Volkswagen Challenges Rolls-Royce with Affordable Bentley Plans

Volkswagen (VW) plans to purchase Rolls-Royce Motors' Bentley marque and develop an ultra-low-cost Bentley, priced between £60,000 to £70,000, to compete directly with Daimler-Benz's S-class limousines. The move is part of VW's bid for Rolls-Royce Motors, which faces opposition from BMW and Rolls-Royce plc. The cheapest Bentley currently on the market is the £111,155 Brooklands. The acquisition will see VW's output rise fivefold to 10,000 cars a year, while BMW's rival bid aims to increase output to 6,000 cars a year. VW's determination to secure Rolls-Royce Motors has been reinforced by Daimler's planned merger with Chrysler, which will create a new player in the European volume car market.

Key Takeaways:

VW plans to develop an ultra-low-cost Bentley, priced between £60,000 to £70,000, to compete with Daimler-Benz's S-class limousines.
The cheapest Bentley currently on the market is the £111,155 Brooklands, with the new affordable Bentley planned to sell in the same price range as the S-class (approximately £60,000-£70,000).
VW's acquisition of Rolls-Royce Motors is expected to increase output fivefold to 10,000 cars a year, while BMW's rival bid aims to raise output to 6,000 cars a year.
VW faces opposition from Rolls-Royce plc, which owns the Rolls-Royce brand and trademark, and will likely demand an updated licensing deal and substantial payment for use of the name.
VW may face a protracted European court battle or purchase the company without the Rolls-Royce name, raising the possibility of a vehicle with the Flying Lady mascot not being called a Rolls-Royce.

Statistics:

Planned output for VW-owned Rolls-Royce Motors: 10,000 cars a year (5-fold increase)
Planned output for BMW-owned Rolls-Royce Motors: 6,000 cars a year
Cheapest Bentley on the market: £111,155 Brooklands
Planned price range for ultra-low-cost Bentley: £60,000 to £70,000
Daimler's planned merger with Chrysler: $92 billion (approximately £56 billion)

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