The solution to avoid production problems is simple: don’t make large volumes and create an exclusive product with impressive margins. Although the supply of semiconductors begins to decrease in the second half of 2022, it is not the same to assemble 8.8 million units, as the Volkswagen Group delivered in 2021, since this figure is 6,021, as Rolls-Royce did. last year.
The same thing happens in almost every industry: wine, watchmaking, fashion… in all these industries there are examples of business models that focus on volume and others on the margin per unit. Swatch costs a lot more than Rolex, but ultimately the luxury image is only associated with one of the two.
In the automotive industry, the analogy can be made with two brands that are the epitome of exclusivity, both English: Rolls-Royce and Bentley. In the case of the former, the year 2022 was a historic record, as it was the first time the sales threshold of 6,000 units was crossed, with a growth of 7.8%.
His rival, Bentley, be his
fourth consecutive year of growth, with 15,174 deliveries – taking into account that some of its vehicles sank in the Atlantic Ocean – 4% more than in 2021.
Both manufacturers overcame a drop in demand in an important market: China. The country, with the restrictions of the coronavirus, negatively impacted Bentley’s sales by 9% and a “single-digit” decline, which the CEO said
Torsten Muller-Ötvös“compensated by growth in other markets.”
The average order price was
about 500,000 euros for Rolls-Royce and 220,000 euros for Bentley, something that both brands associate with their successful personalization programs, which they want to promote in the future. Every detail can be custom-made for the two English brands, including 5,000-year-old wood finishes for Bentley.
Similar to the general market, the silhouette most requested by customers turned out to be the SUV. In the case of Bentley, 42% of its registrations fell on the Bentayga, a refined behemoth whose price starts at 217,200 euros. Rolls-Royce has already confirmed that it will launch the Cullinan for that, with an estimated price from 290,000 euros.
With a view to the end of 2023, Müller-Ötvös states that its order book “runs well into 2023 for all models. No slowdown in the number of purchases has been observed”, this is true even after leaving Russia, a market that accounted for between 250 and 300 units per year.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
