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).
Strategy document outlining cost reductions, pricing, and operational plans involving the American and English companies.
| Identifier | ExFiles\Box 11\3\ 03-page357 | |
| Date | 1st January 1930 guessed | |
| -3- It appears to be as follows :- 1st. Utilize in every way possible the Engineering developments, technical knowledge and manufacturing facilities of the English Company. 2nd. Import from England selected major units of both the Phantom II and the 20/25 HP chassis. 3rd. Arrange the invoicing classifications to make possible the paying of the minimum amount of duty. 4th. Take advantage of and utilise to the fullest extent the facilities which remain at Springfield. 5th. Through reduced cost be able to offer to the public complete cars at a price which will greatly reduce sales expense through increased volume. The desirable and reasonable achievement of the American Company would be to have the operations result in net earnings of 10% on invested capital, after providing for 7% dividend on Preferred Stock and absorbing all operating expenses, depreciation and fixed charges. We are of the opinion that providing the accumulated costs can be reduced so that it will be possible to offer to the public complete cars at an average list price of :- Phantom II £3000 20/25 HP £1900 that the volume of sales will be such as to result to the mutual advantage of both companies. In order to accomplish the above it will be required that the English Company take into consideration in arriving at a price to sell units and/or parts to the American Company not only any reduction in direct labour, i.e. applied man hours, and savings in material costs, but reduction in establishment charges through increased volume and all advantages to the English Company, which are bound to result from such a cooperative, arrangement. Duty paid in U.S.A. of more than £500 per chassis benefits neither the customer, nor the English, nor the American Company, therefore, a first consideration is the need to find the way to reduce the outlay for Customs Duty to an absolute minimum. Henry Keyes Comptroller. | ||