1 00:00:02,600 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,080 --> 00:00:10,160 Speaker 2: Let's talk about cars right now. 3 00:00:10,240 --> 00:00:14,760 Speaker 3: Rolls Royce sells arguably the world's most luxurious motor cars, 4 00:00:14,920 --> 00:00:18,000 Speaker 3: but they don't want to sell more of them, just 5 00:00:18,360 --> 00:00:21,040 Speaker 3: higher priced versions of each one. In order to do that, 6 00:00:21,360 --> 00:00:24,799 Speaker 3: the Goodwood based manufacturer has opened up a private office 7 00:00:24,920 --> 00:00:28,000 Speaker 3: right here in New York City for its highest network 8 00:00:28,080 --> 00:00:33,120 Speaker 3: clients in America to help design increasingly individual masterpieces. 9 00:00:33,200 --> 00:00:35,279 Speaker 2: As the CEO refers. 10 00:00:34,880 --> 00:00:37,839 Speaker 3: To them, let's bring him in to talk about lifting 11 00:00:38,000 --> 00:00:42,080 Speaker 3: luxury margins and contributing those to parent company BMW. Chris 12 00:00:42,080 --> 00:00:45,319 Speaker 3: Brownridge runs the company now, and he joins us from 13 00:00:45,360 --> 00:00:48,160 Speaker 3: the private office down in the meatpacking district. Chris, great 14 00:00:48,159 --> 00:00:50,080 Speaker 3: to have you on the program. Thanks so much for 15 00:00:50,200 --> 00:00:53,479 Speaker 3: joining us. I wonder if you could start by telling 16 00:00:53,560 --> 00:00:57,520 Speaker 3: us what your goals are in terms of your contributions 17 00:00:57,520 --> 00:01:01,360 Speaker 3: to BMW, in terms of growing margins. What do you 18 00:01:01,480 --> 00:01:04,720 Speaker 3: want to achieve in your say, first couple of years 19 00:01:04,760 --> 00:01:05,240 Speaker 3: as CEO. 20 00:01:06,480 --> 00:01:09,319 Speaker 4: Oh, good morning, Matt, and it's great to be here 21 00:01:09,360 --> 00:01:11,520 Speaker 4: in New York. I'm sitting in our private office and 22 00:01:11,520 --> 00:01:14,959 Speaker 4: that's a great place to start. The whole business at 23 00:01:15,040 --> 00:01:18,280 Speaker 4: Rolls Royce is about creating value for our clients. And 24 00:01:18,480 --> 00:01:21,200 Speaker 4: what we're seeing is increasing demand from our clients for 25 00:01:21,240 --> 00:01:24,920 Speaker 4: more and more bespoke and personal motor cars. And the 26 00:01:24,920 --> 00:01:28,480 Speaker 4: whole private office network that we're setting up is designed 27 00:01:28,480 --> 00:01:31,120 Speaker 4: to really create environment where we can engage them directly 28 00:01:31,560 --> 00:01:35,000 Speaker 4: with our design team and so we see a great 29 00:01:35,040 --> 00:01:38,959 Speaker 4: opportunity and our client feedback about the private office is 30 00:01:39,000 --> 00:01:40,080 Speaker 4: extremely encouraging. 31 00:01:40,360 --> 00:01:43,560 Speaker 3: So you have I believe you have setups like this 32 00:01:43,800 --> 00:01:50,560 Speaker 3: in other hubs in Dubai for example, in Shanghai for example, 33 00:01:51,080 --> 00:01:56,160 Speaker 3: how strong are they in terms of contributing to margin growth? 34 00:01:57,760 --> 00:02:00,840 Speaker 4: Well, the New York Private Office is of a network, 35 00:02:00,880 --> 00:02:03,279 Speaker 4: and as you say, we have a number around the world. 36 00:02:03,560 --> 00:02:06,360 Speaker 4: We started with the home of Ross Rice in Goodwood, 37 00:02:06,480 --> 00:02:08,280 Speaker 4: where our clients would come to us and so they 38 00:02:08,280 --> 00:02:10,360 Speaker 4: could meet the team and we could work with them 39 00:02:10,440 --> 00:02:13,440 Speaker 4: to create their own bespoke rolls RoCE and this is 40 00:02:13,440 --> 00:02:16,360 Speaker 4: a growing aspect of our business. For example, in Shanghai, 41 00:02:16,440 --> 00:02:18,760 Speaker 4: in the first six months of the private office being open, 42 00:02:18,919 --> 00:02:20,880 Speaker 4: we had engagements with more than two hundred clients. So 43 00:02:20,919 --> 00:02:23,840 Speaker 4: it's clearly something that resonates with our target audience. It 44 00:02:23,880 --> 00:02:26,400 Speaker 4: creates a unique experience for them and Chris, I. 45 00:02:26,400 --> 00:02:28,440 Speaker 1: Want to talk about global demand, and but I particularly 46 00:02:28,520 --> 00:02:31,280 Speaker 1: want to talk about Chinese demand because, of course, you 47 00:02:31,320 --> 00:02:33,960 Speaker 1: think about what we've seen out of China this week, 48 00:02:34,000 --> 00:02:38,079 Speaker 1: a big bang of stimulus measures and wildly different industries here. 49 00:02:38,080 --> 00:02:40,800 Speaker 1: But we were talking to the CEO of Pandora, for example, 50 00:02:40,840 --> 00:02:44,720 Speaker 1: who said that they're strong everywhere except in China. 51 00:02:44,840 --> 00:02:45,320 Speaker 2: What are you. 52 00:02:45,360 --> 00:02:47,320 Speaker 1: Seeing when it comes to China when it comes to 53 00:02:47,639 --> 00:02:50,880 Speaker 1: Rolls Royce specifically, well. 54 00:02:50,840 --> 00:02:53,320 Speaker 4: It's clear at the moment in China the luxury industry 55 00:02:53,639 --> 00:02:57,440 Speaker 4: is on some experiencing some more challenging times. But the 56 00:02:57,520 --> 00:02:59,840 Speaker 4: Chinese market is very important to Rolls Royce and that's 57 00:03:00,120 --> 00:03:02,360 Speaker 4: we've invested in it. In fact, we've opened a private 58 00:03:02,400 --> 00:03:04,920 Speaker 4: office in Shanghai because we see a growing number of 59 00:03:05,040 --> 00:03:08,120 Speaker 4: ultra high networth individuals and certainly what we've seen since 60 00:03:08,160 --> 00:03:11,160 Speaker 4: that private office has been open is more profound engagements 61 00:03:11,160 --> 00:03:13,480 Speaker 4: for our clients. You know, It's always been an important 62 00:03:13,480 --> 00:03:15,400 Speaker 4: reason for us, and it will continue to be for 63 00:03:15,480 --> 00:03:17,560 Speaker 4: the future, even. 64 00:03:17,360 --> 00:03:19,440 Speaker 5: If you're looking at the long term in China, Chris, 65 00:03:19,440 --> 00:03:21,560 Speaker 5: what does that mean for a more immediate demand? And 66 00:03:21,639 --> 00:03:24,320 Speaker 5: wondering if this bigger push into the US with this 67 00:03:24,440 --> 00:03:28,160 Speaker 5: New New York office starts to offset any weaknesses you 68 00:03:28,240 --> 00:03:30,200 Speaker 5: might be seeing across the globe. 69 00:03:31,000 --> 00:03:34,000 Speaker 4: Well, Ros Rice is a brand which with a great 70 00:03:34,040 --> 00:03:36,440 Speaker 4: heritage and history, and of course we have clients all 71 00:03:36,480 --> 00:03:40,280 Speaker 4: around the world, and we've seen over many years fluctuations 72 00:03:40,280 --> 00:03:42,320 Speaker 4: in demand in every region of the world. And that's 73 00:03:42,360 --> 00:03:45,680 Speaker 4: the great thing about our business. We're super flexible, super agile, 74 00:03:45,720 --> 00:03:47,560 Speaker 4: and of course we've got clients all over the world, 75 00:03:47,600 --> 00:03:49,720 Speaker 4: so if one region is up, there's always another one 76 00:03:49,720 --> 00:03:51,960 Speaker 4: that may be down. But overall we can balance our 77 00:03:52,000 --> 00:03:54,800 Speaker 4: business really effectively because we're so very agile. 78 00:03:55,160 --> 00:03:58,600 Speaker 3: It does seem like, you know, within luxury, we see 79 00:03:58,800 --> 00:04:02,800 Speaker 3: the lower end kind of struggling the higher end. We 80 00:04:02,840 --> 00:04:06,720 Speaker 3: talk to, for example, executives at Lamborghini and Ferrari and 81 00:04:06,760 --> 00:04:09,080 Speaker 3: they continue to do Gangbuster's business. 82 00:04:09,440 --> 00:04:10,440 Speaker 2: Do you notice a. 83 00:04:10,520 --> 00:04:15,000 Speaker 3: Growth in high net worth individuals? Is that what's powering 84 00:04:15,680 --> 00:04:19,080 Speaker 3: this drive at the top end of luxury, Yeah, very 85 00:04:19,160 --> 00:04:19,520 Speaker 3: much so. 86 00:04:19,800 --> 00:04:22,520 Speaker 4: And in response to the growing demand for our clients, 87 00:04:22,560 --> 00:04:25,520 Speaker 4: we're opening these private offices, but we're also investing in 88 00:04:25,560 --> 00:04:28,919 Speaker 4: the home of Ross Royce. We're expanding our facility there, 89 00:04:29,080 --> 00:04:31,040 Speaker 4: not so we can build more motor cars, but so 90 00:04:31,040 --> 00:04:33,400 Speaker 4: we can build more precious and special motor cars for 91 00:04:33,440 --> 00:04:36,400 Speaker 4: our clients. We need more space for these bespoke commissions, 92 00:04:36,560 --> 00:04:39,040 Speaker 4: and we're certainly seeing over the last years a real 93 00:04:39,120 --> 00:04:44,839 Speaker 4: growth in demand for more personalized and more specific requests 94 00:04:44,880 --> 00:04:47,839 Speaker 4: from our clients. But also what they particularly value is 95 00:04:47,839 --> 00:04:50,200 Speaker 4: the experience that we deliver them, and that's why when 96 00:04:50,320 --> 00:04:53,359 Speaker 4: our clients can't come to Goodwood, Goodwood comes to the clients, 97 00:04:53,360 --> 00:04:55,240 Speaker 4: and that's why we have our private offices. So where 98 00:04:55,279 --> 00:04:57,400 Speaker 4: I'm sitting here in New York, this is a little 99 00:04:57,400 --> 00:04:59,720 Speaker 4: bit of Goodwood. It's like an outpost to where our 100 00:04:59,760 --> 00:05:01,320 Speaker 4: client we'll. 101 00:05:01,200 --> 00:05:03,040 Speaker 1: Talk about some of your new models. Of course, I'm 102 00:05:03,040 --> 00:05:06,000 Speaker 1: thinking about Stepter. It's your new all electric model in 103 00:05:06,040 --> 00:05:08,680 Speaker 1: its first year of deliveries. A little bit of a 104 00:05:08,680 --> 00:05:12,520 Speaker 1: setback here, of course, some recalls in place. What measures 105 00:05:12,560 --> 00:05:15,080 Speaker 1: are you putting in place to deal with that recall? 106 00:05:16,680 --> 00:05:19,360 Speaker 4: So Specter we launched this year and it's been a 107 00:05:19,360 --> 00:05:23,320 Speaker 4: great success for us. Our clients feedback about Specters. They 108 00:05:23,360 --> 00:05:27,080 Speaker 4: absolutely love the way the motorcar drives. It's a super coupe. 109 00:05:27,120 --> 00:05:29,720 Speaker 4: It's absolutely stunning to look at, and it's a great 110 00:05:29,800 --> 00:05:35,080 Speaker 4: palette our canvas for personalization we had this topic in 111 00:05:35,160 --> 00:05:37,040 Speaker 4: terms of the recall. But what we're doing is we're 112 00:05:37,080 --> 00:05:39,280 Speaker 4: handling that as efficiently as possible to make sure that 113 00:05:39,320 --> 00:05:41,800 Speaker 4: our clients are not inconvenience. And our team have done 114 00:05:41,800 --> 00:05:43,560 Speaker 4: a really good job of that, and we're making sure 115 00:05:43,600 --> 00:05:45,720 Speaker 4: that we're quick to respond and we give all our 116 00:05:45,720 --> 00:05:47,360 Speaker 4: clients the reassurance that they deserve. 117 00:05:48,160 --> 00:05:52,680 Speaker 5: Which BMW, Which Rolls Royce vehicles are affected by this recall? 118 00:05:52,720 --> 00:05:54,520 Speaker 5: Of course, we saw their profit warning out by your 119 00:05:54,560 --> 00:05:57,640 Speaker 5: parent company, BMW. Can you give a sense of kind 120 00:05:57,640 --> 00:05:59,040 Speaker 5: of where else the issue lies. 121 00:06:01,080 --> 00:06:05,920 Speaker 4: The topic that we're discussing right now specifically affects Specter 122 00:06:06,080 --> 00:06:08,800 Speaker 4: and only Specter, and in the North America area there 123 00:06:08,800 --> 00:06:11,000 Speaker 4: are six hundred vehicles affected, and we have a pan 124 00:06:11,120 --> 00:06:12,800 Speaker 4: of action for each and every one of them. 125 00:06:13,680 --> 00:06:16,840 Speaker 3: I wonder what new models we can expect in the future, Chris, 126 00:06:16,880 --> 00:06:22,240 Speaker 3: you have, you know on your ice cars twin turbocharged 127 00:06:22,400 --> 00:06:25,400 Speaker 3: V twelve, you know, six point seven liter engine that 128 00:06:25,520 --> 00:06:29,160 Speaker 3: just makes me salivate. Is it possible that that is 129 00:06:29,320 --> 00:06:31,120 Speaker 3: married with electric power? 130 00:06:31,120 --> 00:06:33,520 Speaker 2: Could we see a hybrid in the future for Rolls Royce. 131 00:06:34,520 --> 00:06:36,960 Speaker 4: Well, one of the things that's always true about Rolls 132 00:06:37,000 --> 00:06:39,560 Speaker 4: Rice is that we don't compromise, and with our V 133 00:06:39,640 --> 00:06:42,359 Speaker 4: twelve power plant today in our model range, it's a 134 00:06:42,400 --> 00:06:46,320 Speaker 4: fabulous piece of engineering. And also with spect we've delivered 135 00:06:46,440 --> 00:06:50,000 Speaker 4: a motor car using electrification and again our pliant feedback 136 00:06:50,080 --> 00:06:52,839 Speaker 4: is it's a perfect Rolls Rice. We'll never compromise. We 137 00:06:52,839 --> 00:06:55,520 Speaker 4: always deliver the best possible power train for our clients. 138 00:06:55,800 --> 00:06:57,840 Speaker 4: As for future motor car as well, I wouldn't want 139 00:06:57,880 --> 00:07:00,039 Speaker 4: to give any secrets away right now, but what I 140 00:06:59,920 --> 00:07:02,240 Speaker 4: can tell you is as a very exciting future for 141 00:07:02,360 --> 00:07:03,480 Speaker 4: Rolls Rice, a. 142 00:07:03,560 --> 00:07:05,960 Speaker 1: Very exciting future. You're not going to give away secrets 143 00:07:06,040 --> 00:07:08,919 Speaker 1: right now, but I'm still going to try our clients 144 00:07:09,000 --> 00:07:11,240 Speaker 1: asking for a hybrid. When you think about the Rules 145 00:07:11,360 --> 00:07:14,240 Speaker 1: Royce customer base, are they asking for hybrids? 146 00:07:15,920 --> 00:07:19,160 Speaker 4: Our clients, they tell us they love the V twelve 147 00:07:19,200 --> 00:07:21,400 Speaker 4: and they also tell us that they love Spectrum as well. 148 00:07:21,960 --> 00:07:23,960 Speaker 4: The thing that they love is the way a Rolls 149 00:07:24,040 --> 00:07:27,480 Speaker 4: Royce drives. It's that waftability, that ease of driving and 150 00:07:27,560 --> 00:07:30,640 Speaker 4: absolute silence when they're driving, and both power trains that 151 00:07:30,680 --> 00:07:33,480 Speaker 4: we have deliver that. In space, driving a Rolls Rice 152 00:07:33,600 --> 00:07:36,240 Speaker 4: is always a special occasion or indeed being driven in 153 00:07:36,280 --> 00:07:38,360 Speaker 4: one and that will always be the case with every 154 00:07:38,440 --> 00:07:39,320 Speaker 4: Rolls Royce that we make. 155 00:07:40,000 --> 00:07:43,520 Speaker 3: In terms of what you're doing down there, do you 156 00:07:43,680 --> 00:07:47,239 Speaker 3: envision a time when Rolls Royce is putting out more 157 00:07:47,840 --> 00:07:51,560 Speaker 3: one off models? I mean, right now you've got you know, 158 00:07:52,080 --> 00:07:56,640 Speaker 3: Ghost and Culinen and Phantom Inspector. But are you going 159 00:07:56,720 --> 00:08:01,400 Speaker 3: to be doing really individual pieces high networth individuals. 160 00:08:02,560 --> 00:08:07,040 Speaker 4: Well, we already today produce in very small numbers coach 161 00:08:07,080 --> 00:08:10,480 Speaker 4: built motor cars for our most demanding clients, and these 162 00:08:11,000 --> 00:08:14,480 Speaker 4: real show pieces of the possibilities of our crafts people 163 00:08:14,800 --> 00:08:17,800 Speaker 4: and artists who work in Goodwood. But I'd argue today 164 00:08:18,000 --> 00:08:20,800 Speaker 4: every Rolls Rice is a bespoke work of art, and 165 00:08:20,880 --> 00:08:24,120 Speaker 4: that is our mission is to increase the specific content 166 00:08:24,200 --> 00:08:27,480 Speaker 4: for each specific client in every Rolls Rice because ultimately 167 00:08:27,520 --> 00:08:30,000 Speaker 4: they are a masterpiece for our clients. They really do 168 00:08:30,120 --> 00:08:35,720 Speaker 4: represent the best of craftsmanship and the most special specific 169 00:08:35,760 --> 00:08:37,760 Speaker 4: content for our clients. And that's what we're very, very 170 00:08:37,800 --> 00:08:38,880 Speaker 4: proud of at Rolls Rice. 171 00:08:39,440 --> 00:08:41,520 Speaker 3: All Right, when I listed the models, I left our Wraith, 172 00:08:41,800 --> 00:08:42,880 Speaker 3: which is one of my favorites. 173 00:08:42,920 --> 00:08:46,640 Speaker 2: I have to say as well, a power coupe. 174 00:08:46,760 --> 00:08:48,960 Speaker 3: Chris, thanks so much for joining us, Chris Brownridge, there 175 00:08:49,120 --> 00:08:51,959 Speaker 3: of Rolls Royce Motor Cars at his new private office 176 00:08:52,040 --> 00:08:54,040 Speaker 3: in downtown New York. Be sure to listen by the 177 00:08:54,040 --> 00:08:56,520 Speaker 3: way to my podcast Hot Pursuit. You can get it 178 00:08:56,559 --> 00:08:59,240 Speaker 3: on Apple or Spotify, wherever you get your podcasts. 179 00:08:59,320 --> 00:09:00,720 Speaker 2: Hannah Elliott and. 180 00:09:00,600 --> 00:09:03,720 Speaker 3: I she's the luxury reporters of Reporter for Pursuits. 181 00:09:03,840 --> 00:09:06,160 Speaker 2: We spent an hour with Chris yesterday and I think 182 00:09:06,200 --> 00:09:09,400 Speaker 2: you'll find it interesting. That episode comes out on Friday.