Will Rolls remain independent?
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by Gibb Grace • Rolls-Royce Motors Ltd, which makes the Eagle diesels as well as Rolls-Royce cars, is being offered for sale as an integrated unit, with a reserve price of £35m. The outcome of the offer for sale will be known by May 4 and if bids do not reach the reserve price, the company could be floated using public money.
Although British Leyland is both a Rolls-Royce supplier and customer (it uses Eagle engines in some of its Scammell and Guy trucks) it is not a likely bidder for Rolls. BLMC is unlikely to wish to add yet another unit to a group which it is still rationalizing, and in any case does not have the spare capital for a purchase of this nature. On the other hand. Leyland has made it clear in the past that it would like to see Rolls-Royce remain in the market as a British independent.
Considerable interest has been shown in Rolls-Royce Motors by companies in the USA, Germany and Japan, but it has been made clear by the vendors that no foreign buyer would be allowed to use the Rolls name and symbol on cars.
The Eagle engines, used in certain trucks produced by all the UK "independent" heavy-vehicle makers, have gained in popularity in recent years; they now have about 17 per cent of the UK heavy diesel market, and Rolls expects the 1973 output to be a third up on last year, with a further increase in 1974.
With annual turnover in the region of £10m, and the company looking to expand its workforce by a further 200 from the present 2300, business is obviously good and a public flotation may be the best answer for all concerned.