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Rolls-Royce is growing its factory so it can build its 'bespoke' cars more slowly

Rolls-Royce is growing its factory so it can build its 'bespoke' cars more slowly

CTV
Tuesday, April 30, 2024 03:50:07 PM UTC

Rolls-Royce is vastly expanding its factory in Chichester, England. The BMW subsidiary is adding five new buildings with construction planned to start next year.

Rolls-Royce is vastly expanding its factory in Chichester, England. The BMW subsidiary is adding five new buildings with construction planned to start next year.

Usually, when a carmaker expands a factory it’s for one simple reason: building more cars. But this is Rolls-Royce. Making and selling more Rolls-Royces would undermine the brand’s vaunted exclusivity.

So this factory expansion isn’t about making more cars, but making more expensive cars, which takes more time and requires more space for workshops and storage of exotic materials.

The expansion signals something about Rolls-Royce’s ultra-wealthy clientele. While they can only buy so many cars, they can certainly spend more on each one.

Since 2020, Rolls-Royce sales have increased 17 per cent, reaching a record of 6,032 cars and SUVs worldwide last year. Over that same time, though, the average amount of money customers paid for their cars increased 43 per cent, going from US$350,000 in 2020 to US$500,000 each, on average, last year.

That increased revenue per vehicle comes largely from more complex and time-consuming customization — “bespoke,” as Rolls-Royce terms it — requests. It even calls its luxury customization programs “Bespoke” and, for fully customized models, “Coachbuild.”

“We’re not necessarily growing that much in volume,” said Martin Fritsches, president of Rolls-Royce Motor Cars Americas. “That’s obviously not our focus point. But clearly, our bespoke area is gaining and relevant. And has been expanding dramatically, particularly in the last couple of years.”

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