WEBVTT - Rolls-Royce Motor Cars CEO Chris Brownridge Talks New NYC Private Office 0:00:02.600 --> 0:00:07.000 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.080 --> 0:00:10.160 Let's talk about cars right now. 0:00:10.240 --> 0:00:14.760 Rolls Royce sells arguably the world's most luxurious motor cars, 0:00:14.920 --> 0:00:18.000 but they don't want to sell more of them, just 0:00:18.360 --> 0:00:21.040 higher priced versions of each one. In order to do that, 0:00:21.360 --> 0:00:24.799 the Goodwood based manufacturer has opened up a private office 0:00:24.920 --> 0:00:28.000 right here in New York City for its highest network 0:00:28.080 --> 0:00:33.120 clients in America to help design increasingly individual masterpieces. 0:00:33.200 --> 0:00:35.279 As the CEO refers. 0:00:34.880 --> 0:00:37.839 To them, let's bring him in to talk about lifting 0:00:38.000 --> 0:00:42.080 luxury margins and contributing those to parent company BMW. Chris 0:00:42.080 --> 0:00:45.319 Brownridge runs the company now, and he joins us from 0:00:45.360 --> 0:00:48.160 the private office down in the meatpacking district. Chris, great 0:00:48.159 --> 0:00:50.080 to have you on the program. Thanks so much for 0:00:50.200 --> 0:00:53.479 joining us. I wonder if you could start by telling 0:00:53.560 --> 0:00:57.520 us what your goals are in terms of your contributions 0:00:57.520 --> 0:01:01.360 to BMW, in terms of growing margins. What do you 0:01:01.480 --> 0:01:04.720 want to achieve in your say, first couple of years 0:01:04.760 --> 0:01:05.240 as CEO. 0:01:06.480 --> 0:01:09.319 Oh, good morning, Matt, and it's great to be here 0:01:09.360 --> 0:01:11.520 in New York. I'm sitting in our private office and 0:01:11.520 --> 0:01:14.959 that's a great place to start. The whole business at 0:01:15.040 --> 0:01:18.280 Rolls Royce is about creating value for our clients. And 0:01:18.480 --> 0:01:21.200 what we're seeing is increasing demand from our clients for 0:01:21.240 --> 0:01:24.920 more and more bespoke and personal motor cars. And the 0:01:24.920 --> 0:01:28.480 whole private office network that we're setting up is designed 0:01:28.480 --> 0:01:31.120 to really create environment where we can engage them directly 0:01:31.560 --> 0:01:35.000 with our design team and so we see a great 0:01:35.040 --> 0:01:38.959 opportunity and our client feedback about the private office is 0:01:39.000 --> 0:01:40.080 extremely encouraging. 0:01:40.360 --> 0:01:43.560 So you have I believe you have setups like this 0:01:43.800 --> 0:01:50.560 in other hubs in Dubai for example, in Shanghai for example, 0:01:51.080 --> 0:01:56.160 how strong are they in terms of contributing to margin growth? 0:01:57.760 --> 0:02:00.840 Well, the New York Private Office is of a network, 0:02:00.880 --> 0:02:03.279 and as you say, we have a number around the world. 0:02:03.560 --> 0:02:06.360 We started with the home of Ross Rice in Goodwood, 0:02:06.480 --> 0:02:08.280 where our clients would come to us and so they 0:02:08.280 --> 0:02:10.360 could meet the team and we could work with them 0:02:10.440 --> 0:02:13.440 to create their own bespoke rolls RoCE and this is 0:02:13.440 --> 0:02:16.360 a growing aspect of our business. For example, in Shanghai, 0:02:16.440 --> 0:02:18.760 in the first six months of the private office being open, 0:02:18.919 --> 0:02:20.880 we had engagements with more than two hundred clients. So 0:02:20.919 --> 0:02:23.840 it's clearly something that resonates with our target audience. It 0:02:23.880 --> 0:02:26.400 creates a unique experience for them and Chris, I. 0:02:26.400 --> 0:02:28.440 Want to talk about global demand, and but I particularly 0:02:28.520 --> 0:02:31.280 want to talk about Chinese demand because, of course, you 0:02:31.320 --> 0:02:33.960 think about what we've seen out of China this week, 0:02:34.000 --> 0:02:38.079 a big bang of stimulus measures and wildly different industries here. 0:02:38.080 --> 0:02:40.800 But we were talking to the CEO of Pandora, for example, 0:02:40.840 --> 0:02:44.720 who said that they're strong everywhere except in China. 0:02:44.840 --> 0:02:45.320 What are you. 0:02:45.360 --> 0:02:47.320 Seeing when it comes to China when it comes to 0:02:47.639 --> 0:02:50.880 Rolls Royce specifically, well. 0:02:50.840 --> 0:02:53.320 It's clear at the moment in China the luxury industry 0:02:53.639 --> 0:02:57.440 is on some experiencing some more challenging times. But the 0:02:57.520 --> 0:02:59.840 Chinese market is very important to Rolls Royce and that's 0:03:00.120 --> 0:03:02.360 we've invested in it. In fact, we've opened a private 0:03:02.400 --> 0:03:04.920 office in Shanghai because we see a growing number of 0:03:05.040 --> 0:03:08.120 ultra high networth individuals and certainly what we've seen since 0:03:08.160 --> 0:03:11.160 that private office has been open is more profound engagements 0:03:11.160 --> 0:03:13.480 for our clients. You know, It's always been an important 0:03:13.480 --> 0:03:15.400 reason for us, and it will continue to be for 0:03:15.480 --> 0:03:17.560 the future, even. 0:03:17.360 --> 0:03:19.440 If you're looking at the long term in China, Chris, 0:03:19.440 --> 0:03:21.560 what does that mean for a more immediate demand? And 0:03:21.639 --> 0:03:24.320 wondering if this bigger push into the US with this 0:03:24.440 --> 0:03:28.160 New New York office starts to offset any weaknesses you 0:03:28.240 --> 0:03:30.200 might be seeing across the globe. 0:03:31.000 --> 0:03:34.000 Well, Ros Rice is a brand which with a great 0:03:34.040 --> 0:03:36.440 heritage and history, and of course we have clients all 0:03:36.480 --> 0:03:40.280 around the world, and we've seen over many years fluctuations 0:03:40.280 --> 0:03:42.320 in demand in every region of the world. And that's 0:03:42.360 --> 0:03:45.680 the great thing about our business. We're super flexible, super agile, 0:03:45.720 --> 0:03:47.560 and of course we've got clients all over the world, 0:03:47.600 --> 0:03:49.720 so if one region is up, there's always another one 0:03:49.720 --> 0:03:51.960 that may be down. But overall we can balance our 0:03:52.000 --> 0:03:54.800 business really effectively because we're so very agile. 0:03:55.160 --> 0:03:58.600 It does seem like, you know, within luxury, we see 0:03:58.800 --> 0:04:02.800 the lower end kind of struggling the higher end. We 0:04:02.840 --> 0:04:06.720 talk to, for example, executives at Lamborghini and Ferrari and 0:04:06.760 --> 0:04:09.080 they continue to do Gangbuster's business. 0:04:09.440 --> 0:04:10.440 Do you notice a. 0:04:10.520 --> 0:04:15.000 Growth in high net worth individuals? Is that what's powering 0:04:15.680 --> 0:04:19.080 this drive at the top end of luxury, Yeah, very 0:04:19.160 --> 0:04:19.520 much so. 0:04:19.800 --> 0:04:22.520 And in response to the growing demand for our clients, 0:04:22.560 --> 0:04:25.520 we're opening these private offices, but we're also investing in 0:04:25.560 --> 0:04:28.919 the home of Ross Royce. We're expanding our facility there, 0:04:29.080 --> 0:04:31.040 not so we can build more motor cars, but so 0:04:31.040 --> 0:04:33.400 we can build more precious and special motor cars for 0:04:33.440 --> 0:04:36.400 our clients. We need more space for these bespoke commissions, 0:04:36.560 --> 0:04:39.040 and we're certainly seeing over the last years a real 0:04:39.120 --> 0:04:44.839 growth in demand for more personalized and more specific requests 0:04:44.880 --> 0:04:47.839 from our clients. But also what they particularly value is 0:04:47.839 --> 0:04:50.200 the experience that we deliver them, and that's why when 0:04:50.320 --> 0:04:53.359 our clients can't come to Goodwood, Goodwood comes to the clients, 0:04:53.360 --> 0:04:55.240 and that's why we have our private offices. So where 0:04:55.279 --> 0:04:57.400 I'm sitting here in New York, this is a little 0:04:57.400 --> 0:04:59.720 bit of Goodwood. It's like an outpost to where our 0:04:59.760 --> 0:05:01.320 client we'll. 0:05:01.200 --> 0:05:03.040 Talk about some of your new models. Of course, I'm 0:05:03.040 --> 0:05:06.000 thinking about Stepter. It's your new all electric model in 0:05:06.040 --> 0:05:08.680 its first year of deliveries. A little bit of a 0:05:08.680 --> 0:05:12.520 setback here, of course, some recalls in place. What measures 0:05:12.560 --> 0:05:15.080 are you putting in place to deal with that recall? 0:05:16.680 --> 0:05:19.360 So Specter we launched this year and it's been a 0:05:19.360 --> 0:05:23.320 great success for us. Our clients feedback about Specters. They 0:05:23.360 --> 0:05:27.080 absolutely love the way the motorcar drives. It's a super coupe. 0:05:27.120 --> 0:05:29.720 It's absolutely stunning to look at, and it's a great 0:05:29.800 --> 0:05:35.080 palette our canvas for personalization we had this topic in 0:05:35.160 --> 0:05:37.040 terms of the recall. But what we're doing is we're 0:05:37.080 --> 0:05:39.280 handling that as efficiently as possible to make sure that 0:05:39.320 --> 0:05:41.800 our clients are not inconvenience. And our team have done 0:05:41.800 --> 0:05:43.560 a really good job of that, and we're making sure 0:05:43.600 --> 0:05:45.720 that we're quick to respond and we give all our 0:05:45.720 --> 0:05:47.360 clients the reassurance that they deserve. 0:05:48.160 --> 0:05:52.680 Which BMW, Which Rolls Royce vehicles are affected by this recall? 0:05:52.720 --> 0:05:54.520 Of course, we saw their profit warning out by your 0:05:54.560 --> 0:05:57.640 parent company, BMW. Can you give a sense of kind 0:05:57.640 --> 0:05:59.040 of where else the issue lies. 0:06:01.080 --> 0:06:05.920 The topic that we're discussing right now specifically affects Specter 0:06:06.080 --> 0:06:08.800 and only Specter, and in the North America area there 0:06:08.800 --> 0:06:11.000 are six hundred vehicles affected, and we have a pan 0:06:11.120 --> 0:06:12.800 of action for each and every one of them. 0:06:13.680 --> 0:06:16.840 I wonder what new models we can expect in the future, Chris, 0:06:16.880 --> 0:06:22.240 you have, you know on your ice cars twin turbocharged 0:06:22.400 --> 0:06:25.400 V twelve, you know, six point seven liter engine that 0:06:25.520 --> 0:06:29.160 just makes me salivate. Is it possible that that is 0:06:29.320 --> 0:06:31.120 married with electric power? 0:06:31.120 --> 0:06:33.520 Could we see a hybrid in the future for Rolls Royce. 0:06:34.520 --> 0:06:36.960 Well, one of the things that's always true about Rolls 0:06:37.000 --> 0:06:39.560 Rice is that we don't compromise, and with our V 0:06:39.640 --> 0:06:42.359 twelve power plant today in our model range, it's a 0:06:42.400 --> 0:06:46.320 fabulous piece of engineering. And also with spect we've delivered 0:06:46.440 --> 0:06:50.000 a motor car using electrification and again our pliant feedback 0:06:50.080 --> 0:06:52.839 is it's a perfect Rolls Rice. We'll never compromise. We 0:06:52.839 --> 0:06:55.520 always deliver the best possible power train for our clients. 0:06:55.800 --> 0:06:57.840 As for future motor car as well, I wouldn't want 0:06:57.880 --> 0:07:00.039 to give any secrets away right now, but what I 0:06:59.920 --> 0:07:02.240 can tell you is as a very exciting future for 0:07:02.360 --> 0:07:03.480 Rolls Rice, a. 0:07:03.560 --> 0:07:05.960 Very exciting future. You're not going to give away secrets 0:07:06.040 --> 0:07:08.919 right now, but I'm still going to try our clients 0:07:09.000 --> 0:07:11.240 asking for a hybrid. When you think about the Rules 0:07:11.360 --> 0:07:14.240 Royce customer base, are they asking for hybrids? 0:07:15.920 --> 0:07:19.160 Our clients, they tell us they love the V twelve 0:07:19.200 --> 0:07:21.400 and they also tell us that they love Spectrum as well. 0:07:21.960 --> 0:07:23.960 The thing that they love is the way a Rolls 0:07:24.040 --> 0:07:27.480 Royce drives. It's that waftability, that ease of driving and 0:07:27.560 --> 0:07:30.640 absolute silence when they're driving, and both power trains that 0:07:30.680 --> 0:07:33.480 we have deliver that. In space, driving a Rolls Rice 0:07:33.600 --> 0:07:36.240 is always a special occasion or indeed being driven in 0:07:36.280 --> 0:07:38.360 one and that will always be the case with every 0:07:38.440 --> 0:07:39.320 Rolls Royce that we make. 0:07:40.000 --> 0:07:43.520 In terms of what you're doing down there, do you 0:07:43.680 --> 0:07:47.239 envision a time when Rolls Royce is putting out more 0:07:47.840 --> 0:07:51.560 one off models? I mean, right now you've got you know, 0:07:52.080 --> 0:07:56.640 Ghost and Culinen and Phantom Inspector. But are you going 0:07:56.720 --> 0:08:01.400 to be doing really individual pieces high networth individuals. 0:08:02.560 --> 0:08:07.040 Well, we already today produce in very small numbers coach 0:08:07.080 --> 0:08:10.480 built motor cars for our most demanding clients, and these 0:08:11.000 --> 0:08:14.480 real show pieces of the possibilities of our crafts people 0:08:14.800 --> 0:08:17.800 and artists who work in Goodwood. But I'd argue today 0:08:18.000 --> 0:08:20.800 every Rolls Rice is a bespoke work of art, and 0:08:20.880 --> 0:08:24.120 that is our mission is to increase the specific content 0:08:24.200 --> 0:08:27.480 for each specific client in every Rolls Rice because ultimately 0:08:27.520 --> 0:08:30.000 they are a masterpiece for our clients. They really do 0:08:30.120 --> 0:08:35.720 represent the best of craftsmanship and the most special specific 0:08:35.760 --> 0:08:37.760 content for our clients. And that's what we're very, very 0:08:37.800 --> 0:08:38.880 proud of at Rolls Rice. 0:08:39.440 --> 0:08:41.520 All Right, when I listed the models, I left our Wraith, 0:08:41.800 --> 0:08:42.880 which is one of my favorites. 0:08:42.920 --> 0:08:46.640 I have to say as well, a power coupe. 0:08:46.760 --> 0:08:48.960 Chris, thanks so much for joining us, Chris Brownridge, there 0:08:49.120 --> 0:08:51.959 of Rolls Royce Motor Cars at his new private office 0:08:52.040 --> 0:08:54.040 in downtown New York. Be sure to listen by the 0:08:54.040 --> 0:08:56.520 way to my podcast Hot Pursuit. You can get it 0:08:56.559 --> 0:08:59.240 on Apple or Spotify, wherever you get your podcasts. 0:08:59.320 --> 0:09:00.720 Hannah Elliott and. 0:09:00.600 --> 0:09:03.720 I she's the luxury reporters of Reporter for Pursuits. 0:09:03.840 --> 0:09:06.160 We spent an hour with Chris yesterday and I think 0:09:06.200 --> 0:09:09.400 you'll find it interesting. That episode comes out on Friday.