Rolls-Royce production at maximum, still can’t meet demand

[Bartek S.]

Rolls-Royce production at maximum, still can’t meet demand

Despite a global downturn in auto sales in general, Rolls-Royce is working at full steam just to meet demand. The Goodwood maker has already added shifts and lengthened working hours, and still production can barely keep up.

New quarterly sales figures released today show Rolls-Royce to be 22% ahead of 2006 sales, month-for-month. In fact, sales have been so brisk that the Phantom Drophead Coupe is backlogged until the end of 2008, while the sedan is sold out until at least second quarter of next year. Total sales for 2006 numbered just 805 cars, but with price tags sometimes reaching US$500,000 or more, and base prices above $300,000, even small volumes generate a lot of revenue. Based on the increase over last year, production should exceed 1000 for the first time in 2007.
Even more amazingly, given the state of the rest of the industry, sales are expected to continue growing, thanks in part to the new coupe to be based on the 101EX concept unveiled at Geneva last year.
Rolls-Royce is looking to meet the intense demand not necessarily by grossly increasing production, but by improving products and adding depth to is model lineup. More changes and plans for expansion at Goodwood are in store, although the company is being coy about specifics for the time being.

 

[EnI]

Yep, and the Phantom coupe is still coming. And the baby RR sedan - its production will be limited to 800 units per year, I've heard. And then the baby coupe & cabrio are also coming in the future.

I can see RR production limited at max 2,500 - 3,000 units per year - all the preserve exclusivity.

 

[LaArtist]

wuut?
wasent sales down in US YTD??

so thats not beacuse there are fewer orders..but its cause RR makes less car than last year??
im confused

Rolls Royce
227
270
-15.9%

 

[EnI]

wuut?
wasent sales down in US YTD??

so thats not beacuse there are fewer orders..but its cause RR makes less car than last year??
im confused

Rolls Royce
227
270
-15.9%

No at all. I guess sales in US are not lower due the demand decrease, but due lower allocations ... on the other hand demand & allocations are increasing rapidly in other markets (eg. China, Russia, Far East Asia, Middle East) where customers are willing to pay much more: ordering bespoke models costing even eg. 1 million US dollars each. Therefore also RR give more attention to those markets than to US market, I guess. Giving less allocations to US market this year. Get it? Allocation migrations.




As you can see Drophead is sold out for the next 15 months, and Phantom at least for the next 6 months. And the new orders are still coming!

 

[LaArtist]

^ohh so they are just sending their cars elsewhere than the US..
gotcha

 

[bmer]

I knew Rolls was doing fine but I didn't know it was this fine.

Edit: This is from the Global sales thread:

Rolls-Royce: 120 (+60,0%) ... YTD 579 (+21.9%)

 

[Deleted member 25]

BMW AG sure knows its stuf when it comes to reviving and expanding brands.

 

[Tarek]

World is suffering from poverty and RR is sky high,what a world

 

[PanterroR]

BMW AG sure knows its stuf when it comes to reviving and expanding brands.

They simply know thier $h!t.

 

[rev]

If Mercedes also knew their $h!t, Maybach wouldn't be in such a trouble. Anyway, congrats to RR for their success.

 

[PanterroR]

I guess we can conclude they're dumb then!

 

[SDNR]

Amazing.

When you really analyze it, this is nothing short of miraculous. When BMW innitially took over Rolls-Royce many cynics said the Germans would never do it justice; then, when the Phantom was first launched, everyone took a deep breath and looked in horror at it -- paused, then started to realize that this is what a real Rolls-Royce should be.

It is only natural that we were taken by surprise, after years of being served up over-rated assemblages of antiquated rubbish, engineered with technology procured from forgotten civilsations, and all lovingly put together in an old Art Deco factory at Crewe -- how charming ...but clearly destined for nothing.

The Phantom is a miricle in itself: how on earth, in a carbon-obsessed, economically uncertain, politically correct world, can a vehicle that looks like a Kenworth truck crossed with a Cartier boutique and consuming fuel like an alcoholic in a brewery, possibly be selling so well?

I think this is fantastic news for BMW and Rolls-Royce. Well done.

 

[Merc1]

Amazing post Rob.

BMW has clearly proven 2 things. For one they know how to understand a captive brand, seemingly better than anyone else. Ford, GM, and even VW don't manage their capative brands as well as BMW manages Mini and Rolls-Royce. Secondly they seem to be able to translate/engineer this directly into the product. Stunning, IMO.

VW doesn't do this as well IMO simply because of the blantant VWness in various Bentleys that I so can't stand. They have however performed brilliantly with Lamborghini and the older Arnage-based Bentleys so there is something for everyone.

If only BMW had bought Aston-Martin.

M

 

[sif]

Re: Rolls-Royce production at maximum, still can’t meet demand

Amazing post Rob.

BMW has clearly proven 2 things. For one they know how to understand a captive brand, seemingly better than anyone else. Ford, GM, and even VW don't manage their capative brands as well as BMW manages Mini and Rolls-Royce. Secondly they seem to be able to translate/engineer this directly into the product. Stunning, IMO.

VW doesn't do this as well IMO simply because of the blantant VWness in various Bentleys that I so can't stand. They have however performed brilliantly with Lamborghini and the older Arnage-based Bentleys so there is something for everyone.

If only BMW had bought Aston-Martin.

M

100% agreed, I was amazed (in a good way) when my uncle said he had sold his E60 M5 for a Continental GT, but in person it is such a flawed car. Take the centre console for example: large parts of it are lifted from the A8, a car that starts around one third of the price of the Bentley. Now whilst the Audi parts bin might be the best in the business, a brand such as Bentley deserves its own bespoke pieces. Even the keyfob is the generic VAG one, you get the same one with a Golf for god's sake!

Whereas if you look at the Mini, BMW made bespoke parts or gave it items from more expensive cars (like the 1er and 3er). Because Bentley will sell this car to anyone (they sell as many CGT's as Ferrari make cars full stop) they have become a symbol for the nouveaux-riche and I feel, under VW's watch, tarnished the exclusive image of the car as well as the brand. Rolls-Royce on the other hand, are being beautifully managed and BMW have once again made them into the best cars in the world, true successors to the Silver Cloud and the Phantom IV/V IMO.

 

[klier]

... on the other hand demand & allocations are increasing rapidly in other markets (eg. China, Russia, Far East Asia, Middle East) where customers are willing to pay much more: ordering bespoke models costing even eg. 1 million US dollars each. !

That is so funny. BMW sells car for 1,000,000 and makes a huge (probably)profit on them.
VW AG sells a car over 1,000,000 and, well, it costs at least three times as much to make

Nice business model for investors

Edit; and VW fans, please don't come with this "but VW doesn't do Formula 1" story....we all know an F1 car is in total 16.4 times as advanced as the Veyron Ask Imhotep

 

[450SEL6.9]

That is so funny. BMW sells car for 1,000,000 and makes a huge (probably)profit on them.
VW AG sells a car over 1,000,000 and, well, it costs at least three times as much to make

Nice business model for investors

Haha, good point. However, they probably justify the loss by claiming that it helps *cough cough* brand value *cough*. So many companies these days justify spending massively on advertising and celebrity product associations because they claim it builds brand value.

The Phantom is a miracle in itself: how on earth, in a carbon-obsessed, economically uncertain, politically correct world, can a vehicle that looks like a Kenworth truck crossed with a Cartier boutique and consuming fuel like an alcoholic in a brewery, possibly be selling so well?

The economic uncertainly doesn't apply to households buying Phantoms. It's selling so well because not only are there more wealthy people in the world, there are more wealthy people willing to buy a Rolls-Royce. In the days of production at Crewe, it was unfathomable for many of today's Phantom owners to be or want to be a Rolls-Royce client. Prior to the nationalization or Rolls-Royce Limited, the company didn't just sell cars to anyone. I've mentioned before that the approval process to get a RR in Hong Kong, even into the early-1970s, was rigorous.

 

[SDNR]

In the days of production at Crewe, it was unfathomable for many of today's Phantom owners to be or want to be a Rolls-Royce client.

I guess in the days of production at Crewe, many of the recent Rolls-Royce clients had not yet made their fortunes.

Prior to the nationalization or Rolls-Royce Limited, the company didn't just sell cars to anyone. I've mentioned before that the approval process to get a RR in Hong Kong, even into the early-1970s, was rigorous.

Interesting, I am not aware they did this ...was it something the Hong Kong importers did? ....doesn't seem very democratic.