From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Financial analysis of chassis costs and pricing comparing the English and American markets for the Phantom model.
| Identifier | ExFiles\Box 19\4\ Scan249 | |
| Date | 9th September 1930 guessed | |
| -2- 1. Price £1330 at Derby. 2. List price in England of £1900. 3. Duty of 33 1/3% based on chassis list price less 15% discount to Dealers, such as Barkers, Park Ward, etc. resulting in a cash outlay of 9,321 dollars per chassis landed in New York. To this cost, charges for completion in Springfield, must be added, resulting in a total cost of Phantom II chassis complete ready for body of 10,110 dollars. This cost is 3650 dollars or £751 increase over the American Company's cost of Phantom I chassis complete. Adding to this the average cost of coachwork, the fixed cost of a complete Phantom II car delivered to Sales will be in excess of £2700. If it were possible to introduce and sell and deliver the entire 200 chassis contracted for during a the period of 12 months (one year) and as a result of all this expenditure of cash and effort reflect a "break even" covering the operations as reflected into the financial statement, the average net cash to be received per car from the customer must be approximately £4000. This price does not include any profit for contingencies or to pay 7% dividends on Preferred Stock, which accrues to the amount of 245,000 dollars per year. This average price to be received is a most substantial increase per car over the actual for 1929 and still greater increase above that received during the 10 months of 1930. Our conclusion is that the operations of the year 1931 will result in the knowledge that the American Company has assisted in perpetuating the name of "Rolls-Royce" in the United States, and has through a better understanding and working with the English Company laid the foundation on which there are possibilities through cooperation of "worth while" financial achievements in the future, beyond 1931. We ask ourselves the question :- "What is the logical solution?" | ||