Rolls-Royce Reports Sales Record
Luxury Car Maker Also Is Considering Move into Sport-Utility Vehicle Market
Jan. 8, 2014 7:59 p.m. ET
LONDON—Rolls-Royce Motor Cars reported its fourth consecutive annual sales record, boosted by a push into new markets where rising wealth is producing new customers for the premium auto maker.
The U.K. company, whose customized sedans are a byword for automotive luxury, sold 3,630 cars last year with notable gains in the Middle East and China, which recorded year-over-year growth of 17% and 11%, respectively.
Separately, Rolls-Royce's chief executive said the company is considering an entry into the fast-growing sport-utility vehicle market but isn't in a rush.
The company is early in designing a luxury SUV, which would pitch it against rival premium luxury manufacturers Bentley Motors and Jaguar Land Rover, but a production decision could be years off, Rolls-Royce Chief Executive Torsten Mueller-Oetvoes said.
"The luxury SUV sector is an interesting and stable segment, but we must consider whether it fits our brand," Mr. Mueller-Oetvoes said in an interview. "Rolls-Royce by tradition isn't sporty or utility; we must think what kind of character such a car would have and what it would look like."
Mr. Mueller-Oetvoes said a final decision will take time, possibly a couple of years.
The fabled British car maker also will need to convince German parent
BMW AG
BMW.XE +1.08% that the considerable investment in such a product would be worthwhile. It took rival luxury car maker Bentley several years, until last July, to get the green light from its parent,
Volkswagen AG
VOW3.XE +0.07% , to go ahead with an SUV. On Wednesday, Bentley said it was on track to have its luxury SUV on sale by 2016.
Bentley executives have hinted at a starting price for its SUV of between $140,000 and $180,000, with an annual sales target of between 3,000 and 4,000 vehicles. Jaguar Land Rover, owned by India's
Tata Motor Co.
500570.BY +0.07% , launched its luxury SUV model more than a year ago with a starting price of around $110,000.
As for Rolls-Royce's sales, the company said China and the U.S. remained its most significant markets.
"We have reported a strong year and have maintained our position at the pinnacle of the superluxury market," Mr. Mueller-Oetvoes said. Rolls-Royce defines the superluxury segment as comprising cars costing over 200,000 euros ($272,000). "We are pleased to be selling more cars, but we are not volume chasers and intend to stay highly exclusive."
Rolls-Royce sold cars in more than 40 countries world-wide last year including new markets such as Istanbul, Nigeria, Vietnam and the Philippines. To boost its geographic expansion the premium car maker said it had opened 15 new dealerships over the year taking the total number to 120 and with further dealership expansion planned for 2014.
Rolls-Royce is committed to keeping production of its three car families—Phantom, Ghost and the recently launched Wraith model—in the U.K. The auto maker said it would recruit 100 new permanent jobs at its base in Goodwood, the majority in manufacturing. This is in addition to 100 new jobs announced last July.
Continued investment by the foreign parents of luxury British car manufacturers reflects the continuing recovery of the U.K. car industry. Bentley is investing 800 million pounds ($1.2 billion) and creating 1,000 new jobs over the next three years as it expands its products and facility.
Meanwhile Jaguar Land Rover is getting between £2 billion and £3 billion a year to expand its two brands and their geographic reach. The company has created some 9,000 jobs in the U.K. in the past two years.
"Rolls-Royce's impressive sales record and the new jobs they have created shows the strength of this iconic brand and reflects the rising success of the British car industry. Last year, car exports generated over £30 billion for our economy—a rise of around 7%," U.K. Business Secretary Vince Cable said.