Rolls-Royce's CEO on how the brand increased sales by 25% in 2019, and preparing to electrify the world's most famous luxury car brand
- Rolls-Royce posted a huge sales increase for 2019, selling 25% more vehicles than in 2018.
- It was a record result, following 2018's record.
- The surge was driven by the Cullinan, Rolls-Royce's first SUV.
- CEO Torsten Müller-ötvös spoke to Business Insider about the results, the brand's expectations for the future and for China, and about Rolls Royce's plan to market a full-electric vehicle in the coming decade.
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Rolls-Royce, the 116-year-old luxury automaker, doesn't sell a lot of cars.
It doesn't need to; Rolls Royce ownership is something of a privilege, and the brand's vehicles are among the most expensive in the world. But for two straight years, the company, owned by the BMW Group, has posted sales records.
The 2019 mark was something to brag about. After selling 4,107 vehicles in 2018, Rolls closed out 2019 with 5,152 - a 25% jump.
Much of that impressive result was due to the Cullinan, Rolls' first SUV. The $300,000-plus 'ute proved that the stately carmaker, long known for its elegant sedans and lovely cabriolets, could successfully join the global wave of ultra-high-end haulers. If Bentley and Lamborghini could do it - and if even Ferrari is now planning to join the trend - then Rolls-Royce didn't want to be left out.
"I'm very glad for that car," CEO Torsten Müller-ötvös said in a phone interview with Business Insider following the release of the full-year sales tally.
Müller-ötvös knew, of course, that Cullinan (named for the largest uncut diamond ever found, in 1905) was going to turn in an impressive performance.
"We launched on a strong order book," he said.
But he also noted that while Cullinan delivered the goods in key markets such as North America, Rolls' largest, the SUV wasn't the whole story.
"All markets worldwide contributed at similar levels," he said.
Looking forward to a good 2020, better business in China - and an all-electric Rolls
Müller-ötvös admitted that he doesn't expect 2020 sales growth to match the pace of 2019, but he said that he didn't anticipate a dropoff, either, absent major market disruptions.
As for Rolls Royce's second-largest market, China, he expressed relief that a new trade agreement with the US could soon be a reality, enabling aspiring Roll-Royce customers in China to again consider purchasing a vehicle.
"Twenty-five percent of all our volume goes there," the carmaker's CEO said.
He added that "I see the China market as having great potential for the brand," Müller-ötvös said, citing expected growth in high-net-worth individuals in the region.
Looking forward, he expressed excitement about a new Ghost, as the 11-year-old sedan was retired in its current generation last year to make way for a redesign of the grand four-door. The next generation should be launched in mid-2020 and go on sale by the end of the year.
As for expanding on Cullinan's success with more SUVs, Müller-ötvös said that he was "very comfortable" with the brand's portfolio. But he leapt at the opportunity to remind that Rolls has committed to bringing to market a fully electric vehicle, bearing the Spirit of Ecstasy ornament.
"That will happen this decade," he said.