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).
Competitor analysis of American cars and the impact of UK HP tax on a new big car project.
| Identifier | ExFiles\Box 19\1\ Scan223 | |
| Date | 9th September 1932 | |
| SECRET. x7120. To R.{Sir Henry Royce} from SS{S. Smith}? Copy to WGH. H.{Arthur M. Hanbury - Head Complaints} Hs.{Lord Ernest Hives - Chair} DH.{D. Henderson - Showroom} re 40/50. Sg{Arthur F. Sidgreaves - MD}16/E9.9.32 Many thanks for R1/M8.9.32. I think we are convinced here that we need more cylinders than 6 for the new big car, and I am sure W. are of the same opinion. In regard to Hs.{Lord Ernest Hives - Chair}3/AD8.9.32 we must not forget the HP tax. The 16-cylinder Cadillac may be a wonderful car and quite all right in America for the luxury market where the HP tax does not arise, but the tax on it in this country is £58 and puts it out of court for any serious business. The tax on the 12-cylinder Cadillac is £47 which is higher than our proposed 12-cylinder made up of a double 20 although the cc of the double 20 is bigger, which seems all to the good. In regard to the Lincoln, we need not worry about the 8-cylinder because, as Hs.{Lord Ernest Hives - Chair} says, this car is obsolete. The cc., as he says, of the 12-cylinder Lincoln is $ 7350 and the tax £51. The tax of the Pierce Arrow is £50. The question of what we are going to buy is rather difficult. We obviously do not want to build a car with an engine the size of the Pierce Arrow or the 12-cylinder Lincoln so that, unless it is from the point of view of seeing what it is we are up against, there would not seem much object in buying one of these. We could doubtless easily get hold of one to try. The most suitable size of the American cars, therefore, seems to be the 12-cylinder Cadillac. I mentioned in a memo some months ago that a friend of one of our people here owns one so that we could get hold of it for a trial on our own and see what it is like before deciding to buy one. Sg.{Arthur F. Sidgreaves - MD} | ||