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 from the Chairman of Rolls-Royce of America to Rolls-Royce Ltd. regarding the new 'Phantom' model's production, pricing, and sales strategy.
| Identifier | ExFiles\Box 72\2\ scan0079 | |
| Date | 8th September 1926 | |
| COPY. Rolls-Royce of America Inc. Office of the Chairman and President, 40 Wall Street, New York. September 8th 1926 Mr.Basil Johnson, Rolls-Royce Ltd., 15, Conduit Street, London, W.l. England. Dear Johnson: Yours of August 23rd, BJ7/D23826, received. The first 'Phantom' with left-hand steering made from jigs and tools went to test last week. Two more go to test this week, and from now on we expect a steady flow of product in increas-ing volume, and we are really to be congratulated upon having appar-ently passed the gap from one to the other without any shut-down or interruption to our regular routine work, which is a marvelous accom-plishment from the standpoint of our people at the Works. By the time this reaches you we shall have issued instructions to our sales force as to the terms and conditions under which these cars will be offered. The first 30 or 40 cars which come through will be without front wheel brakes, but thereafter all will be equipped with front wheel brakes. The price will be $2,000 higher than our present chassis prices. In other words, we shall sell the complete cars at the prices which you have in your hands plus the $2,000. We shall make no trade-ins on our cars until our present 130 odd cars, including 40 demonstrators, of the old model are dis-posed of, at which time we will probably be forced to resort to our former bad practice, which seems to be unavoidable in this country. In other words, we are hopeful that for a period of 6 months the reputation and prestige of the 'Phantom' will enable us to sell for cash at a slightly higher price such cars as we produce. Whether we shall then decrease the price or not remains to be seen. We rather anticipate that we will have to do so, although it must not be overlooked that there have been 60 'Phantom' cars to date brought to America, the average cost of which is approximately $4,000 more than our present prices. We hope that this method of meeting our situation will meet with your approval. We are tremendously anxious to pay a dividend on our Preferred Stock and the pressure on the part of our shareholders for it has become very strong. Very sincerely yours, (Sgd) H.J.Fuller. | ||