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).
Production strategy for the 20 HP chassis, covering sales, modifications, and financial implications.
| Identifier | ExFiles\Box 180\M2\M2.2\ img004 | |
| Date | 12th April 1929 | |
| Notes on 20 HP Chassis. Sg{Arthur F. Sidgreaves - MD}16/E12.4.29 - 2 - As per the attached copy, and I enclose copy of his reply. You will see that he suggests: 1. That we should introduce some more modifications on the batch of 150 already in hand. 2. That we should generally slow up production of that 150. 3. That we should order no more material until such time as he is able to give us an improved chassis. I am afraid that he has taken my remarks in regard to sales of 20's having fallen off more seriously than was intended, as whilst it is true that sales have fallen off, it is quite clear that the 20 is a thoroughly good car and one which is not by any means injuring our reputation, but generally speaking it is a source of great delight to its owners, but at the same time we believe sales would be increased if it had a little more power. We are as you know going to have great difficulty this year with maintaining our turnover and profit by reason of the introduction of the "SS{S. Smith}" chassis, all of which was appreciated by the Board when the decision was taken to put it into production, and I am afraid that I could not possibly recommend the Board to adopt suggestions which would necessarily incur a still further reduction in turnover and profits, and it is quite obvious that this would be the effect if we were (1) now to try to introduce further modifications on the 150 chassis going through because it must necessarily interfere with output, and the same remarks apply with even greater force to the (2) suggestion of slowing up production and (3) not ordering more material. Captain Turner has worked out for me that the loss, if we stop manufacturing 20's, would be at least £10,000 per month. This includes loss of profit and losses due to unabsorbed fixed and semi-fixed overhead charges. A reduction in output from 7 to 6 chassis per week would be one-seventh of the above figure and so on. Material ought to be ordered immediately if continuity of output is to be maintained, and if we were to hold up pending our ability to produce something new, there might be a gap of many months or even a year or more. Dealing with Mr.Royce's memo. of the 8th, Items 2, 3 and 4. The position is that, whilst the 40/50 HP | ||