BMW is planning to build the first "baby" Rolls-Royce for half a century, reviving a 1930s strategy to boost sales and help struggling dealers.
Burkhard Goeschel, a BMW board member, said the firm was drawing up blueprints for a trimmed-down model costing a mere £160,000.
"We're thinking of a model that slots in below the Rolls-Royce Phantom," he told the German media.
The 6.7-litre Phantom starts at £256,000, rising steeply when fitted with special features and toys, putting it out of the reach of the moderately rich.
Rolls-Royce began selling "entry-levels" cars in 1929, launching the popular 20/25 model with roughly half the horsepower of the bigger Phantom II.
It was the top-selling Rolls-Royce between the wars. The "two-tier" model strategy was abandoned in the 1940s.
BMW bought Rolls-Royce in 1998, while Volkswagen purchased the Bentley division along with the main plant in Crewe.
Left with little but the brand name, BMW built a fresh plant at Goodwood, recruiting a new workforce. Most of the key engineering parts are built at BMW sites in Bavaria.
Michael Tyndall, an auto analyst at Nomura, said the plans for a junior Rolls-Royce were risky.
"They paid for a very strong brand when they bought Rolls, so they have to be careful not to dilute that brand," he said.
"Still, they are the best-run car company in Europe, with the highest margins. They've shown they are very good at protecting the cachet of their brands," he said.
BMW posted a 15pc fall in second-quarter profits this year, chiefly due to the rising cost of plastics and specialist steels.
But the family-owned firm has weathered the global downturn in the car industry better than its main German rivals, sticking to its niche market of quality cars.
By contrast, DaimlerChrysler has been haemorrhaging money on its Smart micro-car venture, while Volkswagen stumbled trying to branch out of if its mid-market tier with its costly Phaeton.
BMW aims to raise sales of Rolls-Royce cars to 1,000 this year, counting on a booming market in China and above all India - where Raj nostalgia has revived demand, despite a 100pc import tax.
Total sales last year of 800 cars was barely enough to support a worldwide network of 70 dealers.
Rolls-Royce was coy yesterday about the new plans.
"Nothing is official yet. All sorts of things are being considered, but talk of a baby Rolls-Royce is highly misleading. Nobody is talking about a small car," said a spokesman.
Industry analysts say the baby Rolls will fit in halfway between the Phantom and BMW's top 760Li model, which sells for around £80,000.
A Cabrio sports car based on the aluminium chassis of the Phantom is to be built in 2007, but it will not be cheap.
Finally they need something to boost the brand, saw a Phantom once in Paris- it is truly an amazing car - As JC says, for over 80 year Rolls Royce has said they make the best cars, for once it's true.
Burkhard Goeschel, a BMW board member, said the firm was drawing up blueprints for a trimmed-down model costing a mere £160,000.
"We're thinking of a model that slots in below the Rolls-Royce Phantom," he told the German media.
The 6.7-litre Phantom starts at £256,000, rising steeply when fitted with special features and toys, putting it out of the reach of the moderately rich.
Rolls-Royce began selling "entry-levels" cars in 1929, launching the popular 20/25 model with roughly half the horsepower of the bigger Phantom II.
It was the top-selling Rolls-Royce between the wars. The "two-tier" model strategy was abandoned in the 1940s.
BMW bought Rolls-Royce in 1998, while Volkswagen purchased the Bentley division along with the main plant in Crewe.
Left with little but the brand name, BMW built a fresh plant at Goodwood, recruiting a new workforce. Most of the key engineering parts are built at BMW sites in Bavaria.
Michael Tyndall, an auto analyst at Nomura, said the plans for a junior Rolls-Royce were risky.
"They paid for a very strong brand when they bought Rolls, so they have to be careful not to dilute that brand," he said.
"Still, they are the best-run car company in Europe, with the highest margins. They've shown they are very good at protecting the cachet of their brands," he said.
BMW posted a 15pc fall in second-quarter profits this year, chiefly due to the rising cost of plastics and specialist steels.
But the family-owned firm has weathered the global downturn in the car industry better than its main German rivals, sticking to its niche market of quality cars.
By contrast, DaimlerChrysler has been haemorrhaging money on its Smart micro-car venture, while Volkswagen stumbled trying to branch out of if its mid-market tier with its costly Phaeton.
BMW aims to raise sales of Rolls-Royce cars to 1,000 this year, counting on a booming market in China and above all India - where Raj nostalgia has revived demand, despite a 100pc import tax.
Total sales last year of 800 cars was barely enough to support a worldwide network of 70 dealers.
Rolls-Royce was coy yesterday about the new plans.
"Nothing is official yet. All sorts of things are being considered, but talk of a baby Rolls-Royce is highly misleading. Nobody is talking about a small car," said a spokesman.
Industry analysts say the baby Rolls will fit in halfway between the Phantom and BMW's top 760Li model, which sells for around £80,000.
A Cabrio sports car based on the aluminium chassis of the Phantom is to be built in 2007, but it will not be cheap.
Finally they need something to boost the brand, saw a Phantom once in Paris- it is truly an amazing car - As JC says, for over 80 year Rolls Royce has said they make the best cars, for once it's true.
![[xx(]](/images/smilies/icon_smile_dead.gif "Dead [xx(]"){kind=icon}
. BTW how could you buy an ML 55 I never liked thouse