Monday, 2 March 2015

When is a Rolls-Royce not a Rolls-Royce?

A little frustrating to see my information sources making the same basic error year on year.
In this case Digital Look, and its inability to filter out news stories and reporting between Rolls-Royce Holdings, the Aerospace, Defence and Energy company, and Rolls-Royce Motor Cars Ltd, a subsidiary owned of BMW.

The offending news story this time being a possible future Rolls-Royce SUV model but it appears under the Rolls-Royce Holdings section, the Aerospace, Defence and Energy company.




At a guess, as its an ongoing thing, and as with most things these days, I would assume it to be an error by computer given a restriction in its word search for news stories.

Its not a recent thing either, stretching back to the original sale of Rolls-Royce Motor Cars to Volkswagen in 1998, by its then owner Vickers.

Unfortunately for VW, this change of ownership triggered a reversion of the recognisable elements of Rolls-Royce cars to Rolls-Royce PLC, namely the Spirit of Ecstacy, the Radiator Grill, and the usage rights to the R-R brand logo.
Rolls-Royce PLC, already in a joint venture with BMW to produce small aero-engines proceeded to sell the rights to usage to its then partner, BMW.
Not necessarily part of the deal but the RR-BMW joint venture subsequently became a wholly owned subsidiary of R-R PLC.

The following year, 1999, actually saw the remaining elements of Vickers being bought by R-R PLC, so there was almost a return of the Motor Company to the Aerospace Company.

Anyway, 2003 saw the first Rolls-Royce cars, as we recognise them today, rolling off the purpose built BMW facility in Goodwood.
The original factory and workforce in Crewe (and to my mind the spiritual home), is still owned by VW, and producing cars under the other luxury and heritage brand, Bentley

Digital Look aren't on the their own though, and I have in the past written to such as Shares magazine highlighting the same confusing references in their reviews and recommendations.

So if you are interested in investing into the growing luxury car brand market and specifically Rolls-Royce Motors, its BMW AG you need to be looking at, not Rolls-Royce Holdings.

BMW AG is quoted in Euros on the DAX Index of the Frankfurt Stock Exchange.

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