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).
Letter discussing a scheme to reduce costs by increasing chassis production for the American market.
| Identifier | ExFiles\Box 72\2\ scan0283 | |
| Date | 17th January 1928 | |
| VERY SECRET. BJS/M17.1.28 - S - I realise that this would make the American Company into a manufacturing concern and that manufacture of chassis there would stop. would One of the advantages of this scheme would be that Derby would then be able to reckon on producing 200 or 500 extra chassis per annum, and thus reduce the cost of the chassis for America by quite an appreciable amount as compared with only making an unknown quantity of parts for America. Thereby the American Company would obtain the benefit of the reduced prices, whereas, if we continue only to make an indefinite number of parts or units for America, this does not give us a sufficiently definite basis on which to reduce our costs and establishment charges at Derby. In arriving at our costs and charges for parts and units to America at the present time, we can only do so by adhering to our present rates of overheads and costs. We are going closely into the comparative Derby and Springfield costs with Mr.Nadin. So far in actual practice this has proved rather difficult for us to make accurate comparisons, but we hope shortly to have arrived at some useful conclusions to enable us to send you further recommendations as far as purchasing parts and units is concerned, but in the meantime we thought it desirable to tell you our views of the future to enable you to consider the matter. Yours very sincerely, (Sgd) B.Johnson Mr.H.J.Fuller, Of Messrs. Aldred & Co., 40, Wall Street, New York. | ||