WEBVTT - Rolls-Royce CEO Chris Brownridge Talks North America Sales, EV Future

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Rolls Royce Motor Cars didn't sell more vehicles last year,

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<v Speaker 2>but it made more money. At five seven hundred and twelve.

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<v Speaker 2>BMW's pinnacle luxury car makers sold about three hundred fewer

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<v Speaker 2>total units than each of the two previous years, but

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<v Speaker 2>at a higher average price on a ten percent jump

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<v Speaker 2>and bespoke deliveries. As a result, Rolls Royce is now

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<v Speaker 2>investing an additional three hundred and seventy five million dollars

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<v Speaker 2>and it's goodwood manufacturing facility to meet rising demand for

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<v Speaker 2>personalization that can drive individual transactions deep into seven figures.

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<v Speaker 2>Joining us now is Chris Brownridge, the CEO of Rolls

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<v Speaker 2>Royce Motor Cars. And Chris, this is I think a

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<v Speaker 2>fascinating strategy move that you have made with the company,

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<v Speaker 2>and it goes beyond just sort of paint to sample

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<v Speaker 2>or picking a different leather. Tell us about some of

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<v Speaker 2>the personalizations that people are doing. Well.

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<v Speaker 3>Matt, first of all, good morning, and thank you for

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<v Speaker 3>inviting me onto your show. Last year was a tremendously

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<v Speaker 3>successful one for Rolls Royce and you know that at

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<v Speaker 3>Rolls Rice we make handmade bespoke luxury goods for our

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<v Speaker 3>clients and we strive to deliver them an extraordinary experience.

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<v Speaker 3>And our bespoke collective team is right at the heart

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<v Speaker 3>of our business. What we aim to do is create

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<v Speaker 3>a masterpiece for each client and the investment that we've

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<v Speaker 3>announced today is all about facilitating that through creating the

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<v Speaker 3>capacity and the space within our manufacturing facility at the

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<v Speaker 3>home of Rolls Royce in Goodwood, so that we can

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<v Speaker 3>deliver those projects.

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<v Speaker 2>So, but what your customization goes beyond the customizations of

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<v Speaker 2>almost any other car maker I can think of, certainly

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<v Speaker 2>any one that produces in the hundreds or thousands of

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<v Speaker 2>cars a year. What kind of investment are you making

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<v Speaker 2>and what is it going to allow you to do

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<v Speaker 2>to these cars?

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<v Speaker 3>Well, mat Rolls Royce bespoke means something very profound. It

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<v Speaker 3>can be something as simple as having a hand painted

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<v Speaker 3>coach line on your Rolls Royce that perhaps has your

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<v Speaker 3>family motif on the outside of your motor car, or

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<v Speaker 3>perhaps embroidered in a head restraint. It could be something

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<v Speaker 3>more profound, celebrating the relationship you have with your partner,

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<v Speaker 3>where the headliner on the interior of the car which

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<v Speaker 3>uses fiber optic cables to recreate a constellation of stars.

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<v Speaker 3>It could show the constellation on the night that you

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<v Speaker 3>met in the location that you met, or it could

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<v Speaker 3>be something much more profound whereby For example, last year

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<v Speaker 3>we made a car for a very famous client where

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<v Speaker 3>the interior of the car used silk paneling in the

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<v Speaker 3>headlining and the doors where we embroidered a particular flower

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<v Speaker 3>and hand painted that flower and created a facier panel,

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<v Speaker 3>a dashboard panel inlaid with mother of pearl because it

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<v Speaker 3>reminded them of the different homes they own. So the

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<v Speaker 3>diversity is extraordinary, and this extension will mean that we've

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<v Speaker 3>got more capacity and space to deliver these projects because

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<v Speaker 3>they are very time consuming. And it comes hand in

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<v Speaker 3>hand with us expanding our network of private offices. Now

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<v Speaker 3>at Goodwood, the home of Rolls Royce, our clients come

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<v Speaker 3>to us and they meet the design team, but not

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<v Speaker 3>every client can come to us, so we've opened private

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<v Speaker 3>offices in Dubai and Shanghai, in Seoul and of course

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<v Speaker 3>in New York, where our designers are working nearer to

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<v Speaker 3>the clients and they can bring their ideas to life

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<v Speaker 3>so effectively. This network of private offices is driving a

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<v Speaker 3>growth in the demand for these wonderful creations and that's

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<v Speaker 3>why we're preparing the facility in Goodwood.

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<v Speaker 4>What's your fastest growing market right now? It's interesting to

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<v Speaker 4>hear more about the private offices. Certainly the Middle East

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<v Speaker 4>is an area that a lot of investors have been

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<v Speaker 4>looking at for growth. But is there one area more

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<v Speaker 4>than others that you see more potential and what are

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<v Speaker 4>the demographic striving that growth.

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<v Speaker 3>Well, the wonderful advantage Rolls Royce has is it's got

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<v Speaker 3>a heritage of one hundred and twenty years and it's

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<v Speaker 3>famous throughout the world and our business is present throughout

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<v Speaker 3>the world, so we have clients in every corner of

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<v Speaker 3>the world, across every region. Of course, the USA is

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<v Speaker 3>our biggest region and we have a strong client base there,

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<v Speaker 3>but across the world we've seen significant growth in Europe

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<v Speaker 3>and the Middle East and also APAC this year. And

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<v Speaker 3>the great thing is we're seeing in every corner of

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<v Speaker 3>the world significant demand, particularly for our bespoke creations.

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<v Speaker 1>And Chris, I want to talk a little bit about

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<v Speaker 1>the future here. Obviously, when it comes to evs you

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<v Speaker 1>have Specter. It's selling very well. You talk about in

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<v Speaker 1>your release how this manufacturer manufacturing facility will help your

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<v Speaker 1>transition to in all battery future. It's been interesting watching

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<v Speaker 1>the trends though you see hybrid selling very well in

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<v Speaker 1>sort of the normal market, the non luxury market, and

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<v Speaker 1>even in the luxury market. Could a hybrid ever be

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<v Speaker 1>in your future?

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<v Speaker 3>Well, I'll start by talking about our experience with Spector

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<v Speaker 3>this year and now Specters, a super luxury coupe, are

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<v Speaker 3>absolutely stunning motor and in twenty twenty four it was

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<v Speaker 3>the first full year that we were delivering this motor

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<v Speaker 3>car to our clients and it's been a very successful

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<v Speaker 3>year for Spector. In fact, it was the second most

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<v Speaker 3>demanded Rolls Rice, which is extraordinary. And what we have

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<v Speaker 3>with spect it's the first Rolls Royce to use a

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<v Speaker 3>very highly developed electric powertrain in a Rolls Royce. And

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<v Speaker 3>our clients have told us that what this does is

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<v Speaker 3>it amplifies all the characteristics that you'd expect of a

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<v Speaker 3>Rolls Royce, the silence, the waft ability, the ease of

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<v Speaker 3>driving and that magic carpet ride. So the feedback that

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<v Speaker 3>the most important group our clients has given us is

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<v Speaker 3>that they think this is a wonderful Rolls Royce and

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<v Speaker 3>with the databack set up, the client's satisfaction with Spectra

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<v Speaker 3>is the highest of any of the motor cars that

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<v Speaker 3>we produce, So that's a really encouraging start. At Rolls Royce.

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<v Speaker 3>We strive for perfection and our power trains are the

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<v Speaker 3>finest for the motor cars that we deliver to our clients.

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<v Speaker 3>Of course, we already have the wonderful V twelve combustion

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<v Speaker 3>engine with Spector, we have our first electric power train,

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<v Speaker 3>and both of them deliver the best possible experience for

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<v Speaker 3>our clients. We wouldn't deviate from that because we always

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<v Speaker 3>want to deliver the best possible solution, and spect has

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<v Speaker 3>told us very clearly that when we combine this new

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<v Speaker 3>technology with a Rolls Rice, we can deliver the best

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<v Speaker 3>car in the world.

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<v Speaker 2>I can confirm that the V twelve is a highly

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<v Speaker 2>enjoyable powertrain. I have not driven the Specter yet, Chris,

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<v Speaker 2>what are are there any holes in your product offering?

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<v Speaker 2>I mean you've got Colinan, which is your best seller,

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<v Speaker 2>the big SUV. Spector, as Katie mentioned, has done very well.

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<v Speaker 2>I tend to prefer Ghost or Wraith more drivers cars.

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<v Speaker 2>Phantom is the one that we're looking at now, well,

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<v Speaker 2>or that's Colnant, that's Colin in Phantom. Is the one

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<v Speaker 2>you want if you've got a chauffeur. Is there anything

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<v Speaker 2>that you need to add to that product offering.

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<v Speaker 3>Well, we have had a very busy year in twenty

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<v Speaker 3>twenty five where we introduced the Specter for the first

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<v Speaker 3>full year, and of course we introduced the cullen And

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<v Speaker 3>Series two and Cullen And Series to Black Badge, and

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<v Speaker 3>also the Ghost Series two and the Ghost Series two

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<v Speaker 3>Black Batge. We've had a very busy year and we

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<v Speaker 3>have a very very strong core product offer and all

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<v Speaker 3>of our motor cars are like a blank canvas for

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<v Speaker 3>the bespoke offer that we provide to our clients. In

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<v Speaker 3>terms of future products, I won't give any secrets away

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<v Speaker 3>right now, but of course there are always exciting things

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<v Speaker 3>that are coming down the line.

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<v Speaker 2>All right, well, I'm excited and that's for sure. Rolls

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<v Speaker 2>Royce really the pinnacle of luxury vehicles worldwide. Chris, great

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<v Speaker 2>to have you on the program. Chris Brown. Next year

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<v Speaker 2>of Rolls Royce Motor Cars on of Course by BMW