Saturday, January 26, 2008

Finding The Phantom Market

Rolls-Royce is in trouble. Why? The killer competition to begin with. Since 1999, the tables long in Rolls-Royce's favor turned to Bentley; once a mere shadow of an automotive sibling, the marque became a separate full fledged rival when the VW-Audi Group took control. Bentley is now commited for the first time to producing 5,000 cars per annum. That accounts for nearly four times more new Bentleys than new Rolls-Royces being driven on the roads every year.
The Bentley range is far more dynamic than Rolls': they offer the Azure Convertible, the Arnages R, T, and RL, the Continentals GT, GT Convertible, and Flying Spur. Rolls-Royce offers the Phantom in both standard and long wheelbases and for a limited period a red label special edition Phantom that sold for nearly three times the price of an ordinary Phantom (and offering little new or different). Bentley has outgunned Rolls-Royce at nearly every corner, offering models of similar prestige starting from 1/3 the cost of a new Phantom.
Furthermore, with Bentley offering two new convertibles to premier on the street next year, Rolls-Royce is a long way off to 2007 with the introduction of the Corniche, a much tamer version of the bold 100EX "Experimental Car". In addition, BMW has announced that a smaller, probably cheaper Rolls will be built sometime thereafter. Were it to be the sole replacement of the grand Phantom, the marque would undoubtedly be devalued. However, were it to be an addition to the line (as it probably will be), it would be like selling a Silver Shadow alongside a Silver Cloud- there would be clear markets for both as both were popular.
That said, Rolls-Royce's timetable is uncompetitive. Though only other super luxury marque in worse shape both in terms of lineup and sluggish development is Mercedes-Benz's Maybach. Both manufacturers seem in the production slow lane while Bentley is miles ahead. The $350,000+ price tag for both Phantoms and Maybachs make Bentleys relative bargains and in no respect due either the Phantoms or Maybachs perform better over the Bentleys in any category. The only trump card for Rolls-Royce is its longstanding reputation that the marque has relied upon during past tough times. In the U.S., celebrities such as Jennifer Lopez and 50 Cent ride in Phantoms (though they also ride in Continental GTs). To be sure, Rolls-Royce sales are strong now, but there is no guarantee that they will remain so, and certainly not in the face the potent Bentley.
I have spied the new Phantom in Miami, Newport (RI), Greenwich (CT), and New York. In traditional Rolls havens London and Hong Kong I have not seen any. According to the company website, there are strong demands from the Asian (most likely mainland Chinese) and Middle Eastern markets, however, the sales numbers in Europe are low, especially in the United Kingdom. This constitutes Rolls' greatest challenge as Europe constitutes home soil for the marque. With Bentleys recording record sales there, the flying lady really has some catching up to do.

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