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).
To Mr. E. Hives discussing cost reduction strategies to increase car sales in America.
| Identifier | ExFiles\Box 19\4\ Scan245 | |
| Date | 19th December 1930 | |
| COPY. Mr. E.{Mr Elliott - Chief Engineer} Hives, Rolls-Royce Ltd. Derby, England. December 19th 1930. Dear Hives, I am writing this memorandum to you in duplicate. It concerns the problem of cooperating to reduce costs, so that the resultant selling price of Rolls-Royce cars complete at retail will insure a volume of orders year in and year out that will provide a satisfactory outlet for a considerable proportion of Derby Works' capacity and make the effort in America a bit better than "all square". First: Enclosed is a memorandum by Mr. Olley, written in August of this year, after his return from England and before his engagement with General Motors - Cadillac Division. Mr. Olley's memo will speak for itself. Second: Enclosed is a memorandum by our Comptroller, Mr. Henry S. Keyes, which was prepared by him during your recent visit here. Third: An analysis based on assuming ultimate revised list price on the 20/25 HP car, which one day you may reach, a price of £1400 for the complete car at retail, as we believe you must do in order to meet the need of Sales for lower selling price. This shows that there is reason to believe the complete cost of chassis at Springfield, based on the import of units, could be less than £900. So that the small car could be offered to the American buying public, as a complete car, at retail at less than £1900. You heard the statement, several times repeated by Messrs. Fuller, Hosac, Inskip, Hiltz and Kerr, that on such price basis there could be no doubt of selling four to five hundred of these 20/25 cars per year in America, in due time. | ||