Bentley Motors and Rolls-Royce Motor Cars

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News of September 04, 2002

Bentley Motors and Rolls-Royce Motor Cars

Crewe - There are just a few months left to run before the world’s most famous car marques - Bentley and Rolls-Royce - separate after 71 years together. On December 31st 2002, the Rolls-Royce marque leaves Crewe and becomes part of BMW AG; Bentley, owned by Volkswagen AG, remains at the historic Cheshire site.

Since Volkswagen AG bought Rolls-Royce Motor Cars Limited from Vickers in 1998, considerable investment in Crewe and the product line-up has propelled Bentley to a leading position in the rarefied market for high performance, luxury cars. Meanwhile, the company's stewardship of the Rolls-Royce brand, which is held under licence from BMW AG until the end of 2002, has seen the Crewe company launch the Park Ward limousine, a new Rolls-Royce Corniche convertible and a new model year Silver Seraph saloon.

When Crewe relinquishes the Rolls-Royce marque, it will be with sadness, but with the satisfying knowledge that it has nurtured the marque with which it has been involved since 1946, and with which it maintained its standing.

Background to the sale of Rolls-Royce & Bentley marques

On Friday, June 5, 1998 the announcement that Volkswagen AG had won the take-over battle for the ownership of Rolls-Royce Motor Cars Ltd, beating off competition from BMW AG came as some surprise.

The final decision was taken by the shareholders of Vickers plc, owner of Rolls-Royce Motors, at an extraordinary general meeting at which Chairman Sir Colin Chandler announced that 5.1m shareholders had voted in favour of Volkswagen AG and 109,000 against. The meeting had been stormy, with angry outbursts from small investors who wanted to keep the company British.

Volkswagen AG's offer had been the highest on the table - £430m - although the total consideration could be up to £470m to reflect the rise in working capital in the business. The deal meant that Volkswagen AG comfortably beat a £340m bid from BMW.

Following the sale it was necessary to address the issue of the Rolls-Royce name. The marque was then owned by Rolls-Royce Plc, the aero engines group which has strong business links with BMW and had backed its bid. In fact, Crewe had never owned these rights and since 1971 had operated under licence from Rolls-Royce Plc. The final negotiated outcome, agreed with all parties, and was that BMW would acquire the rights to the Rolls-Royce name and other trademarks associated with Rolls-Royce, including the Spirit of Ecstasy. In addition, BMW would continue to supply engines and other components to Bentley and Rolls-Royce at Crewe. From January 2003, Rolls-Royce’s would be built elsewhere by BMW. Of course, none of this affected Volkswagen AG’s ownership of Bentley and the Crewe site.

The future for Bentley & Crewe

Bentley Motors, under the investment plans instituted by its owner Volkswagen AG, has embarked on a fresh chapter of unprecedented expansion. These plans are not only financial - £500 million in product development alone - but include considerable intellectual input, and incorporate the sharing of both companies' experience and expertise.

The world-class new facilities that have resulted from the injection of resources at Crewe are giving full rein to the skills of the Crewe workforce, ultimately to the benefit of all Bentley customers.

From the leading-edge bodyshop, paintshop and assembly line to the IT systems, design studio and test centres, the 21st century facilities that distinguish Crewe today, demonstrate that a commitment to craftsmanship is enhanced by using the latest and best tools for the job.

A key element in Bentley Motors' plans for the future is the launch, within the next two years, of a GT coupé. The GT coupé reflects not only the pure performance and luxury “DNA” of Bentley Grand Tourers from the past, but also the leading-edge design and engineering skills of Bentley in the 21st century.

Bentley & Rolls-Royce - Chronology

1902 Hon. Charles Stewart Rolls starts up C.S. Rolls and Co.
1904 Henry Royce builds his first car and founds Royce Ltd in Manchester.
Charles Rolls signs an exclusive distribution agreement with Royce and Rolls-Royce is founded.
1910 Charles Rolls dies in flying accident.
1919 Walter Owen 'W O' Bentley opens London office to design and build sporting cars. Exhibition chassis shown at London Motor Show.
1921 The first Bentley model, the 3 Litre is built in Cricklewood.
1923 Bentley contests first ever Le Mans 24 hours race and finishes fourth
1924 Bentley wins Le Mans 24 hours race
1927-30 Bentley wins Le Mans 24 hours race four years in a row.
1931 Depression hits Bentley sales and the company goes into liquidation.
A bid by Napier to acquire Bentley is beaten by Rolls-Royce. Bentley production moves to Derby. W O remains with the company as a consultant.
1933 Henry Royce dies.
1946 Production moves from Derby to Crewe. The first car built there is a Bentley Mark Vl.
1952 R Type Continental launched
1971 W O Bentley dies.
1971 Rolls-Royce suffers crippling losses following technical problems with RB211 jet engine. Government rescue plan splits aerospace and
automotive divisions; rights to Rolls-Royce trademark stay with Rolls-Royce Plc. Rights to Rolls-Royce grille and Spirit of Ecstasy belong to Rolls-Royce Motor Cars. Rolls-Royce Motor Cars licenses its name from Rolls-Royce Plc.
1980 Rolls-Royce Motor Cars is acquired by Vickers Plc, a defence and engineering corporation.
1991 Vickers discusses sale of Rolls-Royce Motor Cars.
1992 Rolls-Royce Motor Cars contracts with BMW for supply of air bag systems.
1993 Rolls-Royce in discussions with Mercedes-Benz on engine supply.
1994 BMW and Rolls-Royce reach an agreement for BMW to develop engines for the new line of Rolls-Royce and Bentley cars.
1997 Oct Vickers Plc puts Rolls-Royce Motor Cars up for sale. BMW, in aviation engine joint venture with Rolls-Royce Plc since 1990, is considered the most likely buyer.
1998 Apr Vickers Plc formally accepts £340 million takeover offer by BMW.
VW AG announces better offer.
1998 June VW AG agrees to pay Vickers Plc £430 million for Rolls-Royce Motor Cars including Bentley Motors subject to shareholder approval. VW also agrees to acquire Cosworth Engineering from Vickers Plc for an additional £120 million. Volkswagen AG announces a £500 million product development investment programme for Bentley Motors at Crewe
1998 July Agreement is reached as follows: BMW acquires Rolls-Royce name and logo from Rolls-Royce Plc for £40 million and licenses VW AG to use name to the end of December 2002.
1998 Launch of Bentley Arnage Green Label & Rolls-Royce Silver Seraph
1999 Launch of Bentley Arnage Red Label.
Bentley Motors announces decision to launch new car, codenamed MSB, the first of which is later confirmed as a GT coupé.
2000 Jan New Rolls-Royce Corniche in Los Angeles.
2000 Mar New Rolls-Royce Park Ward launched at Geneva Motor Show.
2001 Bentley returns to Le Mans and takes third place overall.
2001 Last of line series models for Rolls-Royce Silver Seraph announced
2002 Last of line series models for Corniche and Park Ward Announced
2002 Last ever Rolls-Royce (A Corniche) is presented to press on August 30th at the Crewe factory
2003 1 Jan BMW AG assumes the rights to use the Rolls-Royce marque.

(Sept, 2, 2002)

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