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Automobile industry

Rolls-Royce Control Heats Up as BMW and VW Enter the Fray

Strategic Insights

— 1 min read

The acquisition of Rolls-Royce, the British luxury car maker, has become increasingly complicated as German motor manufacturers BMW and Volkswagen have each submitted bids to purchase the company from its parent group, Vickers. BMW's offer, made on Wednesday, is shrouded in confidentiality, while Volkswagen's bid, reportedly worth around £500 million, includes £266 million earmarked for investment in the Crewe plant. Analysts believe Vickers is seeking a sale price between £300 million and £400 million.

Key Takeaways:

  • BMW has made a bid to purchase Rolls-Royce from Vickers, with the offer subject to confidentiality.
  • Volkswagen has also tabled an offer, reportedly worth around £500 million, which includes £266 million for Crewe plant investment.
  • Analysts estimate Vickers is seeking a sale price between £300 million and £400 million.
  • BMW's bid is significant due to its existing business relationship with Rolls-Royce, supplying engines for the Silver Seraph.
  • Japanese motor vehicle exports to Europe jumped 35.4% in February, outpacing exports to the US.
  • European Union officials and Japan's Ministry of International Trade and Industry agree to increase Japan's export quota to the EU in 1998 by 4.76% to 1,167,000 units.
  • The quota boost reflects an expected 2% increase in EU demand for cars and light commercial vehicles this year.
  • Private investors, led by barrister Michael Shrimpton, are also preparing a bid to purchase Rolls-Royce.

Statistics:

  • Japanese motor vehicle exports to Europe jumped 35.4% in February to 127,688 units.
  • US-bound exports were up 7.3% in February to 105,586 units.
  • BMW's expected offer for Rolls-Royce is estimated to be between £300 million and £400 million.
  • Volkswagen's reported offer for Rolls-Royce is around £500 million.
  • The Crewe plant investment included in Volkswagen's offer is valued at £266 million.
  • EU demand for cars and light commercial vehicles is expected to increase by 2% this year.

Sources:

  • "BMW bids for Rolls-Royce", *The Times*, no date
  • "VW's offer for Rolls-Royce is around £500 million", *Bild*, no date
  • "Japanese exports to Europe soar 35.4%", *Financial Times*, no date
  • "EU and Japan agree to boost export quota", *The Guardian*, no date

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