BMW's Luxury Car Plans: A Rival to Rolls-Royce?

Strategic Insights -

BMW has threatened to develop its own luxury car if it fails to win the battle for Rolls-Royce, with plans to use its Warwick subsidiary and Hams Hall factory to spearhead the project. The company sees a market for a British-style chauffeur-driven limousine to compete with Rolls-Royce, but the idea remains a back-up plan as BMW still hopes to buy Rolls-Royce from Vickers. Meanwhile, Rover is expected to create 1,000 jobs at its Cowley plant in preparation for the launch of its new model range, the R40, which is aimed at the same market as Jaguar's S-type.

Key Takeaways:

  • BMW plans to develop a luxury car as a rival to Rolls-Royce if it fails to acquire the company, using its Warwick subsidiary and Hams Hall factory.
  • The luxury car would target the top end of the market, with prices ranging from £100,000 to £230,000.
  • BMW sees a market for a British-style chauffeur-driven limousine to compete with Rolls-Royce.
  • Rover plans to create 1,000 jobs at its Cowley plant in preparation for the launch of its new model range, the R40.
  • The R40 is expected to be launched at the Birmingham motorshow in October and will be aimed at the same market as Jaguar's S-type.
  • The R40's production is expected to be at least 120,000 units per year, with the plant potentially handling up to 150,000 units per year.
  • The R40's launch will help lead BMW's return to the American car market, following the Daimler-Chrysler merger.

Statistics:

  • £400 million: The budget for the development of the luxury car at Hams Hall factory.
  • £100,000 to £230,000: The price range for the luxury car target market.
  • £55 billion: The value of the Daimler-Chrysler merger, which could lead to BMW's return to the American car market.
  • 1,000: The number of jobs to be created at Rover's Cowley plant.
  • 5,000: The total number of jobs created at Rover since the BMW takeover.
  • £430 million: The bid price offered by Volkswagen for Rolls-Royce.
  • £340 million: The bid price offered by BMW for Rolls-Royce.
  • £90 million: The difference between Volkswagen's and BMW's bid prices.

Sources:

  • "BMW threat to Rolls-Royce rivals' Rolls-32-BMW's Rolls plan." The Birmingham Post, date unknown.
  • "BMW to create 1,000 jobs at Rover's Cowley plant." The Birmingham Post, date unknown.
  • "Rover to produce 120,000 R40s per year." The Birmingham Post, date unknown.
  • "BMW to return to American car market." The Birmingham Post, date unknown.
  • "BMW's Daimler-Chrysler merger plans." The Birmingham Post, date unknown.