Business: The Company File
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BMW on a Roller=20
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Rolls-Royce's new model is powered by BMW engines=20
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BMW, the German car giant, has signed a deal to use the Rolls-Royce name
just weeks after losing out in a bitter takeover battle for the luxury car
marque.=20
BMW will make Rolls-Royce cars from 2003 after calling a truce in its
battle with arch rival Volkswagen, who bought the luxury car maker for
=A3479m earlier this month.=20
As part of the shock agreement BMW will continue to supply the Crewe-based
Rolls-Royce Motor Cars with engines until the end of 2002.=20
After that date, VW will call its luxury cars Bentleys, and BMW will be
free to develop its own luxury car using the Rolls-Royce name.=20
"BMW will take over the distribution of Rolls-Royce cars and will continue
production of the Silver Seraph in cooperation with the plant in Crewe and
manufacture additional Rolls Royce automobiles in a newly-built plant in
Great Britain," BMW chairman Bernard Pischetsrieder told a press conference.=
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<Picture><Picture>Steve Taylor, union convenor, on workers' worries at
RRUnion convenor Steve Taylor said that the 2,500 strong workforce was
frustrated by the continued uncertainty over plans for the company,and felt
treated like pawns.=20
Industry analysts suggested that VW had got the worst of the deal. "They
will have to put a lot of expense to nurture the Bentley brand and win
people away from the Rolls-Royce name," commented Jonathon Sotrey of
European Auto Research.=20
Back in the driving seat=20
It was BMW's close manufacturing links with the luxury car maker that
encouraged the German company to believe it would be successful in its bid
to buy Rolls-Royce earlier this year. But it was pipped by rival
Volkswagen, whose higher bid was accepted instead.=20
BMW, who has been making engines for the new Rolls-Royce Silver Seraph
which was launched earlier this year, then carried out its threat to cut
off supply.=20
But there was a long-standing question over the ownership of the brand
name. While the car maker itself was owned by engineering firm Vickers, the
brand had been retained by the aero-engine maker Rolls-Royce plc when the
two companies were separated in the l970s.=20
Brand building=20
Under the terms of the deal, BMW will buy the rights to the famous brand
from Rolls-Royce plc for =A340m and then license them "exclusively and free
of charge" to Rolls-Royce Motor Cars for the next four years.=20
But there is evidence that the bitter battle has already hit sales.
Rolls-Royce said that its sales in the 6 weeks since the VW deal was
confirmed fell by 30%.=20
BMW has already built up a significant manufacturing capacity in the UK by
the acquisition of Rover Cars.=20
VW has also been acquiring other well-known brands. Lamborghini, the
Italian luxury car maker, fell to them earlier this month.
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Casmat van Bloppoel Email:
vanblop@box.nl
Rolls-Royce & Bentley Collector Fax: +31 181
662996
Webmaster "De Mascotte" URL: http://www.mascotte.box.nl
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