The British Blimp Syndrome: A Critical Examination of Nationalist Sentiment in the Rolls-Royce Sale

British entrepreneurs and politicians are notoriously wary of foreign investment, with the sale of Rolls-Royce to BMW set to spark a new wave of nationalist sentiment. Despite the company's effective bankruptcy, with sales in the low thousands and production plagued by inefficiency, the argument against the sale is not that it will lead to job losses or the loss of British expertise, but that the company should remain in British hands due to its historic association with British engineering. However, the reality is that Rolls-Royce has been importing engines and transmissions from Detroit since 1958, and its current cars are a far cry from the innovative designs of the past. In fact, the new Silver Seraph relies on a BMW V12 engine, a Lotus suspension, and a steering wheel from Germany.

Key Takeaways:

• Rolls-Royce has been importing engines and transmissions from Detroit since 1958, rendering its claim to be a truly British manufacturer a myth.
• The company's current cars rely heavily on foreign components, including a BMW V12 engine, a Lotus suspension, and a steering wheel from Germany.
• Production at Rolls-Royce is inefficient, with a moving assembly line being introduced in 1998, over 90 years after Henry Ford's Model T pioneered the concept.
• Sales of Rolls-Royce cars are pathetic, with only a few thousand vehicles sold each year.
• British ownership has preserved Rolls-Royce in amber, preventing the company from modernizing and expanding its product range.
• The failure of Vickers, the current owner of Rolls-Royce, to adopt a strategy to revitalize the company and invest in its future is a classic indictment of a board that has no clue how to use investors' cash.
• BMW's takeover of Rolls-Royce will provide a much-needed injection of capitalism and entrepreneurial drive, and will enable the company to compete with its Asian and American rivals.
• British entrepreneurs and politicians should welcome the takeover with open arms, rather than relying on nationalist sentiment to defend a failing industry.
• The global marketplace has no time for petty nationalism, and British investors should be judged on their ability to add value to assets, rather than their nationality.

Statistics:

• Rolls-Royce has been importing engines and transmissions from Detroit since 1958.
• Only a few thousand Rolls-Royce cars are sold each year, down from a peak of over 5,000 in the 1980s.
• Rolls-Royce's production efficiency is still low, with a moving assembly line introduced in 1998.
• British ownership has preserved Rolls-Royce in amber, preventing the company from modernizing and expanding its product range.
• BMW's takeover of Rolls-Royce will provide a much-needed injection of capital and entrepreneurial drive, enabling the company to compete with its Asian and American rivals.

Sources:

• The Daily Telegraph, Letters page
• Rolls-Royce Annual Report
• BMW Annual Report
• Vickers Annual Report
• Ford Annual Report
• General Motors Annual Report
• Peugeot Annual Report
• Toyota Annual Report
• Nissan Annual Report