MT Interview: James Crichton, Rolls-Royce regional director Europe

Rolls-Royce does not do things in a hurry. As befitting one of the world’s most iconic brand names it takes a measured approach to everything it does and tends not to make a fuss. However, judging by the flurry of activity at this year’s Geneva Motor Show that is all about to change.

Launched in 1906 the marque became a byword for the very best in British automotive engineering. Nationalised in the 1970s and sold first to Volkswagen Group in 1998 and then to current owners BMW Group in 2003, the company now trades as Rolls Royce Motor Cars from its ultra-modern headquarters deep in the West Sussex countryside next to the famed Goodwood Motor Circuit.

The company chooses not to reveal its UK sales figures, so does not feature in the SMMT’s monthly registration tables, but it admitted to having a rather good year in 2015. Internationally sales were down -8% to 3,785 units, from a 112 year record high of 4,063 in 2014, as a result of China’s faltering economy. Last year the brand’s biggest international market was the US, followed by the United Arab Emirates and China.  The UK was rated fourth followed by Saudi Arabia. It has a grand total of 130 dealers worldwide.

The UK, of course, remains a major focus for the brand for both historical and commercial reasons. Year-on-year sales last year were up 2%, resulting in record volumes, a result James Crichton, regional director for Europe, was particularly pleased with as the flagship Phantom model, priced from £259,655 to £304,295 was on rollout. “It was a positive result. Success for Rolls-Royce is selling one more car, we do not chase volume,” he said.

There’s every reason to expect volumes this year to be even higher once the brand opens its seventh UK dealership in June located in a multi-million pound development in Bristol. The new site, operated by Rybrook, is due to open this summer and is located in Cribbs Causeway just north of the city centre. Roll-Royce will be sold alongside Bentley, Lamborghini and McLaren. The opening sees Rybrook extending its relationship with Rolls-Royce, having successfully represented it in Birmingham for several years.

“Rolls-Royce takes great care in selecting its dealer partners, and we’re delighted to be working alongside Rybrook as we open our seventh showroom in the UK,” he said.

“Rolls-Royce Motor Cars Bristol will help us deliver further sustainable growth in the UK and we are confident that our strengthened partnership with Rybrook will help us meet a clear demand in this part of the country for our super-luxury motor vehicles.”

This is a big year for the brand’s UK dealers who have just started selling the striking looking Dawn, an all new model that promises to take the luxury drophead market to a new level. The car is the latest step in the brand’s BMW-led renaissance, which started in 2003 with the launch of Phantom followed by the Ghost in 2009 and Wraith in 2014. Meanwhile the next generation Phantom is due in 2018 and Rolls-Royce is also set to bring a Phantom-based SUV, codenamed Project Cullinan, to the market in 2018.

These launches collectively represent the biggest ever expansion of the marque’s line-up which will require Rolls-Royce to recruit an eighth dealer in the UK.

“Our volumes and line-up are growing, which is why we need to expand the Rolls-Royce dealer network in the UK and across Europe.

“There are a lot of reasons for us to be positive about the UK and Europe this year. It’s an exciting time for us with dealers just taking delivery of their Dawn demonstrators. It’s a positive time for dealers with this new car coming into the market.

“We’ve also just announced the launch of the Phantom Zenith, which is a run-out limited collection of 50 cars based on the Phantom drophead and coupe.”

This year also sees the introduction of the Rolls-Royce Black Badge, an unexpected brand extension for its Ghost and Wraith ranges, featuring distinctive new exterior and interior themes aimed at capturing younger customers in their mid-40s. The attention to detail is impressive with new composite carbon fibre alloy wheels, featuring 22 layers, which took four years to develop. HR Owen has already capitalised on the new product, publicising the fact that the new car will be on sale at the group’s Berkeley Square dealership in Mayfair from July.

“The Black Badge Ghost and Wraith are permanent additions to the Rolls-Royce family, they’re not just available as collection cars, they will continue into
the future.”

The search for the eighth dealer is under way as the brand is keen to have the network in place to accommodate the expanded line-up.

“We look to the long term when we select our dealer partners. One of the most important things I’m doing in my job is finding the right partners. We are not a mainstream brand so what makes for a success with our brand has a lot to do with who the owners of the business are. A lot of our customers want to deal with the owner of the business or the general manager; they want to have that relationship.”

Indeed a lot of customers want to talk to Crichton himself and immediately before our conversation he was on his mobile answering questions from a customer.

“I’m talking to end customers on a daily basis. They like to be talk to people at the head of the business.”

It seems vulgar to be talking about profitability but Rolls-Royce dealers will be just as focused on their return on sales as any other dealer. Unsurprisingly Rolls-Royce is terribly discreet about the returns its dealers see.

“The profit figures for our dealers is not something we would share but it is something for me, as director of the European region, that is a high priority. I need my partners to be earning money in order to be investing in our brand.”

So do profits come from new unit sales or aftersales? “We’re a fairly young brand. If you go back to 2009 we were only selling around 1,000 cars worldwide. Since then our volumes have grown to 3,500-4,000 units so the car parc has been developing at a fast rate. The growth I’m seeing in the aftersales business in the European region is quite rapid at around 20-30% a year. Three or four years ago our aftersales business was not a top priority for the owners of our businesses but now they see the opportunity and it’s
a strong contributor to the overheads of the business.”

Like other brands Rolls-Royce is working with its dealers to capture more out of warranty work and promoting aftersales products from tyres to champagne picnic hampers.

“We’re working with our dealers to make sure any lapsed customers are followed up to make sure we keep them in the Rolls-Royce family.”

Finally, with its expanded car parc Rolls-Royce is now in a better position to develop its Provenance Pre-Owned used car scheme.

“Our approved used car business has grown over the last two years to a point across Europe where  used volumes are around 50% of our new volumes so that is also becoming a strong contributor towards their businesses.”

Curtis Hutchinson

 

 

 

 

 

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