Good morning, ladies and gentlemen, and welcome to the Bentley stand. I first want to thank you for coming so early. The press conference schedule this year left us no choice but to meet you at this time, and I am grateful you could be here.

This morning I would like to give you a quick update on our sales performance, announce a new partnership that will deliver the world’s ultimate in-car audio experience for Bentley customers, before reaching the main part of this morning’s presentation, our Environmental Strategy for the future.

As you can see on the stand, we are presenting for the first time our complete line-up, with the full Continental range, and the full Arnage range, including the recently launched Brooklands, which has met with tremendous success.

These six cars represent a symbolic milestone in the history of Bentley. Five years ago we sold less than 1,000 cars. In 2007, we set a new record, exceeding 10,000 units for the first time. Our growth has come not only from our traditional markets, such as the US, the UK and continental Europe, but significantly also from emerging markets. In China alone, our sales grew by 93% last year, reaching a total of 338 units.

Despite the financial instability that has been affecting the world economy, we expect to maintain this year the momentum we have created. Our current position gives us excellent profitability, and is where we want to be in terms of volume.

You will also see on the stand that we are announcing a new partnership with Naim audio. Naim is one of the world’s most respected creators of premium quality audio systems, and together we aim to produce an unparalleled in-car sound system for all our future models. We each have a proud British heritage and a reputation for offering our customers the very best; it’s a perfect fit.

The main subject I would like to entertain this morning is the environment. At Bentley, we have been investigating the best way to tackle environmental issues for over a decade, as can be seen, for example in the major CO2, water and energy reductions we have achieved in our manufacturing operations. The strategy and plans we are announcing today for our vehicles reflect years of engineering studies and intensive product development.

We believe that there are two major issues facing the automotive industry in the 21st century: the security of fuel supply, and climate change. Our strategy seeks to address these two related issues simultaneously, and is based on long-term solutions.

Increasing demand from developing markets, global growth in mobility and a slowdown in the rate of discovery of new sources of oil have recently pushed the price of crude oil above $100 per barrel. Coupled with a turbulent economic and political climate, the issue of fuel security is becoming ever more urgent.

The underlying fact remains that future global demand for energy, be it fossil fuel based or otherwise, far outstrips the current level of supply. Accordingly, Bentley believes that governments and industry must look for alternative sources of sustainable, renewable energy that will provide stability to fuel supplies in the future. Significant investment is required both in the development and integration of sustainable fuel sources – such as renewable biofuels – to ensure energy security going forward.

Complementary to this is the link between rising CO2 levels and climate change. The consequences of global climate change cannot be ignored. Passenger road transport currently contributes 12% of global man-made CO2 emissions, approximately 3 billion tonnes per year. Whilst in absolute terms Bentley cars represent a small portion of these global automotive CO2 emissions, we are convinced we have an obligation to act, and will be taking significant steps to reduce our fleet’s impact on the environment.

I can announce today that, on a well-to-wheel basis, the entire Bentley model range will become capable of delivering less than 120 g/km of CO2 by 2012. The well-to-wheel measurement is the only accurate way to measure the total energy expended from every step of the life cycle: from producing and distributing a fuel to its use in a vehicle.

So how will we achieve this? Our strategy will be implemented in stages, the first of which is expected to reduce overall tailpipe CO2 from new vehicles by at least 15% by 2012.

These efficiency improvements will be achieved first through the application of innovative technology to our 8 and 12 cylinder engines, including enhanced engine management, and new, improved transmissions and drivelines, as well as through weight reduction. This is part of our commitment to reduce CO2 output on every new model.

Secondly, a new powertrain will be introduced by 2012, delivering a 40% reduction in fuel consumption, while maintaining current levels of performance.

Thirdly, all engines across the entire range will become compatible with the use of renewable fuels by 2012, with the initial rollout starting next year. This fuel change has the potential to offer massive savings in CO2.

Over many generations, Bentley has built a reputation for superb performance, and the measures we are announcing today will in no way alter the character or performance of our vehicles. As another milestone in the history of Bentley, they reflect the increasing expectation from our customers around the world for performance motoring with fuel-efficient engines.
We occupy a leading position in the luxury segment of the automotive industry. We will become the first manufacturer in this segment and one of the first in the world to deliver vehicles capable of running on 100% renewable fuels throughout the fleet.

It is our conviction that renewable fuels, in particular second-generation biofuels, have immediate and strong potential. Such fuels:

* do not compete with food production, and require minimum additional land use, since they are derived from biomass, a waste product.
* They also deliver much higher yields than first generation crop-based fuels
* and on a well-to-wheel basis, they can deliver a consistently high net CO2 reduction of up to 90%.

By preparing our engines at an early stage for renewable fuels, we believe we will help accelerate their adoption, as the supply and market for them develops.

Through this strategy and these plans, we aim to meet our customer expectations, and to assume fully our corporate social responsibility with regard to environmental issues. We also hope to make a positive contribution to the ongoing debate on how best to respond to environmental challenges within the automotive industry. We look forward to updating you on the progress of our plans.

Thank you for your attention.

Source: Bentley