RE: 1115.50p18 Dec 2025 09:28
@Tim, you've asked this question all year, so as a christmas present - I asked google for you, heres the answer
Rolls-Royce sold its car division because the parent company went bankrupt in 1971, primarily due to massive cost overruns developing the RB211 jet engine, leading the British government to nationalize it and then sell off the car business (Rolls-Royce Motors) in 1973 to focus on aerospace. The car division then went through several owners, eventually being split between BMW (for Rolls-Royce) and VW (for Bentley) in 1998, with BMW taking full control of the Rolls-Royce brand in 2003.
The Initial Collapse & Government Intervention (1970s)
Financial Crisis: By the late 1960s, Rolls-Royce was a large conglomerate making aero-engines, diesel engines, and cars, but the development of the advanced RB211 jet engine led to huge financial losses and cost overruns.
Nationalization: In 1971, the company collapsed, and the British government nationalized it to save the crucial aerospace operations.
Separation: The government split the company: Rolls-Royce (1971) Ltd kept the jet engines, while the car-making part became Rolls-Royce Motors Ltd, which the government sold off in 1973.
Ownership Changes (1980s - 2000s)
Vickers Acquisition (1980): Rolls-Royce Motors was eventually bought by Vickers plc, an engineering group, but Vickers struggled with the luxury car business.
The BMW/VW Battle (1998): Vickers sold Rolls-Royce Motors to Volkswagen (VW) in 1998. However, BMW had been supplying engines and held rights to the Rolls-Royce name, giving them leverage.
Final Split (2003): A deal was struck where VW kept the Crewe factory and the Bentley brand, while BMW acquired the rights to the Rolls-Royce name, logo, and Spirit of Ecstasy, establishing Rolls-Royce Motor Cars as a separate entity under BMW ownership.