Nothing screams lavish and wealthy as someone who owns a luxury and expensive automobile, and nothing fits rightly into that description more than the automobile giant Rolls Royce. The brand signifies success and luxury. With such a hefty price tag, it is reserved only for the who’s who of the wealthy and influential circles. Let’s know Who Owns Rolls Royce?
Rolls Royce has over 138 dealerships spread over 40 countries. They had a record 5,100 cars sold in 2019 alone, Rolls Royce is one of the most successful luxury cars that money can buy, only if you have that kind of money. Speaking of money, Rolls Royce had experienced a record $5 billion in sales in 2019.
With such hefty financials and astonishing revenue, one must wonder “Who owns Rolls Royce?” We have covered just that in this article!
Owner of Rolls Royce
Currently, Bayerische Motoren Werke AG or more famously known as BMW are the owners of Rolls Royce Motor Company Limited. In 2003, they acquired Rolls Royce after a long tug of war about the rights and licensing with BMW.
Ownership and Licensing Fiasco
The has been quite a speculation on the ownership and acquisition of Rolls Royce which has created controversy over the past few decades. We will try to clarify and explain the ownership in layman’s terms.
In 1980, Vickers acquired Rolls Royce Motors after the financial crumple of their company a few years back. In 1998, after facing losses and a decline in sales, Vickers decided to sell Rolls Royce Motors. The two major competitors rushing in to acquire Rolls Royce were German automobile giants Volkswagen group and BMW. Volkswagen outbid BMW’s offer of £340 million by raising £430 million and gaining control over their main factory and their mascot, which is known as the spirit of ecstasy.
But the rights to the Rolls Royce name and logo were owned by the aero-engine making arm of Rolls Royce, namely Rolls Royce plc. Since BMW had prior business ventures with Rolls Royce plc, the rights and license to their name and logo were sold to them for over £40 million. Funnily, Volkswagen had rights to the mascot, but they lacked rights to the name to make Rolls Royce cars and BMW had the rights to the name but lacked rights for the mascot. Putting the situation in BMW’s favor.
From 1998 to 2002, BMW supplied the car engine and allowed Volkswagen to use the Rolls Royce name and logo. BMW and Volkswagen finally reached an agreement, from 2003, only BMW was given the right to call their automobiles Rolls Royce.
Key Figures at Rolls Royce
Rolls Royce is undoubtedly one of the most successful automobile companies out there. The credit of the success belongs to various people who have worked relentlessly to create history. The dream of these people was to create a legacy and a thriving business that will be known for ages to come. The triumph of Rolls Royce would not be possible without the contribution of the following people.
Sir Henry Royce and Sir Charles Rolls
The company wouldn’t be possible without its namesake creators. Unaware that they would end up creating a legacy and a symbol of success. Sir Henry Royce managed the technical aspects of the company, while Sir Charles Rolls governed the financial department. Together, they were able to turn a small motor company into a leader in the automobile world. Without their vision and relentless attitude, the company wouldn’t be at such great heights in these modern times.
Claude Johnson
Often known as the hyphen of Rolls-Royce name, Johnson was responsible for the initial success of the company. Once the managing director of the company, Johnson was responsible for running the business after the untimely death of Rolls due to an aircraft accident in 1910. He was also responsible for Aero-engines produced by Rolls Royce. They were introduced in 1915. This led to the increase in amounts of chassis and engines produced for aircraft. Johnson was truly a pioneer in the automobile and engineering industry, along with being a great businessman.
Torsten Müller-Ötvös
Torsten Müller-Ötvös is the current Chief Executive Officer (CEO) of Rolls Royce Motor Cars. He was appointed as the CEO in early January of 2010. With over a decade as the CEO, Torsten’s reign has proved to be very essential in the success and handling of the company. He is responsible for the expansion of business, along with the growth in the image of Rolls Royce as a brand and modernization of that brand. His tenure has resulted in over 400% growth in sales. And over 600% growth in China alone.
Before his extensive tenure at Rolls Royce Motor Cars, Torsten had an even longer tenure working at the BMW Group for over 13 years where he worked his way up from Vice President to Senior Vice President of Product Management and aftersales.
Peter Schwarzenbauer
Peter Schwarzenbauer is the head chairman of Rolls Royce Motor Cars along with BMW Motorrad, MINI, and a few other BMW subsidiaries. He has over three decades of experience serving BMW and other premium brands and rising through the ranks, starting as marketing supervisor for the global markets. Schwarezenbauer became a board member in 2013.
Schwarzenbauer is also on the board of directors of Lunewave, which produces lens radar technology useful in automobiles and autonomous vehicles.
History of Rolls Royce
The Beginning
In 1884, Englishman Sir Henry Royce established a mechanical and electrical business. Royce-10 was a two cylindrical car made by him in his factory, in the year 1904. In the same year, Royce was introduced to Charles Rolls, who was the proprietor of C.S. Rolls and Co. Later in the same year, Rolls and Royce agreed to partner together and make four cars.
- 10 Horsepower 2 cylinder model
- 15 Horsepower 3 cylinder model
- 20 Horsepower 4 cylinder model
- 30 Horsepower 6 cylinder model
The aforementioned automobiles were sold at different price points ranging from £395 to £890 ( which adjusted to inflation results to £40,000 and £90,000 respectively) and they would be labeled as Rolls Royces, sold by Charles Rolls.
Formation of Rolls Royce
Rolls Royce Limited was finally formed in the summer of 1906. In mid-1907, Rolls Royce acquired C.S. Rolls and Co. The automobile factory was set up in Derby due to cheap electricity and it was designed by Royce. The factory finally opened in 1908. The same year, they needed more capital for expansion, hence they went public and raised over £100,000 (which adjusted to inflation results to over £12 million). A very gargantuan amount back then as well.
Initial Success and Reputation
While implementing the six-cylinder model, Royce improved the cylinder to increase the horsepower from 30 to 40/50, which was marketed as the best car that money can buy. Also called Silver Ghost, by Claude Johnson, who was the company’s managing director. Johnson was able to convince all the chairpersons including Royce to discontinue all the older vehicles and focus solely on the Silver Ghost. This turned out to be a huge success with over 6,000 units sold. It was responsible for the initial reputation of Rolls Royce.
Venture Into Aero Engines and Further Success
After the success of the Silver Ghost, Rolls Royce decided to diversify by manufacturing aero engines in 1914. Producing the Rolls Royce Eagle which was mounted on Vickers Vimy, aircraft owned by aviators Alcock and Brown, in 1915.
The further years saw the production of many classic and innovative cars such as the Rolls-Royce Twenty, the legendary Rolls Royce Phantom (which is still in production today), and the 20/25 limousine was also designed by Rolls Royce. The Phantom replaced the best-selling Silver Ghost in 1936. It was introduced as Phantom III, the largest pre-war model.
Contribution to the Second World War
Just a few months after the beginning of the Second World War, in 1940, Rolls Royce signed a contract with Packard Motor Company in Michigan for the production of Merlin aero-engines for the United States to fend off the Nazis.
For the Cromwell Tank, a hybrid version of the Merlin engine was designed, namely the Meteor. The Meteor finished work in 1943, at the same time, the work on the eight-cylinder car engine began. Petrol engines became a norm in combat vehicles after the Second World War.
Conclusion
Currently, Rolls Royce is owned by the BMW AG group. He is also known for owning Mini Cooper and Motorrad (Bike department of BMW). Rolls Royce is primarily known for producing a few of the most expensive cars in the world, their roster of luxurious cars includes Rolls Royce Cullinan, Ghost, Phantom, Wraith, and Dawn.
The largely influential and luxurious Rolls Royce has survived the test of time, has seen various owners and acquisitions. The vision of Sir Henry Royce and Sir Charles Rolls has made Rolls Royce what it is today, a symbol of pure and unadulterated wealth. Rolls Royce sets a statement in today’s day and age. A statement that only a very few people can afford to make.
