe is set for the third quarter this year with the official unveiling of our first production car just eight weeks from now at The Geneva Motor Show in Switzerland.

And despite our understated approach to date, our production is pre-sold through to the middle of 2004 with over two and a half thousand deposits taken.

Moving to our race programme, we have already described our campaign but I would like to officially announce that Breitling the Swiss watch maker, that needs little introduction will become the main sponsor for Team Bentley in 2003.

The relationship goes beyond racing and into the design of a unique Breitling watch for Bentley. And recognition of their support in design of our instrumentation is evidenced by the Breitling logo on the clock in the Continental GT.

So-in the roaring Twenties, Bentley legend was formed. It was independent, vibrant and dominated motor sport.

In 2003, Bentley is now again independent, and we face the future with confidence, a new world-class product range and a race programme to improve the breed.

And despite short-term uncertainties, we make no excuses for being optimistic in our outlook - we can see the future for Bentley, and believe me, we have only shared with you our first steps.

We can't wait to show you the rest, but for now please join us for that champagne that Alasdair promised you

Thank you.