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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).
Probable cost of the B.V. chassis and questioning the high factory overheads.

Identifier  ExFiles\Box 148\2\  scan0106
Date  10th January 1939
  
1260
COST

Hs{Lord Ernest Hives - Chair}/LS. from Rm.{William Robotham - Chief Engineer}

Rm{William Robotham - Chief Engineer}6/R.10.1.39.

We shall be very interested to see your analysis of the probable cost of B.V. chassis.

One point which is concerning us is the fact that on one of the charts, which is contained in the summary of your American visit, you give an analysis of the cost of making motor-cars in various quantities. The overheads have been assumed @ 150% on production of somewhere about 1,000 motor-cars a year. In spite of the fact that our labour costs are relatively still high, from the remarks you made yesterday our Factory overheads are 240%, and this does not include development expenditure, pension scheme, etc. Is there any reason why our overhead should come down to a reasonable figure when we try to make motor-cars seriously, or, alternatively, is there any reason why they should be particularly high at the present moment?

[Signature: Rm{William Robotham - Chief Engineer}]
  
  


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