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).
Cost analysis and competitive comparison for the B.50 chassis, detailing materials, pricing, and profitability.
| Identifier | ExFiles\Box 116\1\ scan0118 | |
| Date | 23th May 1938 | |
| -2- In order to build miles into their product they do a number of things which recently we have been taught to believe are very extravagant. They use - stellited inserted valve seats, hardened crankshafts, lead bronze bearings, fully-floating back axles, 3% nickel steel frames, and servo-operated brakes. To obtain lightness they are using aluminium crankcases, magnesium gearboxes, and magnesium axle centre housings. In addition to these extravagances, they are forced to use fuel pumps on their heavy oil engines, which are, of course, much more expensive than the equivalent distributor. In spite of this, the selling price of one of their chassis for a 10 ton bus is £1100. The chassis weighs 4 tons, i.e., it carries 120% of its own weight against a similar figure for one of our chassis of about 80%. Making a cost comparison between these commercial vehicles, and the price of £950 at which we are aiming for B.50, with body, we get the following results:- Allowed Factory Cost for B.50 chassis (Rm{William Robotham - Chief Engineer}3/R.19.3.38) ................... £450. Add 10% profit ................................ £ 45. Add Sales Expenses @ 25% Factory Cost (at present over 30%) £112.10. - Catalogue chassis price will be .............. £607.10. - The weight of B.50 chassis will be about 26 cwts. The list price of this chassis is, therefore, 4/2d per lb. The list price of the A.E.C. bus chassis is 2/5d per lb. Actually, after examining the pieces, we are of the opinion that the B.50 design is less complicated than that of the A.E.C. oil-engined bus chassis, and that the materials we are proposing to use on B.50 are less costly than those being used by A.E.C's. | ||