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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).
Letter to Overdrive Gears Ltd. discussing royalty figures and competitive strategy for various engine sizes.

Identifier  ExFiles\Box 136\2\  scan0080
Date  20th April 1939
  
1153.

Rm{William Robotham - Chief Engineer}6/R.{Sir Henry Royce}

20th April, 1939.

E.J. de Normanville, Esq.,
Overdrive Gears Ltd.,
76, Victoria Street,
LONDON. S.W.1.

Dear Mr. de Normanville,

Thank you for your letter of the 19th April. I am glad that we are going to be able to work together.

I would like to confirm that the figure of 15/-, which you mentioned for the smallest of our models likely to be inproduction when the gear is introduced, is satisfactory.

I should be glad, however, if you could give me a figure for a royalty to which you would agree on engine sizes up to 4½-litres.

As I pointed out to you, we are willing to regard the very large motor-car of over 6-litres, such as the Phantom III, as in a price class by itself, but on all the smaller jobs there seems to be a possibility of offering alternative engine sizes, and there is no doubt that up to 4½-litres we must be prepared to be highly competitive in the future. I would, therefore, like to have your assurance that you will treat cars up to 4½-litres on a competitive basis.

Yours sincerely,
  
  


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