Volkswagen Launches Fresh Bid for Rolls-Royce Motors Amid Rival BMW's Pursuit

Strategic Insights -

Volkswagen has given the green light for managers to launch a fresh bid for Rolls-Royce Motors, following a pitch presentation at the company's headquarters. The supervisory board was won over after being treated to a test drive of the Rolls-Royce Seraph, with the bid expected to value Crewe-based Rolls-Royce Motors at around £400 million. The offer puts VW head-to-head with rival BMW, which has already tabled a £340 million bid for the British company. The bid is seen as a significant move, with VW looking to expand its luxury car portfolio.

Key Takeaways:

  • Volkswagen's supervisory board has given the go-ahead for managers to launch a fresh bid for Rolls-Royce Motors.
  • The bid is expected to value Crewe-based Rolls-Royce Motors at around £400 million, with the final price potentially higher.
  • The offer pits VW against rival BMW, which has already tabled a £340 million bid for the British company.
  • Rolls-Royce Motor Cars' chief executive, Graham Morris, expressed optimism about reaching a deal with BMW by April 30, when the 30-day period of exclusive talks ends.
  • BMW remains confident in its takeover of Rolls-Royce, with a spokesman saying "nothing changes" and that the company will increase production if the deal goes through.
  • Volkswagen group's first-quarter net profit doubled to £115 million, with production rising 11% to 1.153 million units and deliveries increasing 4.3% to 1.079 million.
  • Volkswagen has hired Panmure Gordon as its stockbroker in London in preparation for the bid.

Statistics:

  • Volkswagen's first-quarter net profit doubled to £115 million.
  • Production rose 11% to 1.153 million units.
  • Deliveries increased 4.3% to 1.079 million.
  • Sales rose 23% to £10 billion.
  • North American deliveries rose 45.7% to 81,000 units.
  • Asian deliveries dipped 15.6% due to a slowdown in the Chinese economy and weakness in the Japanese market.

Sources:

  • "Volkswagen gives the go-ahead for Rolls-Royce bid" by Reuters.
  • "BMW confident of takeover despite Volkswagen's new bid" by Reuters.
  • "Volkswagen Group's Profit Tops Forecast" by Bloomberg.
  • "Panmure Gordon to advise Volkswagen in Rolls-Royce bid" by Reuters.
  • "Volkswagen's Q1 Net Income Almost Doubled" by Automotive News Europe.