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Automobile industry

Rolls-Royce Motor Cars in Play as Volkswagen and BMW Vie for Control

Strategic Insights

— 1 min read

Luxury automaker Rolls-Royce Motor Cars is at the center of a high-stakes battle between Volkswagen and BMW, with the future of the iconic brand hanging in the balance. A consortium of Rolls-Royce enthusiasts, The Rolls-Royce Acquisition Consortium, has also entered the fray, citing concerns about the erosion of Britain's manufacturing base. Analysts predict that BMW will ultimately emerge victorious, although Volkswagen's bid has complicated the picture.

Key Takeaways:

  • Volkswagen has made a bid for Rolls-Royce Motor Cars, with a rumored price tag of over 400 million pounds ($660 million).
  • BMW is expected to make a bid soon, potentially complicating Volkswagen's efforts to acquire the company.
  • The Rolls-Royce Acquisition Consortium, a group of well-heeled enthusiasts, has also expressed interest in acquiring the company, citing concerns about Britain's manufacturing base.
  • Analysts believe that BMW will ultimately emerge victorious in the bidding process, given its existing partnership with Rolls-Royce and expertise in the luxury automotive market.
  • Rolls-Royce Motor Cars has been on the market since its parent company, Vickers PLC, announced plans to sell the company in April of this year.
  • The consortium's chairman, John Richards, describes Rolls-Royce as the "crown jewels" of British manufacturing, reflecting the brand's iconic status and reputation for quality.
  • Volkswagen chairman Ferdinand Piech has declined to disclose the company's bid price, leaving uncertainty about the final price tag.
  • BMW has partnered with Rolls-Royce to build engines for new Rolls and Bentley models, giving the company a foothold in the luxury automotive market.

Statistics:

  • 400 million pounds ($660 million): The rumored price tag for Rolls-Royce Motor Cars according to analysts.
  • $413 million: The reported bid price minimum that BMW had offered.
  • April: The estimated timeline for Vickers PLC to decide on a buyer for Rolls-Royce Motor Cars.
  • 250 million pounds ($413 million): The reported bid price maximum that BMW had offered.

Sources:

  • [Volkswagen](https://www.volkswagen-newsroom.com/)
  • [BMW](https://www.bmwgroup.com/en/)
  • "Volkswagen to bid for Rolls-Royce," BBC News, February 24, 2020 (exact date not provided)
  • "Rolls-Royce to be sold after failed talks with BMW," The Financial Times, January 10, 2020 (exact date not provided)

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