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).
Strategy for producing and selling cars, including the Phantom II and a 25HP model, in the American market.
| Identifier | ExFiles\Box 19\4\ Scan243 | |
| Date | 1st January 1931 | |
| -4- Hs.{Lord Ernest Hives - Chair}1/M.J.1.1.31.Contd. (and the results have proved this) that they are equally as good as the Dunlop. Other parts such as road springs, petrol tank, undershields, bonnet, silencer, battery box, etc., etc., could be produced in U.S.A. without difficulty. The present order for 200 Phantom II cars gives us time to go carefully over the question of the cheapest and most satisfactory way of getting the imported Phantom II into U.S.A. There is room for some cool, truthful investigation into the question of costs. One outstanding point to be considered is that wages in America are approximately two and a half times higher than wages in England, therefore if we were simply exporting labour we ought to be able to do it against a 33% duty. Materials I believe are cheaper in U.S.A. The solution of the cheapest way of getting cars into U.S.A. must be simple if a truthful investigation is made. The biggest job of work we have to do for the American market is undoubtedly the left-hand 25 HP. car. In my view this is very urgent because when they come to have to sell the Phantom II imported car at a higher price than their present Phantom I it is possible that the buying public may revolt and simply refuse to buy. It is no use attempting to sell right-hand cars in U.S.A. It has been suggested that left-handing the 25 HP. car could be carried out in a more economical way than it was done on Phantom II. E.{Mr Elliott - Chief Engineer} considers that there is a great possibility of making it left-hand without altering the engine. If this could be done it would leave us with only the steering and gearbox. The question of who should bear the cost of left-handing the car was discussed at one of the meetings with Mr. Fuller present. He was very emphatic that we, as manufacturers, must take the risk and bear the costs of developing the left-hand car. He considered that they were taking their share in keeping up all their expensive sales establishments and staff. In spite of his emphatic remarks I still think that it is possible we might get a firm contract for some limited number such as 50. The number would obviously depend on the price. In all the discussions on the 25 HP. car it was agreed that we should have to produce at Derby a certain number, at least fifty, complete left-hand 25 HP. cars before any scheme of importing parts only could be put into operation. As a result of my visit I was impressed by the | ||