Robb Read: Are We On a Private Flight To Climate Hell?
Private aviation’s booming. Critics say flying’s wrecking the planet, but what are the facts?
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There’s never been a busier time for private aviation. Vista Global Holdings, for example, reported a 64 percent rise year on year in 2021 for its VistaJet and XO brands, and fractional behemoth NetJets reported a 30 per cent rise vs pre-pandemic levels. That boom, of course, was powered mostly by the switch to private flying as a result of Covid-19, but it’s likely to continue even as we move out of the pandemic phase: 92 per cent of the members of Private Jet Card Comparisons said they would fly the same or more in 2022 versus last year. Another 95 per cent said they would renew their card or program memberships.
But should we be getting on planes at all—let alone flying private? Are the environmental costs too great? Are carbon offsets just a way to relieve guilt and greenwash airline travel?
As the world’s attention on climate change intensifies, anti-take-off efforts are, well, taking off. Take the concept of flygskam, or flight shame. This Swedish-birthed anti-aviation campaign leverages social pressure to keep folks grounded: Cut out flights, flygskam-ers posit, and you’re making major sacrifices to offset climate change. Nothing’s worse in the sector than private aviation, with its let-them-eat-cake-at-60,000-feet reputation: Per one study, flying private can produce eight times more emissions per person than comparable jaunts on commercial carriers. So with a surge in private flying, and that sense of impending, aviation-induced doom, are we on the flightpath to hell?
Worldwide flights produced 915 million tons of CO2 emissions in 2019, or 3.5 per cent of total output, while private aviation accounted for 37.1 million tons. Courtesy AP
The facts, of course, are a little more complicated. First, some data: Worldwide flights produced 915 million tons of CO2 in 2019, though the entire human output of that pollution was 43 billion tons total in the same year. By most estimates, per data from 2018, flying produces around 2.5 percent of global CO2 emissions, or 3.5 percent of what’s known as “effective radiative forcing”—think of that as its overall impact. Another study says that business aviation contributes just 2 per cent to overall aviation emissions, but that on a per-person basis, its emissions are much more damaging on a per-person basis. One study of private aviation’s annual contribution to greenhouse gas emissions pegged it at 37.1 million tons.
On the flip side, the Air Transport Action Group, an industry-funded body, touts that aviation overall would rank 17th in the world if its economic activity is compared with individual countries, or around the same as the Netherlands.
“Aircraft are tools of global trade—they can’t fly on fairy dust and neither can the global economy,” says Hong Kong-based Paul Jebely, head of asset finance at law firm Withers Worldwide; he works with UHNW folks across the world every day to buy and finance private planes. “There are lots of armchair Captain Planets who willfully overlook, or fail to recognize, the second- or third-order consequences of their flight shaming. That iPhone permanently glued to their hands has a bigger footprint to get into someone’s hand thanks to shipping, logistics and mining. But let’s go ahead and replace the aviation component with carrier pigeons on a gluten-free diet and, somehow, it’ll all be better.”
Paul Jebely Withers Worldwide
Jebely’s numbers are off: per one estimate, the lifetime carbon footprint of an iPhone is around 168 lbs of CO2-e (carbon dioxide or equivalent greenhouse gas); Apple’s own data shows that the environmental footprint of an iPhone 13Pro varies from 69kg- 111kg of CO2-e, depending on storage memory capacity. It’s hard to quantify the average carbon footprint of private jet travel, given variations in plane capacity and fuel efficiency, but by one estimate, the per person environmental impact of flying private is around 631 lbs of CO2-e per hour. The BBC Reality Check team’s own calculations produced a figure of 430kg per person for the same period.
Still, the truth is that there’s still good reason to make efforts to minimise the climate impact of every private flight. Sustainability in this sector is in its infancy, but many leaders are making worthwhile strides. It’s responsible and responsive; corporations, too, are increasingly setting goals that include targets around CO2 emissions related to their business, including jet flights. The nimbleness of this sector, as well as the higher margins compared with commercial operation, mean that innovation should ignite more readily here. “Everyone in the entire aviation industry is well aware of the necessity of reducing aviation’s climate impact while also being aware of the fact that we’re bearing a heavier burden than other industries because of the public pressure,” Jebely continues. “But private aviation can and must and will do better.”
Jebely points, for example, to efforts by OEMs like Bombardier and Gulfstream to improve the footprint of their production processes. Fractional and charter firms, of course, are keen to tout their commitments to climate—NetJets, for example, now includes carbon offsets in all proposals, and has committed to buying 450 million litresof sustainable fuel from WasteFuel. Sustainable aviation fuel, which still has extremely limited distribution around the world, can cut aircraft emissions by 80 percent. No firm, though, goes as far as London-based Victor.
Earlier this month, Bremen airport in Germany offered the airport’s first fueling with sustainable aviation fuel. Courtesy AP
The firm has established a program in which it pays for 200 per cent of every flight its clients charter. The money comes from Victor’s own bottom line, rather than as an add-on to its clients’ invoices. Last year, for instance, the company organized flights totalling 2.7 million nautical miles, which created 27,906 tons of emissions. Victor purchased 60,128 carbon credits that were invested in forest restoration and wind-power projects in Borneo, Cambodia and Turkey. The company bought 93 per cent of the credits, while its clients contributed 7 per cent. “My personal gold standard is to avoid flying whenever possible and the middle ground is to reduce how much we can fly,” says Victor Chairman Clive Jackson, who launched the program. “To mitigate means that if you have to fly then at least have the good grace to clean up after yourself.” Translation: Buy carbon offsets or use sustainable aviation fuel.
Jackson says he brokers around 5,000 flights for clients per year, versus the 300,000 or so that, for instance, industry giant NetJets handles.
Carbon offsetting isn’t endorsed as a practice by all climate-change experts. “It has a long history of not lowering carbon levels,” says Greenpeace UK’s Charlie Kronick, who notes that his own organization doesn’t buy them as they don’t actually reduce the amount of carbon dioxide discharged into the atmosphere, the key metric for Greenpeace. “They are too often based on exaggerated claims of emissions reductions,” he says, “A one-off payment for a carbon credit does not assure the growth of trees, nor protection of forests from fires or industrial pressures.“
Clive Jackson, CEO of Victor Victor
While carbon offsetting is important, it’s much less sexy than another option touted as a solution to flying private, guilt-free: eVTOLs, (Electric Vehicle Take Off and Landing aircraft). Those Tony Stark-like concept planes rely on climate-friendly fuel for propulsion and take off and land much like helicopters. No wonder, then, that the real-life Iron Man, Robert Downey Jr, has invested in Whisper Aero, one of the startups aiming to pioneer this technology. The commitment has been attention-grabbing enough that it’s persuaded several celebrities to invest in different firms, including the J-Lo-backed Archer, and Larry Page’s Wisk, which have been embroiled in legal tussles.
The eVTOL segment, which has attracted serious financial investors for a half-dozen brands, expects to see it first electric aircraft certified in 2024 and 2025, with widespread adoption expected closer to 2030. Besides their emissions-free credentials, they will also offer new ways to commute within cities and regions., though eVTOL aircraft are likely to come into service as cargo carriers before being adopted for passenger transport.
Mike Hirschberg, the executive director of the , the leading eVTOL association, says battery technology will need to progress to increase range for the aircraft before there is widespread commercial use. Hirschberg adds that it’s vital that work on an infrastructure for eVTOLs starts sooner than later, and forecasts it will be at least a decade before eVTOLs are mainstream.
A wisk Aerotaxi in flight
In the meantime, the industry is looking at piecemeal solutions. Kennedy Ricci, whose family owns Directional Aviation, just launched 4Air, which offers a certification program that aims to be the eco equivalent of the safety ratings produced by industry-standards firm Argus. The start-up doesn’t handle flights, either as an operator or a broker, but instead works with companies that do to both improve their sustainability efforts and certify their actions to reassure clients. CSG targets at corporations are key drivers for his business growth, but Ricci tells Robb Report that there’s another audience that’s critical: “We see it’s a lot about employees—companies wanting to retain good talent who want to work for a more sustainable firm. They want to show their employees they’re trying to be better stewards.
The cost of partnering with 4Air on a flight program is minimal, per Ricci—a few hundred dollars at most per hour of flying for its most intensive certification. 4Air offers four tiers in its program, ranging from simple carbon neutrality in level 1, or Bronze, to a commitment to sustainable fuels in Gold or level 3—that’s a commitment to not just offset but also reduce emissions. The fourth tier, Platinum, is the company’s most ambitious: It involves a commitment to underwriting innovation in aviation via a contribution to the 4Air-helmed nonprofit Aviation Climate Fund. It focuses on research and development, working with innovators around the world, including the team at the Whittle Laboratory at Britain’s University of Cambridge. That lab is named after the jet engine inventor who graduated from the same university, and Professor Rob Miller is one of its current team.
Contrails from a jet airliner Adobe Stock
SAF and eVTOLs are, of course, potential solutions to the climate crisis when it comes to private flying, Miller says, but there are other, more unexpected ways that private aviation can lead the reduction in CO2. Take condensation trails, or contrails, for example. These remain in the upper atmosphere for far less time than carbon dioxide—hours versus years. “But nitrous oxide produced when you burn nitrogen in an aircraft, that’s a greenhouse gas, and soot is going into the atmosphere, too. The contrails can form cirrus clouds, too, and that has a global-warming effect,” he says, “When you add all those together, you find that CO2 is only really half the problem.”
Reducing contrails, then, should be a focus for aviation innovation, he says, citing work on hydrogen fuel-cell aircraft. “The hydrogen that reacts in the fuel cell is closer to the environmental temperature outside, so it doesn’t produce nitrous oxide or soot. And we don’t know for sure, but you may also be able to condense out some of the water.” Miller also points to routings of planes as an easy way to improve sustainability: Aircraft flying in the Gulf Stream across the Atlantic, for example, are more fuel efficient. “Right now, you have to be at a certain distance from each other because air traffic control is not good enough to allow them to be closer.” Aircraft manufacturers have changed their avionics to fly more efficient routes, resulting in an estimated five to ten percent reduction in emissions. All of these tweaks are more readily adopted by nimbler private flying firms, of course, than any large, commercial airliner.
Miller’s insights highlight easier wins that the aviation industry has overlooked. Congested air traffic control or ATC systems, for example, contribute hugely to emissions: Operational planes spend 15 percent of their time on the ground rather than in the air, burning fuel all the while. One fix touted by Paul Jebely is TSAS, a NASA-championed program from 2017 that promises to streamline ATCs. “The most important advancement aviation can make, globally right now, whether commercial or private, is making ATC systems way more efficient,” he says, “This is basically like a super software update to air navigation and ground control systems and is available right now. If it had been adopted two years ago, it would already have had an impact.” (Singapore’s Changi airport is currently trialing these systems.)
NASA TSAS air traffic management software simulation NASA
It’s a reminder that there isn’t a single area where charter user and private aircraft owners should focus their sustainability efforts—carbon offsets might be box-ticking, but they’re still important. Wealthy fliers, though, can apply financial support or pressure in less familiar areas to perhaps greater effect. “People fixate on planes flying around the sky, and that’s a misplaced focus,” says Jebely. “The damage is done not just when they’re flying around but [when they’re built], and by them sitting on the ground.”
While there’s no easy solution to erasing aviation’s environmental impact, the solutions are being adopted—albeit slowly—by the leaders, and even some of the smaller firms in private aviation. Victor’s 200 percent offset program is a start, but the fact that only seven percent of its clients are willing to pay for offsets gives a sense that the change may have to come from top-down legislation or a more concerted industrywide effort to make SAF and electric aircraft more common.
Many private aviation companies have launched carbon offset programs, but it’s not clear how effective they are in actually reducing carbon emissions. Courtesy AP
“We need a higher level of transparency,” says Victor’s Jackson. “I would like to see all flight movements published—was the flight a carbon-offset or not? I want it to be verified. Follow the money. We have to think about the claims that individuals and companies make as they aim to promote and differentiate themselves.
“Right now,” he continues. “There are no regulations or obligations to prove whether or not the claims companies are making are true. We need independent monitoring by region, industry and country. What goes into the atmosphere is important, but we also need to find out what we’re missing and whether our actions are working.”
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Home is Where the Art Is
Six standout Australian galleries to know now.
Australia’s gallery scene is booming. More galleries than ever before are going on the road to participate in art fairs in scene that is rapidly maturing. Meet the passionate local owners from around Australia who are energising the creative milieu with the abstract, the edgy, the Indigenous and the generally astounding.
Hugo Michell Gallery
The district may not roll off the artistic tongue like Paris’s Montmartre or London’s Shoreditch, and yet the prim hedges of Adelaide’s Beulah Park suburb provide cover to a stealth powerhouse of the Australian contemporary art movement, tucked away in a charming, blink-and-you’ll-miss-it converted Victorian workers’ cottage. Since 2008, the Hugo Michell Gallery has unflappably carried the torch for established and emerging acts with equal fidelity, across a broad sweep of mediums from photography to printmaking, textile to ceramic. “We try not to get caught up in the hype and handle each artist we represent with the nuance required for promoting their work,” says Michell, currently counting 28 artists on his books. One notable on this year’s busy docket is Melbourne-based Richard Lewer, a social realist—already snapped up by the National Galleries of Australia and Victoria, no less—who for a month from April 10th will probe the uneasy relationship between crime, sport and religion. While comfortable in the skin of his homely suburban bolthole, Michell is not averse to braving the rigours of the Australian art fair circuit (“They’re a bit of a circus, but who doesn’t love a circus?) and often undertakes house visits to acquaint himself with the whims of new customers. “One of the things that gives me the most joy is building a collection for a client,” he says. “We have worked with for 16 years, tailoring and sourcing works for them.” More proof that you don’t need a headline location to generate the biggest stories.
hugomichellgallery.com
Cassandra Bird Gallery
The art sphere often challenges the myth that married partners should not become gallerists—see Iwan and Manuela Wirth of Hauser & Wirth fame, among other examples. And so it is that Cassandra Bird and husband Fabian Jentsch are rapidly cementing a reputation as one the Australian art scene’s supercouples with their 2023-acquired Potts Point space, an expansive four-level heritage terrace fizzing with congeniality, making visitors feel like they have popped to a friend’s (expertly curated) home for elevenses. Which is no great shock: the property doubles as the duo’s own home. Bird brings a wealth of experience, and a hefty contacts book, thanks to long, respected stints in the Big Apple and Berlin, and nine years at Sydney’s RoslynOxley9 Gallery; Jentsch, meanwhile, is an experienced artist, exhibition maker and set designer. “We try to enthuse people, get them excited as we are about those we work with,” says Bird. Meander across the property’s wooden floorboards—perhaps diverting for a chat in the communal courtyard that doubles as a social hub and ideas-exchange forum—and you will enter the realm of Perth-born graphic painter Jedda Daisy-Culley, who has a hallway and wall dedicated to her work; venture upstairs and deep dive into locally based experimental photographer Laura Moore; head into the basement and peruse the collective works the Tennant Creek Brio, out of Warumungu Country in the Northern Territory. All 24 of the gallery’s artists unite under the theme of timelessness. “We are into investigating quality and showing transformational and breakout work from artists,” says Jentsch. “The work we choose must have something that is strong value for us.” Here’s to the sanctity of marriage.
D’lan Contemporary
It speaks volumes for the international reach of Indigenous art that D’lan Contemporary opened an outpost in New York long before expanding the gallery beyond its Melbourne roots to set up shop in Sydney. Then again, founder and director D’lan Davidson is not afraid of expanding his frontiers as a means of hawking Australia’s most vital cultural outpourings; in 2016, he left the Sotheby’s Australia auction house, where he was ensconced as head of aboriginal art, to launch D’lan Contemporary as the go-to gallery for secondary market First Nations art; and he recently travelled to Maastricht in the Netherlands for the prestigious European Fine Arts Foundation Art Fair, promoting a series of Western Arnhem bark paintings and works by Paddy Bedford, Emily Kame Kngwarreye, Rover Thomas and other. Closer to home, Davidson has surrounded himself with a team brimming with the requisite Indigenous art smarts, including chief curator and gallery director Luke Scholes. From May 8th-July 4th, the Significant exhibition, a mainstay of the Melbourne gallery for the past ten years, will show across all three of D’lan Contemporary’s locations. “Our exhibitions and all our advocacy work seek to further support and develop the burgeoning global interest in Australian First Nations art and artists,” says Scholes. As if further proof were needed of its commitment, the gallery donates 30 percent of its profit back to artists and their communities. Bravo.
N.Smith Gallery
Enter Nick Smith’s compact office and you notice how the walls are studded by the artworks of those he represents; this is a man, you feel, who has a more intimate connection to his stable than the average gallery chief—an instinct confirmed upon discovering that he has invested his entire life savings into the Surry Hills space. When we meet, Smith’s whiteboard is teeming with collaborative projects, hinting heavily at the kind of edgy, thought-provoking artists that his outfit—comprised of five full-time staff—is renowned for nurturing. “It’s constant, but amazing,” says Smith in his typically reserved manner, more studious scientist than reengage gallerist. “I wanted to contribute to culture in my own way.” The gallery’s current ascension allays any empathetic fears of impending financial doom. This past February, Smith—who cut his teeth at Philip Bacon Galleries in Brisbane and Sydney’s Sullivan+Strumpf—collaborated with the Australian High Commission in India to represent Darrell Sibosado at India Art Fair ’25, and throughout the year will be partnering with the Sydney chapter of Soho House to host a series of private viewings and artist studio visits. Even so, he now splits his time equally between private and public projects, often mentoring artists at all stages of their creative journeys. “It’s that forward momentum. It’s that feeling of progressions and going somewhere that I love,” says Smith. Indeed, the only way is up.
Palas
It is hard—nay, almost impossible—to imagine Palas founders Tania Doropoulos and Matt Glenn frantically trying to scoop up whoever is flavour of the month on Sydney’s perennially shifting art circuit. Here are young gallery partners prone to a slower, more considered approach, instead recruiting a tight roster of internationally famed artists, and choosing to nurture relationships that have been years, sometime decades, in the making. Case in point: video performance maestro Shaun Gladwell, who represented Australia at the 2007 Venice Biennale (a 20-year affiliate), and Melbourne-based artist and noise-musician Marco Fusinato (15 years), who also flew the artistic green and gold at the same festival in 2022. Add to that list Canadian multi-media artist Tamara Henderson and Irish sculptor Eva Rothschild, currently working out of London, and it is clear Palas have a formidable roll call to lean on. “We’re investing a huge amount of time into their processes as art makers,” says Doropoulos. “And I think by extension, we’ve got really good working relationships with other galleries throughout the world.” For its founders, the Palas gallery—which opened in Sydney’s resolutely hipster Waterloo suburb just over a year ago with a silkscreen painting medley by the aforementioned Fusinato—is somewhat of a flag-planting endeavour on home soil: both earned a certain amount of their stripes overseas—Doropoulos as former artistic director of Frieze London and Frieze Studios, and Glenn at Sadie Coles HQ, also in the British capital. Australian art disciples will no doubt be praying for a long domestic residency.
Coma
If Sotiris Sotiriou’s consciously balanced ensemble of black Saint Laurent suit, single gold chain and flash of bare chest are anything to go by, the Coma gallery founder wields a sharp eye—a handy attribute to have when your career depends on identifying aesthetic clout, what hits and what doesn’t. From humble beginnings in 2016 in a subterranean road space next to Elvis Pizza on Sydney’s New South Head Road, his enterprise gradually flowered, first to East Sydney, then Chippendale, before fully blooming at his current space in up-and-coming Marrickville, in what was once a coffee factory. The predominantly light-industrial area has witnessed around half a dozen new gallery debuts in recent years, and Coma’s door-fling, filled as it was with hip young Inner West couples sourcing bold, ambitious art for their homes and offices, suggests Sotiriou has timed his arrival to perfection. February’s opening exhibition was hosted by Australian (but Santa Fe based) figurative painter Justin Williams, whose approach riffs on the folkloric traditions of Russian and Polish art, rich with symbolism and psychological details; this work forms a striking counterpoint to the abstract expressionism of other Sotiriou recruits, such as Zara June Williams and her partner Jack Lanagan Dunbar. The Coma head honcho, who had a spell selling to wealthy clients at Nanda Hobbs, says that private clients now make up most of his customer base. This year, as he prepares to attend three international art fairs, he estimates his artistic head count to increase by 30 percent. He can, no doubt, also point you in the direction of a fine tailor.
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Car of the Year
Always an unmissable highlight of the automotive calendar, Robb Report ANZ’s annual motoring awards set a new benchmark among glorious Gold Coast tarmac.
Over two unforgettable days, our motoring sages and VIP guests embarked on an exhilarating journey from Surfers Paradise to Brisbane and back again—traversing an irresistible selection of terrain in our exotic rides, from deserted rainforest-lined b-roads to testing mountain switchbacks with dizzying—sometimes heart-in-mouth—views over the southern Queensland peninsula. And as befitting an event starring the crème de la crème of auto marques, we did so while savouring the best in luxury and gastronomy—capped off with an extraordinary superyacht experience at Sanctuary Cove.
The ten contenders for the Car of the Year were not the only dream machines on show. The first day’s adventure kicked off at the Langham Hotel and included a midday pit stop at the glorious Beechmont Estate, where our fleet of drivers were greeted by a stunning array of vintage cars exhibited in a concours d’elegance-style display.
The sumptuous feast for the eyes on offer at Beechmont, a quaint country village located between the Lamington Plateau and Tamborine Mountain, was followed by a meal for the ages prepared by executive chefs Chris and Alex Norman at the property’s hatted restaurant, The Paddock.
Then, itching to remount our steeds, it was time to hit the road again, with our drivers—all sporting Onitsuka Tiger’s new driving shoes—hightailing it to Brisbane and The Calile Hotel, a property which has been scooping accolades like Jay Leno collects supercars.
After some much needed relaxation by the pool, that evening the drivers and press were joined by local luminaries in the hotel’s private dining room. Over an extravagant banquet they got to compare notes on marvels of engineering and design that they’d had the chance to pilot all day. They were also treated to a showcase of spectacular Jacob & Co. timepieces and Hardy Brothers jewellery and an elegant sufficiency of 40-year Glenfiddich whiskey served in gold cups worth $60,000 a pop. It made for animated discussions and more than a little impromptu shopping.
And did we mention the luxury yacht experience? After a full itinerary of adventures on the road, the day ended with an invigorating late-afternoon of luxuriating aboard two new Riviera Yacht releases—the 6800 Sport Yacht and the 585 SUV—where our intrepid drivers and assorted press got to literally and figuratively take their hands off the wheel and make a case for their car of the year. As the forthcoming pages attest, they were more than spoiled for choice. But who would take centre stage on the winners’ podium?
OVERALL WINNER
BEST SPORTS CAR
BEST LUXURY HYBRID
BEST PERFORMANCE SUPERCAR
BEST ROADSTER
BEST CAR DESIGN
BEST ELECTRIC PERFORMANCE CAR
BEST SUV
Cruise along to robbreport.com.au/events for more supercars and luxury motoring.
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Cool as Ice
Mercedes-Benz’s CEO Ola Källenius is expert at racing a nearly four-tonne truck across a frozen lake. Can he steer the marque’s EV-focused future as adeptly?
Ola Källenius is standing in a cold, bare workshop just south of the Arctic Circle in his native Sweden. A heavily disguised prototype of the new electric G-Class SUV—not yet launched when we meet—has just returned from high-speed, low-grip testing on tracks cut into the frozen lakes nearby and is being hoisted into the air on a hydraulic lift for inspection. As it drips meltwater onto the concrete floor, Källenius, CEO of the Mercedes-Benz Group, eats his lunch (today, a premade sandwich and a carton of juice) and speaks in fluent German to the mostly Austrian engineers who spend months in this bleak locale ensuring that the company’s new models can cope with the types of conditions in which vanishingly few customers will ever actually drive. They discuss the truck’s handling on ice and the progress of its test program. Källenius compliments them on the car’s dynamics—how stable it remained even at speed, how safe he felt driving it—and asks them how long they’re here.
“There are some harsh realities to this job, and to the car industry,” he tells me later. “But this is what I love doing: spending time with our designers, or driving with you on an ice-lake in Sweden, or talking to these engineers. I wanted to congratulate them on what they’ve achieved. We get to enjoy a nice couple of days here, but they’re here for a long time.”
At 193 cm, Källenius might tower over most of them physically, but there’s nothing in his demeanor that hints at the disparity in their corporate statuses. Nor is this the kind of place you’d expect to find the head of one of the world’s great luxury brands: a man paid roughly $22 million last year to lead the 166,000 employees of a company valued at around $75 billion, whose founder, Carl Benz, invented the motor car and whose genuinely iconic logo has graced the nose of everything from popemobiles and Lewis Hamilton’s Formula 1 racer to the most expensive automobile ever sold at auction. In a recent report, investment analysts Bernstein described Mercedes-Benz under Källenius’s reign as a “four-wheeled cash-generation machine”.
Courtesy of Mercedes-Benz
But the celebrated car marques are not like luxury brands that make watches or couture or accessories or Champagne. Look beyond the alluring badge and bodywork for a moment: the objects Mercedes-Benz and its rivals produce are insanely complex, ever-changing and hugely capital-intensive—and must succeed in an utterly cutthroat market. Their impact on the environment and the economy has always made them perennial hot-button issues politically. But the electrification of the automobile has put these companies in the geopolitical crosshairs like never before, as governments swap tariffs and risk a global trade war to ensure that they keep their respective shares of the car industry, even as it undergoes an unprecedented transformation.
And of course, the cars need to be remade, too. Add the impact of electrification to Källenius’s own manifesto for Mercedes-Benz, and this storied marque is likely to change more in the next decade than it did in the previous 138 years. “It’s a once-in-a-century transformation,” he says. “We are reinventing our original invention.”
So who is the guy steering Mercedes through this tumult? What’s his plan? And what cars will he give us? Källenius has sat for plenty of interviews in his five years as CEO (his second five-year term is set to conclude in 2029), but this is the first time that he has offered anything more. Robb Report was invited to spend the weekend with him in Arjeplog, the tiny northern-Swedish town whose population swells fourfold each winter as the global car industry descends to test its secret new models on the area’s frozen lakes. Spy photographers abound, but to reduce the chance of its future lineup being scooped, Mercedes rents its own private expanse of sheet ice from a local landowner. I watch Källenius as he test-drives the electric G at his empire’s oddest and most northerly outpost, meets local staff and records social-media footage. He drives some other, more secret new electric AMGs that I am definitely not allowed to see, whose debuts are much further off and which, when not on the ice, remain hidden beneath their heavy covers outside the workshop.
Courtesy of Mercedes-Benz
Källenius has a reputation for being fearsomely intelligent, rational and efficient, but also not the type of hyper-alpha asshole who too often comes to lead a carmaker. Over the weekend, I see that sharpness not just in the logic of his answers, but in the nuance of the English prose, as perfect as his German, in which he delivers them.
I’m not sure I’d want those piercing blue eyes and that high-wattage intellect turned on me in a meeting if I didn’t have my numbers straight, but his non-asshole character dominates. It comes through in the easy egalitarianism he displays with the engineers in the workshop, or how he notices and thanks waitstaff, or the way he’s enjoying a casual dinner and a beer with a long table of employees of all stripes when I first arrive at the unglamorous Silverhatten hotel where he’s staying—a glorified bunkhouse for the United Nations of engineers and test-drivers who flock here. This is clearly a leader who sees the obligations of his office as clearly as its privileges: an attitude underpinned by a natural Nordic modesty and reserve.
Courtesy of Mercedes-Benz
“I guess your personality is something that forms in younger years, and I’m not sure you can fundamentally change it,” he tells me over coffee one morning. “There is a Swedish core in the way I act, and maybe most Swedes are not kick-the-door-down types. I believe this should be true for anybody who is at Mercedes or has the privilege to lead Mercedes: We are custodians of that star for a brief moment. It’s my job to hand it over safe and in better condition. The person is not the brand.”
Perhaps not, but the brand will look very different by the time this person is done with it in 2029. And you can add loyalty to that list of his qualities: Källenius has never worked anywhere else, having joined Mercedes-Benz in 1993 straight out of the Stockholm School of Economics, where he founded an American football team called the Traders, for which he was captain of the offense. True to form, he studied tapes of the Chicago Bears and New England Patriots in order to write the team playbooks. At Mercedes, he was a finance guy at first; an early posting took him to Alabama, to help set up the Mercedes factory in Tuscaloosa, where he became—and remains—a Crimson Tide fan.
In 2003, at the age of just 34, he was put in charge of the Mercedes-Benz SLR McLaren supercar project; two years later, he was given control of Mercedes-Benz High Performance Powertrains, the firm’s in-house Formula 1 engine-maker. After a year as vice president and CEO of Mercedes-Benz US International back in Tuscaloosa, he was recalled to Germany in 2010 to become vice president and managing director of AMG, Mercedes’s high-performance road-car division. Then came two board positions to prove his breadth of ability—sales and marketing, followed by research and development—before he ascended to the top job in 2019 at the age of 50.
The electric G-Class we’re about to drive together (now officially if awkwardly named the “G580 with EQ Technology”) is a neat encapsulation of many of the things Källenius has tried to do at Mercedes. First, it’s an EV, which fits his initial plan to make everything electric—“where market conditions allow”—by 2030. Second, it’s expensive, with a starting price in the US of $161,500 (around $257,000, though likely to cost more in Australia). Another critical if controversial part of his manifesto is to shift Mercedes upmarket; he spun off the truck business early and is currently in the process of dropping high-volume, low-margin models including the A- and B-Classes. And lastly, he wants new models to still feel like Mercedes vehicles, even if the design that underpins them is radically different from what came before. And the G-Wagen—with its gloriously anachronistic overengineering that you can feel and hear every time you clunk a door shut—epitomises the Mercedes ethos whether the vehicle is gas or electric.
Other new Mercedes EVs go much further in their innovation, gaining greater advantage from their electric drivetrains given that they were designed as EVs from the outset. They use Mercedes’s new MB.OS operating system with built-in AI and receive fresh design cues inside and out—not least the mad, vast, almost full-width hyperscreen user interface—rather than the same upright, rectilinear lines first sketched out to suit the needs of farmers and soldiers when the G-Class was introduced 45 years ago.
But as shorthand for old Merc meeting new, the electric G is perfect, and it’s pleasing to be driven in it by the CEO on whose watch it was conceived and executed. “Yes, this is an electric G,” he says as he drifts it across the glassy frozen lake, “but it’s 100 percent G. The most important box for any G-Class to tick is the Schöckl mountain in Austria, to earn that Schöckl-proven plaque they all have. I did five trips up and down it in the electric G in the autumn, and not only can it do the Schöckl, I felt it could do the Schöckl best of all.”
His stints at AMG, in Formula 1, and with McLaren have turned this “spreadsheet guy” into a skilled driver, though most Swedes seem to have the ability to safely slide a car on ice coded into their DNA. Even with the G sideways at around 110 km/h, a plume of snow and ice billowing high behind it, Källenius has enough spare mental-processing capacity to adjust the screen settings while telling a funny story about the very first time an electric G even crossed his mind.
He was at the Detroit Auto Show in 2018, when the company was first showing the revised G-Class. Arnold Schwarzenegger came to the unveiling and asked Källenius’s predecessor, Dieter Zetsche, if an electric version was in the cards. “Dr. Zetsche said, ‘Yes, of course,’ Källenius recalls. “I was head of R & D at the time, and one of my colleagues turned to me and said, ‘Do we even have an electric G in the plan?’ I said that I guessed we did now.”
Those less keen on electric cars than Arnie and Ola might be pleased by the fact that the ambition to be battery-only by 2030 has fizzled fast. Mercedes now predicts that EVs and plug-in hybrids will account for only half of its sales by the late 2020s, and the company is refreshing its range of gas engines to keep them relevant and selling deep into the 2030s. This is a systemic issue and no reflection on Mercedes products; Källenius has always averred “where market conditions allow”, and market conditions currently don’t. But the retreat is still slightly awkward.
Courtesy of Mercedes-Benz
“The early adopter phase is over,” he tells me. “Now we need to convince every customer. I think it would be a mistake to say, ‘Okay, electric is growing a bit slower, let’s sit back, wait, and not do anything.’ Because if you put product into the market that is so convincing that most customers go, ‘Yeah, maybe I didn’t have iPhone 1, but iPhone 4 looks pretty good,’ you can get very quick, even exponential growth. And if you were the one that said, ‘I’m not going to set sail here; let’s wait and see what the weather does,’ all the other boats would be out on the ocean, and you’d miss the race.”
But if buyers are going to be sold on EVs by the technology rather than by brand power, what does Mercedes’ 138 years of history count for? With customers attracted to new EV marques that are able to innovate unconstrained by precedent—and one of those brands having a market cap 7.5 times that of Mercedes, despite selling a few hundred thousand fewer cars per year—does heritage become a liability rather than an asset?
“We also do unconventional things,” Källenius insists. “With blow-your-mind–type features like the crazy hyperscreen in the EQS and the EQE, a lot of people are looking at Mercedes who perhaps didn’t look before. We are one of the biggest automotive sponsors in e-sports. Formula 1 is off the charts; 53 percent of F1 fans are between 15 and 35, and 37 percent are women. When we do crazy things like the G-Class collaborations with Moncler or the late Virgil Abloh, you go beyond the traditional auto crowd to one that buys from other luxury brands. My test is if one of my kids sends me a picture and goes, like, ‘Dad, what is this?’ I got their attention.”
I wonder how the former finance guy now handles running one of the world’s great luxury brands and to whom he looks for inspiration. He acknowledges that he meets with Bernard Arnault at LVMH and Jean- Frédéric Dufour at Rolex but is coy about the nature of their discussions.
“We also reach out to people in other luxury businesses to understand how they think,” Källenius notes. “I had the good fortune to meet Brunello Cucinelli, and he invited me down to Solomeo, the hamlet which he has helped to restore. It’s one of the most beautiful villages I’ve ever seen. I learned a lot about fabrics, quality, stealth luxury, sometimes not emphasising the brand so much. A fine gentleman like that has a very clear understanding of what luxury means in his business. We brought some secret new-vehicle designs to show him and to get his input.”
Courtesy of Mercedes-Benz
“Maybe you can’t compare a high-intensity, high-engineering, high-capital-investment good like a car to a piece of clothing,” he adds. “They are different businesses. But good chefs eat in each other’s restaurants even though they have a totally different style of cooking, just to see what the others are doing. But when you go back into your kitchen, you’re still the chef, and you put together the recipe.”
I sense a slight frustration from the hyperrational Swede—perhaps that he believes he has gotten the recipe right but has to wait a bit longer for diners’ tastes to catch up. In many cases, judged on any objective criteria, the new Mercedes EVs will be the best cars the company has ever made, including the electric G. The customers, though, are as busy trying to get their heads around this brave new world as the automotive CEOs are.
“This is definitely the most transformative decade since the inception of the company,” Källenius agrees. “But we’ve always done this. The Swabian engineers who founded Mercedes didn’t look at the horseshoe and think, ‘How do we make this lighter to make the horse run faster?’ They wanted to get the horse out of the equation and do something new. That attitude hasn’t changed. We’ve always looked through the windscreen, not in the mirror.”
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Men at Play
Two restless entrepreneurs build a Belizean island paradise especially for those “aha! moments”.
Though he’s supposed to be in what he calls his “play years” now, Knoxville-based real-estate entrepreneur Steve Hall still finds himself working on vacation. After a trip to Belize, he got the itch to build something new and started meeting with developers. Hall hit it off with David Keener, CEO and owner of Vision Properties, and together they acquired an isolated tract on Placencia Caye, a private island just five minutes by boat from the mainland.
After two and a half years of work, they’ve recently started welcoming guests to Prana Maya, a secluded, wellness-focused retreat that enjoys expansive views of the Caribbean Sea, the island’s lagoon and the Maya Mountains. “We designed everything to inspire people,” Hall says of the property. “Every aspect of the resort is intentional. Every service we offer is designed to create that ‘aha! moment’ that will rock someone’s world.”
The property includes seven three- and four-bedroom villas featuring locally carved wooden doors. The breezy, secluded structures are sited to prioritise views of the water, and each has its own plunge pool. Rooms at the Inn—a collection of 10 airy, light-filled suites—face the ocean. Each guest has an assigned butler, and every bed at the resort is fitted with a custom grounding mat, designed to replicate a connection with nature; some studies suggest they promote mental and physical well-being.
Belize’s tropical landscape is the catalyst for getting outdoors. Its unique saltwater flats give sport-fishing aficionados a bucket-list opportunity: catching what the International Game Fishing Association calls the Grand Slam—permit, tarpon and bonefish—all in one day. So Hall and Keener recruited High Adventure Company, a global outfitter with 30 years of guiding expertise, to take guests on exclusive angling excursions. The resort will also offer cave-tubing, jungle-trekking, zip-lining and diving trips.
Courtesy of Prana Maya
If you’re in search of less rugged activities, head to the spa and wellness centre. The design team placed it on prime real estate: the Inn’s top floor, which has 360-degree water views and 5 m ceilings. Here, you’ll find a yoga studio, five private treatment rooms and a sound-therapy space. You can also enjoy Prana Maya’s private beach, the only sandy stretch on the island that isn’t shared with another property.
At The Grill, the open-air restaurant, executive chef Liesel Kirste cooks with indigenous ingredients—many sourced from the resort’s four-hectare farm. The menu includes elevated fare such as locally caught lobster, grilled and served over fresh pasta. Even components of more casual dishes are made from scratch: at the Island Club—with its outdoor kitchen, lawn games and forthcoming palapa-shaded pickleball court—the ketchup and mayonnaise are made in-house. That gives the culinary team the flexibility to design a bespoke menu, upon request, to suit your nutritional needs.
Ultimately, Prana Maya is the expression of a million small details (down to the reef-safe spa products, curated by a Belizean supplier) and the location’s natural majesty. “When you get out to the island site, see the spectacular views of the Caribbean, turn another direction and see the beauty of the Maya Mountains, it is such an awesome and almost overwhelming feeling,” Hall says. One he is determined to share with everyone who visits.
Top image: Benedict Kim/Courtesy of Prana Maya
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How to Use Your Dress Watch to Nail Casual Style This Autumn
The dress watch is back and more laid-back than ever. Here’s how to rock your Cartier and Piaget pieces with casual looks
After the seemingly never-ending hype around steel sports watches, dress watches have been making a comeback. But it’s not just the average 42 mm dress watch that’s sparking interest (although, those too, are in the running), but also funky vintage diamond-accented timepieces or small-sized, almost feminine pieces are trending. Recently, actor Paul Mescal was spotted on the red carpet of the Annual Academy Museum Gala wearing a Cartier Tank Mini with his tux, while sports legend Dwyane Wade wore a 28 mm diamond Tiffany & Co. Eternity watch with his black tie ensemble to the same event. While these guys were wearing dress watches in their intended setting, here we show you how to make a dress watch work for casual weekend wear too.
Try dabbling in unexpected pairings like an army green Ghiaia safari jacket with a vintage Chopard Happy Diamonds timepiece or Breguet Classique Ref. 7147 (the ultimate dressy timekeeper) with a Louis Vuitton sweatsuit and a Brioni overcoat. Anything goes these days and the more unexpected the timepiece, the stronger the statement. It’s good news all around—for your wardrobe and your investments in the vault.
Above: Blancpain 39.7 mm Villeret Ultraplate in 18-karat red gold, $69,675; Tod’s faux-shearling and denim jacket, $5,6859; Tom Ford cashmere and silk turtleneck, $2,535.
PHOTOGRAPHED BY MATALLINA. WATCH EDITOR, PAIGE REDDINGER. FASHION DIRECTOR, ALEX BADIA. STYLE EDITOR, NAOMI ROUGEAU.
Jaeger-LeCoultre 40 mm Reverso One Duetto Jewellery in 18-karat pink gold and diamonds, $79,560. Right: Chopard 32 mm vintage Happy Diamonds in 18-karat white gold and diamonds, $19,930, analogshift.com; Ghiaia cotton safari jacket, $1,426; Eton cotton T-shirt, 358; Hermès denim trousers, $1,674.
Audemars Piguet 34 mm vintage automatic ultrathin watch in 18-karat white gold and diamonds, $9,300, classicwatchny.com. Right: Cartier 41.4 mm Tortue in platinum, $35,600, limited to 200; Gabriela Hearst hand-knit cashmere sweater, $2,500; Officine Générale cotton-poplin shirt, $315.
Breguet 40 mm Classique Ref. 7147 in 18-karat white gold, $37,468; Brioni wool and cashmere overcoat, $12,233, and silk knit crewneck sweater, $2,224; Louis Vuitton wool track pants, $2,120, and wool hooded jacket, $5,002. Right: Patek Philippe 39 mm Calatrava Ref. 6119R-001 in 18-karat rose gold, $52,791.
Piaget 45 mm Andy Warhol in 18-karat rose gold, $69,198. Right: Rolex 29 mm vintage King Midas Ref. 4342 in 18-karat yellow gold, $28,301, classicwatchny.com; Brunello Cucinelli denim shirt, $1,586; Tom Ford cotton chinos, $1,259; Berluti leather belt, $1,132.
Model: Arthur Sales
Grooming: Amanda Wilson
Senior market editor and casting: Luis Campuzano
Photo director: Irene Opezzo
Photo assistant: Alejandro Suarez
Prop stylist: Elizabeth Derwin
