Rolls-Royce Name Up for Sale: A Twist in the Battle Between BMW and Volkswagen

Strategic Insights -

A landmark twist has emerged in the struggle between BMW and Volkswagen for the highly prized Rolls-Royce name. Volkswagen has taken over the Rolls-Royce Motors factory in Crewe, but despite this, the Rolls-Royce name remains available for sale, with BMW seen as the likely buyer. If Rolls-Royce plc sells the name to BMW, it would allow the German manufacturer to build luxury cars under the Rolls-Royce brand at Rover, potentially in Cowley, Oxfordshire.

Key Takeaways:

  • Rolls-Royce plc still owns the rights to the Rolls-Royce name, which is crucial for the brand's identity and legitimacy.
  • Volkswagen's purchase of Rolls-Royce Motors factory in Crewe does not automatically grant them the right to use the Rolls-Royce name.
  • Rolls-Royce plc has a history of preference for BMW, with which it has an aerospace joint venture, and may sell the name to them rather than negotiate a possible £100 million deal with Volkswagen.
  • BMW's intentions may be shrouded in mystery, with some industry watchers speculating about the company's true motives and potential plans to build a super-luxury model.
  • Rolls-Royce plc claims the right to veto any use of the brand by a foreign owner, following an agreement in 1973 to separate the aerospace and car businesses.
  • Rolls-Royce plc and Volkswagen are disputing the ownership of the Rolls-Royce name in Europe, with both sides claiming rights to use the brand.

Statistics:

  • The Rolls-Royce name is reportedly worth £100 million.
  • The Rolls-Royce Motors factory in Crewe was purchased by Volkswagen.
  • Rolls-Royce plc and BMW have an existing joint venture in the aerospace industry.
  • Rolls-Royce plc terminated an agreement with Vickers, a British company that reneged on a deal to sell Rolls-Royce Motors to BMW.
  • Rolls-Royce plc separated the aerospace and car businesses in 1973, granting them the right to veto any use of the Rolls-Royce name by a foreign owner.

Sources:

  • "Rolls-Royce plc still remains far more enthusiastic about BMW" - A well-informed motor industry source.
  • Mr Kurt Rippholz, a spokesman for Volkswagen in Germany.
  • "We will do everything we can to get the Rolls-Royce name and we will now have to look at negotiations with Rolls-Royce plc" - Mr Kurt Rippholz.
  • Agreement between Rolls-Royce plc and Rolls-Royce Motors (1973).
  • Rolls-Royce plc's claim to own the rights to the Rolls-Royce name.