Rolls-Royce: No More New Combustion Engines in the Future

Rolls-Royce's press chief Richard Carter has already hinted that the all-electric drive is naturally quieter and more comfortable than the V12 – however, range and performance have "not yet matched up." His boss, Müller-Ötvös, told the magazine "Autocar" that Rolls-Royce would be following up the Spectre with all-electric successors to the SUV Cullinan, as well as the Ghost and Phantom sedans. This would allow BMW to end its complex V12 production.

Interestingly, the fact that the Spectre is being launched as a coupe in "Wraith" styling as a debut electric model is notable. According to Carter, this is also because this segment features the youngest and least traditional audience, which is additionally the most interested in fully electric models. And even though the Spectre, according to Carter, is positioned quite differently from the Wraith, it is likely to replace it in the long term as the proportions are similar. This aligns with Müller-Ötvös’s argument that it’s not just the British combustion ban from 2030 that is driving Rolls-Royce’s perspectives. He explained to "Autocar":

"We are driven not only by legal requirements but also by our relatively young customer base worldwide, and we see that more and more people are actively asking for an electrified Rolls-Royce."

Remarkably, under his leadership, the average age of Rolls-Royce customers has dropped to just 43 years, which is extremely young. And many already have an electric vehicle in the garage – because according to Carter, Rolls-Royce models are always part of a fleet that typically consists of at least three to four vehicles – often significantly more. Müller-Ötvös adds:

"Quite a few of our customers already own an electric car, be it a Tesla, a BMW, or another model."

Therefore, customers already have experience with charging and range management. He yet provided no specific details on the data and prices of the electric Rolls-Royce. It is clear that they will play the torque card, which is not a problem. However, it would be problematic to convert existing bodywork from production cars to electric models; synergies within the company will be utilized and parts and components will be adopted – as has been the case so far.

Interesting: Rolls-Royce will continue to set prices based on the "segment-driven" rather than "cost-driven" method, and according to the CEO, they will always make money, even with electric vehicles:

"One thing is clear: We will never bring a car to market that is not as profitable as cars with internal combustion engines."

Müller-Ötvös has a small advantage within the BMW Group, which he explained as follows:

"I want to drive the contribution margins per car because I'm in the business to make a profit: That's my job within the BMW Group, not to drive volume."

What does this mean?

Contribution margin instead of volume, individuality instead of mass production—Rolls-Royce can continue to focus on these core areas even with electric vehicles. And with their large models, they will have enough space and affluent customers to easily transition to range- and torque-strong e-mobility.