BMW Acquires Rights to Rolls-Royce Name for Luxury Car Business

BMW has announced it will launch a new luxury car business using the iconic Rolls-Royce name in the UK. The decision comes after BMW struck a deal with rival Volkswagen, which acquired the Rolls-Royce Motor Cars brand earlier this year but will rebrand it as Bentley Motor Cars from 2002. BMW has purchased the rights to use the Rolls-Royce name from Rolls-Royce plc for $40 million, settling a long-standing dispute over the brand's use on luxury cars.

Key Takeaways:

• BMW acquired the rights to use the Rolls-Royce name from Rolls-Royce plc for $40 million, effectively ending a dispute over the brand's use on luxury cars.
• BMW was outbid by Volkswagen in the original sale of Rolls-Royce Motors, with Volkswagen paying $430 million to acquire the brand.
• The agreement includes a clause where BMW will supply engines and components to Rolls-Royce Motor Cars until the name change comes into effect in 2002.
• Rolls-Royce plc chairman Sir Ralph Robins praised the agreement as an "Anglo-German success" and welcomed BMW's role as custodian of the Rolls-Royce brand for luxury cars.
• Rolls-Royce was formed in 1906 by Henry Royce and Charles Rolls, and the motors business was split from the aero-engine business in 1971.

Statistics:

• BMW paid $40 million for the rights to use the Rolls-Royce name.
• Volkswagen paid $430 million to acquire the Rolls-Royce Motors brand.
• Rolls-Royce Motor Cars will be rebranded as Bentley Motor Cars in 2002.
• 90% of Vickers shareholders voted in favor of the Volkswagen bid to acquire Rolls-Royce Motors.

Sources:

• [BMW press release, paragraphs 1-2, 6]
• [Volkswagen bid announcement, paragraph 1, 3]
• [Rolls-Royce plc statement, paragraph 1, 3]
• [The Times, "Volkswagen wins bid for Rolls-Royce" (undated)]
• [Investors Chronicle, "Vickers shareholders back Volkswagen bid for Rolls-Royce" (September 1998)]