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).
Strategic letter discussing the launch timing and market impact of the EAC.II and EAC.IV models.
| Identifier | ExFiles\Box 69\2\ scan0052 | |
| Date | 1st February 1924 | |
| Y8770 To R.{Sir Henry Royce} from CJ. c. to Wor.{Arthur Wormald - General Works Manager} c. to Hs.{Lord Ernest Hives - Chair} c. to Rg.{Mr Rowledge} c. to C. c. to Fr. CJS/E14/2/24 My dear R.{Sir Henry Royce}, After we had received your telegram, in which you pointed out that EAC.II might be completed first but that we should still push forward with EAC.IV, I wrote to you that certainly we should push forward with EAC.IV, but we have had many conferences in which we have tried to picture the Sales position. The picture is at present very dim. We shall, however, be extremely fortunate if we are able to launch EAC.II as a sports model in July next. It may be that we shall be fortunate if we are able to show one at Olympia in the middle of October next. This is going to be a great shock to our Sales poss-ibilities because, although we may pretend that we are only making a few of these chassis with the new engine for speed maniacs, it must be recollected that the thinking buyers are daily expecting to see a 40/50 HP engine of the Goshawk type and they will quickly recognise that the sports car is the forerunner of the standard car and may therefore cease to buy the standard car, even if there be a gap of £400 or £600 between the prices of the new standard chassis and the new EAC chassis. For us to introduce EAC II after this great shock to our selling possibilities would, I feel, be suicidal. After the unavoidable but immeasurable dislocation of the business which has taken place since the 1st November last and which is likely to continue throughout this year, we must, I suggest, be very patient before we introduce EAC.IV. We must give the Works a chance to manufacture EAC.II in quantities and Sales a chance to sell EAC.II in quantities before we give the market another dig in the ribs by the introduction of EAC.IV. People will not be able to say call us old-fashioned if we give them a new engine and new four wheel brakes in one year. The Company cannot live unless the Works are given a chance to manufacture something definitely over a considerable period and the Sales are given an opportunity to sell a definite model over a long period. | ||