Automotive News Europe - May 2019 - 14

AUTOMOTIVE NEWS EUROPE

Q&A

QA Good times

Rolls-Royce CEO breaks sales records while spearheading electrification shift

olls-Royce posted its best global sales
to date in 2018 with a volume of 4,017
units, and the BMW Group subsidiary is
likely to set a new all-time high this year.
The Cullinan, the brand's first SUV, gave
Rolls-Royce a big boost. CEO Torsten
Müller-Ötvös also says the company has
achieved record levels of profits, without
going into detail. Müller-Ötvös, who has
led Rolls-Royce since 2010, spoke with
Automotive News Europe Correspondent
Nick Gibbs about the brand's sales surge
as well as its shift to electric powertrains.

Meet the boss
❚ NAME: Torsten

Müller-Ötvös

❚ TITLE:

Rolls-Royce CEO

Do you think that Rolls-Royce will
have another record year?
If no major disruptions happen worldwide, we are well positioned to set a new
record in 2019. We have a strong order
bank into the fourth quarter. The Cullinan
has proved to be a stunning success. It is
sold out into the fourth quarter.
Bentley's SUV, the Bentayga, started
with high sales but they have fallen
recently. How will you maintain Cullinan sales?
Our strategy is clear. We are not in any
way camouflaging a [BMW] X7 and presenting it as a Rolls-Royce. Our clients
are very astute and understand what
they get for their money. You can't just
offer bling any more, you need to offer
very convincing substance. That is what
we have delivered.
What are your electrification plans?
We will go electric in the next decade.
We won't tell you exactly when but rest
assured it will happen, step by step. Not
hybrid but full electric. We won't phase
out combustion engines overnight, there
will be overlap for quite a while. We will
sell cars with 12-cylinder engines as
long as we are legally allowed to do so.
Are your customers ready to switch?
We determined four to five years ago
when we built a mockup of an electric
Phantom and put quite a lot of customers behind the wheel that electric is quite
fitting to the brand. It's powerful, torquey
and silent. The main issue was range,

www.autonewseurope.com

❚ AGE: 58
❚ MAIN CHALLENGE:

Steering Rolls-Royce
through headwinds
such as Brexit
and global economic uncertainty.

and we can crack that in the next decade
with new battery technology. Recharging
by cable was also not seen as very RollsRoyce, therefore, we are investigating different options for charging.
Bentley and Aston Martin say EVs will
lure new customers. Do you agree?
Will they unlock additional potential?
Yes. How big is that potential? Let's wait
and see. Our customers will embrace
electric if it fits. Brands such as Ferrari
or McLaren are all about exhaust noise.
That's not us. For that reason electric is
a natural fit, as long as we can fix the
range and charging technology issues.
Does an electric Rolls-Royce look like
an electric car? Does it need to project modernity?
All our cars project what Rolls-Royce
promises and that is presence. It will be
unmistakably a Rolls-Royce while also expressing that it's an electric-powered car.
Whatever happens to the UK's future
relationship with the EU, life would
be easier for you if you could source
more parts in the UK. Is that possible?
I would love to but I would need a sup-

plier structure in the UK and that's not in
existence. Only 10 percent of our parts
are coming from the UK. I need 38,000
parts to build a car and 90 percent are
coming from all over the world. Every
day 12 trucks deliver parts.
Automakers are facing varied economic headwinds globally. What do
you fear most?
In general, economic uncertainly is not
good for our business because it leads
our potential customers to feel uncertain.
Today, 80 percent of our customers are
running businesses. If there is an economic downturn and your own company
is suffering then you are less likely to buy
a new Rolls-Royce.
Did the change to U.S. corporate tax
laws help?
Very much. It was an interesting case
because a lot of people were holding
back on purchases until the tax reform
was completed. Once this was done our
business kicked off nicely. It gave confidence in the U.S. economy and that
fueled hunger for luxury. The U.S. is our
ANE
biggest market.

MAY 2019

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Automotive News Europe - May 2019

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