Bentley Continental GTC Speed
Weak Pound Leads to UK Prices Hike
By Sam Stockley
February 27, 2009 7:36 AM
Filed Under: Bentley, European, Pricing
The depreciation of Sterling vs. the Euro has forced British car maker Bentley to hike the list price of its entire range in the UK. With many of the firm's components sourced from Eurozone suppliers, the 18% drop in the Pound vs. the Euro in the last year has increased unit costs significantly enough that a 5% increase in the retail price has been deemed necessary - even in the current sales climate.
The news is however of little consequence to Bentley's largest market, the US, Europe and the emerging markets of China and Russia, where prices remain unchanged. "Sales to the Euro-zone provide us with a natural hedge against our Euro denominated costs, so we are able to avoid any price increases in other European [and overseas] markets," said Stuart McCullough, Board Member For Sales & Marketing.
The price increase takes effect for all orders taken after 31st March. Prices from April will start at £123,800 for the Continental GT. The Press Release contains the full list of updated prices.
Source: Bentley
Press Release (Click to expand)
Bentley Announces Increase in UK Prices
Decision driven by the falling value of Sterling
The continued weakness of Sterling against the Euro, has forced Bentley Motors to increase the price of all its models within the UK by 5% from the start of April 2009. The price increase will apply to all new orders received after 31st March.
"We are reacting to the continued very low value of Sterling against the Euro", said Stuart McCullough, Board Member For Sales & Marketing. "As a UK business with much of our component costs based in Euros, we have to address the fact that our costs have increased significantly given Sterling's dramatic decline."
"A 5% price increase at a time of reduced demand and therefore reduced production may seem counter-intuitive", said McCullough, "but Sterling has depreciated by over 18% against the Euro over the last 12 months. It has therefore proved increasingly difficult to absorb the negative effect of these increased costs on our business."
"Sales to the Euro-zone provide us with a natural hedge against our Euro denominated costs, so we are able to avoid any price increases in other European markets."
Other overseas market pricing is unaffected.
UK Prices Applying From April 2009 RRP inc. 15% vat
Continental GT £123,800
Continental GT Speed £141,300
Continental Flying Spur £120,700
Continental Flying Spur Speed £137,000
Continental GTC £136,200
Continental GTC Speed £153,400
Arnage R £173,100
Arnage T £183,100
Arnage Final Series £200,400
Arnage RL £201,400
Azure T £245,000
Brooklands £236,400
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Geefiasco
February 27, 2009 3:14 PM
