Rolls-Royce faces a big problem – Observer


All car manufacturers – and others – established in the UK are increasingly desperate about the way politicians deal with Brexit. Of course, there are still some who believe that "things" will improve after outside the European Union (EU), but companies that are responsible for building cars, whether British or foreign, and inside or outside the European Union, are more on the verge nerve fit.

Modern cars consist of a generous set of parts, linked together and in a certain order. On average, they are around 30,000, for conventional vehicles, Renault Clio or VW Golf, the respective segment leaders. Of course, as the size or sophistication of the vehicle increases, the number of spare parts increases, somewhat like the price. And the best examples come from brands like Bentley or Rolls-Royce, whose models need around 40,000 before they come back to life.

It is not surprising that Rolls – who were born in England but have long been bought by BMW Germany (around the same time as VW bought Bentley) – produced vehicles in the UK, which does not mean using a special part of the English language, or even made on the other side of the Strait English. Of the approximately 40,000 pieces that make up Rolls – on average, because the value varies according to the model – only 8% is produced in the UK, with the rest (more than 32,000) coming from other European countries.

In other words, with the confusion that Brexit will provoke on the border, where only for Rolls, around 35 trucks per day, it's enough that one of them is stored where production is disrupted. From a logistical standpoint, this represents a headache that in the long run can make Rolls-Royce look for another stop to regulate their vehicle. The company's CEO Torsten Müller Ötvös took the opportunity to deliver a message stating that "Rolls will not leave the UK in the near future," leaving in the foreground that, if it hasn't changed, it might change in recent days.

Rolls-Royce, which requires around 800 hours to produce one of its models, sees a sales increase of 20% in 2018. And now, with Cullinan, he expects further improvement in 2019. However, this does not lead to forgetting that he has 600 European parts suppliers, not English, fought a small number of locations, making it easier to exchange Britain, where Rolls was born in 1904, by other European countries, if border formalities caused too much efficiency losses and the British Government refused to pay bills.

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