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Rolls-Royce Limited is a historic British multinational engineering firm founded in the early 20th century, famous for luxury automobiles and high-performance aircraft engines. Over its decades-long history, the company has undergone major restructuring, separating its automotive and aerospace businesses and becoming a leading global provider of power systems for aviation, marine, and energy sectors.
Key moments
1904Charles Rolls and Henry Royce form a partnership to develop luxury motor cars
1906Rolls-Royce Limited is officially incorporated
1931Acquires Bentley Motors to expand its luxury automotive portfolio
1971The company faces financial collapse and is nationalized by the British government
1973Split into two separate entities: Rolls-Royce Motor Cars (automotive) and Rolls-Royce Holdings (aerospace and industrial power)
1998The automotive business is sold, with trademark rights later acquired by BMW Group
2003BMW launches the new Rolls-Royce Phantom under the revived automotive brand
Rolls-Royce Limited (now primarily focused on aerospace and industrial power) competes in two key global markets:
Commercial Aircraft Engines: Competes directly with GE Aerospace and Pratt & Whitney, holding a significant share of the wide-body aero engine market with its Trent engine family.
Marine and Power Systems: Rival companies include Caterpillar, MTU (a subsidiary of Rolls-Royce Power Systems' competitor), and Wärtsilä, providing propulsion and power generation solutions for ships, railways, and critical infrastructure.
The luxury automotive arm, now under BMW Group, competes with other ultra-luxury brands like Bentley, Ferrari, and Maybach (Mercedes-Benz).
Top aerospace rivals: GE Aviation, Pratt & Whitney
Top marine/power rivals: Caterpillar, Wärtsilä
Luxury auto rivals: Bentley, Ferrari, Mercedes-Maybach
Rolls-Royce Limited stands as one of the most iconic and respected engineering brands globally, with a century-long legacy built on precision, innovation, and uncompromising quality. Its dual historical footprint in luxury automobiles and high-performance aerospace systems has created a unique brand identity that blends time-honored craftsmanship with cutting-edge industrial technology. Even after major corporate restructuring that separated its automotive and aerospace divisions, the brand retains unparalleled reputation for engineering excellence across core markets of aviation, marine propulsion, and energy power systems.
The brand's equity is deeply rooted in consistent delivery of reliable, high-performance solutions to global industrial customers. Rolls-Royce has successfully adapted to shifting industry demands, particularly accelerating development of sustainable power technologies to align with the global transition to net-zero carbon emissions. Its long-standing reputation for quality and innovation allows it to command premium positioning and maintain strong customer loyalty across all its core operating segments.
As a British engineering icon, Rolls-Royce Limited benefits from strong cultural association with excellence and precision, which extends beyond its industrial customer base to general global public recognition. This cross-sector recognition gives it a unique brand advantage over competing industrial firms that lack the same level of mainstream brand awareness and heritage.
Brand leadership
Score: 88/100
Rolls-Royce holds a leading share of the global wide-body commercial aircraft engine market, competing effectively with major rivals GE Aerospace and Pratt & Whitney, and is recognized as a top innovator in advanced power systems for aerospace, marine and industrial applications. Its engineering leadership sets industry benchmarks for performance, fuel efficiency and reliability, cementing its status as a trusted partner for leading aircraft manufacturers and energy infrastructure operators worldwide.
Customer interaction
Score: 82/100
The brand maintains deep, long-term relationships with key business clients including major airlines, defense contractors and energy firms, with a strong focus on aftermarket service and support that drives ongoing customer loyalty. While its core business-to-business industrial model means lower mass consumer interaction compared to the BMW-owned luxury automotive division, its engagement with industry stakeholders remains robust, relationship-focused and high-trust.
Brand momentum
Score: 79/100
Rolls-Royce has accelerated investment in sustainable aviation technologies, including hydrogen-powered combustion engines and hybrid electric systems, positioning itself for long-term growth in the global net-zero transition. After navigating pandemic-era aerospace downturns, the company has recovered its order backlog and expanded its presence in the fast-growing sustainable energy sector, supporting positive brand momentum across core markets.
Brand stability
Score: 90/100
With over 110 years of operational history and a consistent track record of quality delivery, Rolls-Royce has demonstrated exceptional brand stability through multiple economic cycles, corporate restructurings and industry disruptions. Its strong, trusted reputation among customers and industry partners creates a solid foundation that mitigates market volatility and supports long-term operational resilience.
Brand heritage age
Score: 95/100
Founded in 1906, Rolls-Royce is one of the oldest continuously operating engineering brands in the world, with a rich heritage that forms a core component of its brand equity. The century-long legacy of craftsmanship and innovation adds significant intangible value, with brand age acting as a powerful signal of trust and enduring quality for customers across all its served sectors.
Industry profile
Score: 87/100
Rolls-Royce is a globally recognized leader in the aerospace and industrial power generation sectors, with an exceptionally high profile among industry decision-makers and strong mainstream public recognition thanks to its iconic brand legacy. It is widely cited as a leading example of British engineering excellence, and its innovations in sustainable power receive consistent industry attention, boosting its overall industry standing.
Global brand reach
Score: 85/100
Rolls-Royce operates manufacturing, research and service facilities across North America, Europe, Asia and Oceania, serving customers in more than 150 countries worldwide. Its major engine programs are developed through international partnerships, and it maintains a truly global supply chain and customer base, making it one of the most globally integrated industrial engineering brands in the world.
AI can support reasoning around the brand value of Rolls-Royce Limited, with all generated figures being illustrative only. For an independently audited, official brand value assessment, contact World Brand Lab directly.
foundation
Manchester, United Kingdom
1906 (as a private company)
1971 (as a state-owned company)
defunct
April 1987
founders
Charles Rolls
Henry Royce
location city
Derby
location country
United Kingdom
key people
Claude Johnson
Ernest Hives
Adrian Lombard
products
Automobiles
Civil and military aero-engines
Marine propulsion systems
Power generation equipment
subsid
Significant subsidiaries
1931: Bentley Motors
1939: Park Ward
1959: H. J. Mulliner & Co.
1961: Mulliner Park Ward
1966: Bristol Aircraft Holdings
–Bristol Aeroplane Company
–Bristol Siddeley Engines
1973: Rolls-Royce Motors
Rolls-Royce Limited was a British luxury car and later an aero-engine manufacturing business established in 1904 in Manchester by the partnership of Charles Rolls and Henry Royce.Building on Royce's good reputation established with his cranes, they quickly developed a reputation for superior engineering by manufacturing luxury cars.The business was incorporated as "Rolls-Royce Limited" in 1906, and a new factory in Derby was opened in 1908.The First World War brought the company into manufacturing aero-engines.Joint development of jet engines began in 1940, and they entered production in 1944.[1] Rolls-Royce has since built an enduring reputation for the development and manufacturing of engines for military and commercial aircraft.
In the late 1960s, Rolls-Royce was adversely affected by the mismanaged development of its advanced RB211 jet engine and consequent cost overruns, though it ultimately proved a great success. In 1971, the owners were obliged to liquidate their business. The useful portions were bought by a new government-owned company named "Rolls-Royce (1971) Limited", which continued the core business but sold the holdings in British Aircraft Corporation (BAC) almost immediately and transferred ownership of the profitable but now financially insignificant car division to Rolls-Royce Motors Holdings Limited, which it sold to Vickers in 1980. Rolls-Royce obtained consent to drop the '1971' distinction from its company name in 1977, at which point it became known once again as "Rolls-Royce Limited".
The Rolls-Royce business remained nationalised until 1987 when, after having renamed the company to "Rolls-Royce plc", the British government sold it to the public in a share offering.Rolls-Royce plc still owns and operates Rolls-Royce's principal business, although, since 2003, it is technically a subsidiary of Rolls-Royce Holdings plc, a listed holding company.
Motor cars
Henry Royce started an electrical and mechanical business in Manchester in 1884.He was first introduced to motor cars via a small De Dion-Bouton four-wheeler that had been purchased for him by business partner Ernest Claremont.In 1902 or 1903 he purchased a 1901 model two cylinder 10 hp Decauville.[2] While Decauville had a excellent reputation at the time Royce with his fascination for all things mechanical found many things that did not meet his high standards and so he began making improvements. At the time his company was suffering from the effects of a decline in trade due to a downturn in the economy and competition from other manufacturers which had depressed prices. To investigate whether the company should diversify into the manufacture of motor cars Royce produced three examples of his own 10 hp experimental design.[3]
Testing of the first engine on a dynamometer began on 16 September 1903.[3] The first assembled car was completed by 1 April 1904 and taken by Royce for a 30 mi drive to his home in Knutsford and back.[3] A week later it was dispatched to coachbuilder to have a body fitted.
Postwar diversification
Motor bodies
After the war, in 1946, Rolls-Royce and Bentley car production moved to Crewe where they began to assemble complete Rolls-Royce and Bentley cars with body pressings made by the Pressed Steel Company (see W. A. Robotham). Previously they had built only the chassis, leaving the bodies to specialist coach-builders. In 1939, Rolls-Royce brought one of the specialist coachbuilders completely in-house by buying the remaining capital of Park Ward Limited which, since 1936, in conjunction with Rolls-Royce had been building short production runs of all-metal saloon bodies on Bentley chassis.
In 1959, Rolls-Royce bought coachbuilder H J Mulliner[4] and the two businesses were put together as H J Mulliner Park Ward.
Diesel engines Shrewsbury
Luxury cars did not fit with the new mood of post-war austerity. After starting design and development of what became their C series diesel engine range in 1948, Rolls-Royce began to produce diesel engines in 1951.By 1955, it provided diesel engines for automotive, railway, industrial, earth-moving and marine use.[4]
Aero-engines
In 1907, Charles Rolls, whose interests had turned increasingly to flying, tried unsuccessfully to persuade Royce and the other directors to design an aero engine. When World War I broke out in August 1914, Rolls-Royce (and many others) were taken by surprise. As a manufacturer of luxury cars, Rolls-Royce was immediately vulnerable, and Claude Johnson thought the bank would withdraw its overdraft facility on which Rolls-Royce depended at that time. Nevertheless, believing that war was likely to be short-lived the directors initially decided not to seek government work making aero engines. However, this position was quickly reversed and Rolls-Royce was persuaded by the War Office to manufacture fifty air-cooled V8 engines under licence from Renault.Meanwhile, the Royal Aircraft Factory asked Rolls-Royce to design a new 200 hp engine.Despite initial reluctance, they agreed, and during 1915, developed Rolls-Royce's first aero engine, the twelve-cylinder Eagle.This was quickly followed by the smaller six-cylinder Hawk, the 190 hp Falcon and, just before the end of the war, the larger 675 hp Condor.
Throughout World War I, Rolls-Royce struggled to build aero engines in the quantities required by the War Office.However, with the exception of Brazil Straker in Bristol, Rolls-Royce resisted pressure to license production to other manufacturers, fearing that the engines' much admired quality and reliability would risk being compromised. Instead the Derby factory was extended to enable Rolls-Royce to increase its own production rates. By the late 1920s, aero engines made up most of Rolls-Royce's business.
RB211—the 1971 receivership and nationalisation
The amalgamations and disappearances of the 1950s and 1960s left a small number of major airframe manufacturers based in only a few countries. The competition for the very large contracts to supply their engines grew intense. Expensive research and development became vital. Real profits came from the maintenance contracts which might peak a whole human generation later. By the 1980s it was said that each generation of aero engines cost around 10 times that of its parent.[21]
At this time Rolls-Royce employed 80,000 people and it was Britain's 14th largest company in terms of manpower. It was generally known that problems had recently arisen requiring government support of the RB211 programme as one outcome of intense financial competition with Pratt & Whitney and General Electric[22] for the original RB211 contract.[23]
In the new year of 1971 financial problems caused largely by development of this new RB211turbofan engine designed and developed for Lockheed Aircraft Corporation
1973 Rolls-Royce Motors
Rolls-Royce Motors Limited was incorporated on 25 April 1971, two and a half months after Rolls-Royce fell into receivership. Under the ownership of the receiver, it began to trade in April 1971 – manufacturing motor cars, diesel and petrol engines, coachwork and other items previously made by Rolls-Royce's motor car and diesel divisions and Mulliner Park Ward. It continued to take on precision engineering work on sub-contracts.
In June 1971, it acquired all the business and assets used by the motor car and diesel divisions of Rolls-Royce and Mulliner Park Ward. Rolls-Royce Motors' permitted uses of the various Rolls-Royce trade marks were very precisely defined.[4]
At the end of 1972, Rolls-Royce Motors employees in the United Kingdom numbered 5,855 in the car division and 2,311 in the diesel division, for a total of 8,166 people.[4] In May 1973, the business was sold to Rolls-Royce Motors Holdings Limited in preparation for its public flotation.[4]
Car Division
1977 Rolls-Royce drops (1971) from its name
The name of Rolls-Royce (1971) Limited was changed to Rolls-Royce Limited on 31 December 1977 the end of the company's financial year. The original Rolls-Royce Limited incorporated in 1906 and still in liquidation had been renamed R-R Realisations Limited[37] and had consented in March 1977 to the (1971) company being named Rolls-Royce Limited[38][39][40]
Limited was replaced by plc (public limited company) in the summer of 1986 so shares could be offered to the public and traded on sharemarkets.[41]
1987 privatisation
In April 1987, the government offered for sale all Rolls-Royce plc shares. The heavily advertised issue was a remarkable success.[42]
Rolls-Royce's was an exceptionally long-term business. Before a civil aero engine went into service, its development could take 4 to 6 years, military engines often longer. Production might then extend a further 50 years including the manufacture of spare parts required long after complete engine production ends.[40]
Competition
Rolls-Royce's competitors were GE and Pratt & Whitney (UTC). Aero engines were then only a part of GE and UTC activities as major industrial groups.
A marketing survey in 1987 showed that only Coca-Cola was a more widely known brand than Rolls-Royce.[43]
Products
Cars
Bentley Models (from 1933) – chassis only
chassis-only, no Rolls-Royce built Rolls-Royce body until Silver Dawn
The other two cars were completed and fitted with bodies soon after.
After initially being assigned the first car Claremont was given the second car to use.
Initially he often had a horse drawn Hanson cab follow behind in case the car failed to proceed.[3] The third car was sold to one of the other company fellow directors, Henry Edmunds.[2] Edmunds was a friend of Charles Rolls who was proprietor of an early motor car dealership, C.S. Rolls & Co. in Fulham selling imported models.[4] Edmunds showed Rolls his car and arranged for a meeting between Rolls and Royce at the newly opened Midland Hotel, Manchester, on 4 May 1904.
In spite of his preference for three- or four-cylinder cars, Rolls was impressed with the Royce 10, and in a subsequent agreement on 23 December 1904 agreed to take all the cars Royce could make. There would be four models:
All would be badged as Rolls-Royces and be sold exclusively by Rolls in framed chassis form for the customer to arrange his own body supplier, with London coachbuilder Barker & Co. recommended.From its establishment Rolls-Royce didn’t produce complete cars until the introduction of the Silver Dawn in 1949.Instead, they produced a framed chassis with engine, gearbox and transmission, to which a body was fitted by a variety of coachbuilding companies, including Barker & Co., Hooper, H. J. Mulliner & Co., Park Ward and James Young.
The first Rolls-Royce cars, the 10 hp, 15 hp, 20 hp as well as the engine for the 30 hp were unveiled at the Paris Salon in December 1904.[5] As the new three-cylinder 15 hp engine was not ready the chassis was incomplete. The 10 hp was similar to the earlier Royce car, but with further design and mechanical improvements.
In 1905 Royce designed a V-8 but only three were produced, of which one was sold before later being taken back by the company.
a 10 hp, two-cylinder model selling at £395, about £0 in 2021,
a 15 hp three-cylinder model selling at £500, about £0 in 2021,
a 20 hp four-cylinder model selling at £650,about £0 in 2021,
a 30 hp six-cylinder model selling at £890, about £0 in 2021,
Incorporation
In 1906 Rolls and Royce formalised their partnership by creating Rolls-Royce Limited, which was registered on 15 March 1906 with capital of £60,000 with Royce appointed chief engineer and works director on a salary of £1,250 per annum plus 4% of the profits in excess of £10,000.[6]Claude Johnson who had joined the company as Commercial Managing Director and Rolls both received £750 per annum and 4% of the profits.[7] While the salary was less than the £1,000 Johnson had been receiving at the Automobile Club, he had a greater potential to earn more due to his profit share.
To increase the company’s capital to £200,000 it was floated on the Birmingham Stock Exchange on 11 December 1906 with £100,000 of shares made available to the public to acquire the business of C.S. Rolls & Co.[6] However by the day before the flotation it was apparent that only £41,000 of the required minimum subscription of £50,000 shared had been subscribed to.[6] off these Royce had purchased £10,000. The issue was resolved by company secretary John De Looze rushing from Manchester to Harrodgate to see wealthy businessman Arthur Harry Briggs, who had purchased the first “Light Twenty” car. Briggs agreed to purchase £10,000 worth of shares and in return was given a seat on the board. On 9 January 1907 it was announced that £63,000 had been raised.[6]
The original directors were Arthur Harry Briggs. Ernest Claremont, Claude Johnson, C. S. Rolls and F. H. Royce.[8] In 1907 Johnson recruited Lord Herbert Scott as a director, as he believed that having an aristocrat on the broad would make its cars more appealing to the wealthy.[9]
The need to increase the company's capital had been mainly driven by the need for bigger premises if they were to increase production. After considering sites in Manchester, Coventry, Bradford and Leicester, it was an offer from Derby's council of cheap electricity that resulted in the decision to acquire a 12.7 acre site on the southern edge of that city.The new factory was largely designed by Royce, and production began in early 1908, with a formal opening on 9 July 1908 by Sir John Montagu.
Rolls-Royce 40/50
During 1906 Royce had been developing an improved six-cylinder model with more power than the Rolls-Royce 30 hp.Initially designated the 40/50 hp, this was Rolls-Royce's first all-new model.[11] In March 1908, Claude Johnson, Commercial Managing Director and sometimes described as the hyphen in Rolls-Royce,[12] succeeded in persuading Royce and the other directors that Rolls-Royce should concentrate exclusively on the new model, and all the earlier models were duly discontinued.[4] Johnson had an early example finished in silver and named, as if it were a yacht, Silver Ghost.Unofficially the press and public immediately picked up and used Silver Ghost for all the 40/50 cars made until the introduction of the 40/50 Phantom in 1925.[13]
The new 40/50 was responsible for Rolls-Royce's early reputation with over 6,000 built. Its chassis was used as a basis for the first British armoured car used in both world wars
Rolls-Royce Eagle aero-engine
Aero-engine manufacturing began in 1914 at the government's request.[4] The first model, the Rolls-Royce Eagle, entered production in 1915.Two Eagles powered Alcock and Brown's first non-stop trans-Atlantic crossing by aeroplane mounted on their converted Vickers Vimy bomber.
Springfield USA
In 1921, Rolls-Royce opened a new factory in Springfield, Massachusetts in the United States to help meet a three-year backlog demand where a further 1,703 "Springfield Ghosts" and 1,241 Phantoms were built. This factory was run by subsidiary Rolls-Royce of America, Inc., and operated for 10 years, with the first car being completed on January 17, 1921, that being a Silver Ghost with a documented chassis price of US$11,750 ($0 in dollars ). When the factory closed in 1931, 2,944 total vehicles had been produced. It was located at the former American Wire Wheel factory on Hendee Street, with the administration offices at 54 Waltham Ave.[15] Springfield was the earlier location for the Duryea Motor Wagon Company, the location where the first American gasoline-powered vehicle was built.Bodies for American assembly were supplied by Brewster & Co. in Long Island City, New York.[16]
Rolls-Royce Twenty
After the First World War, Rolls-Royce successfully avoided attempts to encourage British car manufacturers to merge. Faced with falling sales of the 40/50 Silver Ghost in short-lived but deep postwar slumps Rolls-Royce introduced the smaller, affordable Twenty in 1922, effectively ending the one-model policy followed since 1908.[4]
Death of Claude Johnson
Claude Johnson died on 12 April 1926 and was replaced as managing director by his brother Basil.
Basil Johnson resigned as managing director, on 31 January 1929 and was replaced as managing director by existing general manager Arthur Sidgreaves, who was also made director. At the same time general works manager Arthur Wormald, was also made a director. W. M. Cowan, who was London general manager, has become general manager of the company. Len W. Cox, who has been with the company since 1905, was appointed sales manager.[17]
Rolls-Royce Phantom
The new 40/50 hp Phantom replaced the Silver Ghost in 1925. The Phantom III, introduced in 1936, was the last large pre-war model. A strictly limited production of Phantoms for heads of state recommenced in 1950 and continued until the Phantom VI ended production in the late 1980s.
Bentley and Rolls-Royce
In 1931, Rolls-Royce acquired Bentley, the small sports/racing car maker and potential rival,[4] after the latter's finances failed to weather the onset of the Great Depression.Rolls-Royce stopped production of the new Bentley 8 Litre, which was threatening sales of their current Phantom, disposed of remaining Bentley assets and using just the Bentley name and its repute.
After two years of development Rolls-Royce introduced a new and quite different ultra-civilised medium-size Bentley, the Bentley 3½ Litre.Advertised as "the silent sports car" and very much in the Rolls-Royce mould, it was a private entry by Eddie Hall (but supported by Rolls-Royce) in the 1934, 1935 and 1936 RAC Tourist Trophy sports car races on the Ards Circuit, where it recorded the fastest average speed in each year (ahead of Lagondas and Bugattis). This helped the Sales Department as old Bentley customers had been inclined to doubt that the new Crewe Bentley could out-perform its famous predecessors.
Immediately after World War II (when fully tooled pressed-steel cars were produced in the factory, rather than chassis sent to a coachbuilder for a custom-built body) until 2002, standard Bentley and Rolls-Royce cars were usually nearly identical – Bentleys were badge engineered; only the radiator grille and minor details differed.
In 1933, the colour of the Rolls-Royce radiator monogram was changed from red to black; because the red sometimes clashed with the coachwork colour selected by clients, and not as a mark of respect for the death of Royce later that year as is commonly stated.
Crewe
The British government built a shadow factory in Crewe in 1938 for Rolls-Royce where they could build their Merlin and Griffon aero engines. Car production was moved there in 1946 for space to construct bodies and to leave space for aero engines at Derby. The site was bought from the government in 1973.[4] It is now Bentley Crewe.
Second World War
In 1940, a contract was signed with the Packard Motor Car Company in Detroit, Michigan, for the production of Merlin aero-engines for World War II in the USA.
Production focused on aero engines but a variant of the Merlin engine, known as the Meteor, was developed for the Cromwell tank.The Meteor's development completed in 1943 the same team at the Belper foundry restarted work on an eight-cylinder car engine widening its uses and it became the pattern for the British Army's B range of petrol engines for post war combat vehicles[4] in particular in Alvis's FV600 range,[19]Daimler's Ferret, Humber's Hornet and Pig and Austin
Sentinel (Shrewsbury) Limited was bought in 1956. Sentinel made machine tools and industrial locomotives. Rolls-Royce took over Sentinel's Shrewsbury factory for diesel engine production and all its diesel work was transferred there.[4]
West Riding manufacturer of diesel shunting locomotives, Thomas Hill (Rotherham) Limited, was added to the group in 1963.[4]
In 1973, when Shrewsbury activities were put under the umbrella of new owner, Rolls-Royce Motors, the range of diesel engines included:
C range: 4, 6, and 8 cylinder engines with power output from 100 to 450 bhp. Used in generating sets, compressors etc., construction equipment, railway and other industrial purposes and marine propulsion.
Eagle: a modified version of the C range 6-cylinder engine named Eagle is used in heavy vehicles, their output 200 to 300 bhp.
D range: V engines with outputs from 400 to 750 bhp for generating sets, marine and railway applications.[4]
Henry Royce's last design was the Merlin aero engine, which was first flown in prototype form in 1935, although he had died in 1933.
This was developed from the R engine, which had powered a record-breaking SupermarineS.6B seaplane to almost 400 mi/h in the 1931 Schneider Trophy.
The Merlin was a powerful supercharged V12 engine and was fitted into many World War II aircraft: the British Hawker Hurricane, Supermarine Spitfire, de Havilland Mosquito (twin-engine), Avro Lancaster (four-engine) (a development of the Avro Manchester with its unreliable Rolls-Royce Vulture engines), Vickers Wellington (twin-engine); it also transformed the American North American P-51 Mustang into a competitor for the best fighter of its time, its engine a Merlin engine built by Packard under licence.
Over 160,000 Merlin engines were produced, including over 30,000 by the Ford Motor Company at Trafford Park, Manchester.
During the war most Rolls-Royce flight testing of engines was carried out from Hucknall Aerodrome.
The Merlin crossed over into military land-vehicle use as the Meteor powering the Centurion tank among others.
Many Meteor engines used engine blocks and parts that failed requirements for high performance engines, but were suitable for use in the derated 480 kW Meteor.
In December 1942, over a "five-shilling meal" at the Swan and Royal hotel in Clitheroe, Stanley Hooker and Ernest Hives of Rolls-Royce agreed with Spencer Wilks of the Rover Car Company that Rolls-Royce would take over top secret work on the development of the jet engine.[20] An exchange of assets followed with Rover and in the post-World War II period Rolls-Royce made significant advances in gas turbine engine design and manufacture.The Dart and Tyneturboprop engines were particularly important, enabling airlines to cut times for shorter journeys whilst jet airliners were introduced on longer services.The Dart engine was used in Armstrong Whitworth AW.660 Argosy, Avro 748, Fokker F27 Friendship, Handley Page Herald and Vickers Viscount aircraft, whilst the more powerful Tyne powered the Breguet Atlantique, Transall C-160, Short Belfast, and Vickers Vanguard, and the SR.N4hovercraft. Many of these turboprops are still in service.
Amongst the jet engines of this period was the RB163 Spey, which powers the Hawker Siddeley Trident, BAC One-Eleven, Grumman Gulfstream II and Fokker F28 Fellowship.
During the late 1950s and 1960s there was a significant rationalisation of all aspects of British aerospace and this included aero-engine manufacturers. In 1966 Rolls-Royce acquired Bristol Siddeley (which had resulted from the merger of Armstrong Siddeley and Bristol Aero Engines in 1959) and incorporated it as the Bristol Siddeley division.Bristol Siddeley, with its principal factory at Filton, near Bristol, had a strong base in military engines, including the Olympus, Viper, Pegasus (vectored thrust) and Orpheus.They were also manufacturing the Olympus 593 Mk610 to be used in Concorde in collaboration with SNECMA. They also had a turbofan project with SNECMA.
According to the prospectus published for the 1987 issue of shares to members of the public Rolls-Royce was by then one of only three enterprises outside USSR and China able to design develop and produce large gas turbine engines. At that time its engines were installed in the aircraft of more than 270 civil carriers and were used by 110 armed services and 700 operators of executive and corporate aircraft.
In addition, its turbines powered the naval vessels of 25 different nations. Over 175 industrial customers operated Rolls-Royce gas turbines for power generation, gas and oil pumping and other industrial purposes. Its single most important customer was the United Kingdom's government. In the preceding five years about 70 per cent of production went outside the United Kingdom.
Leavesden Aerodrome, Watford was originally owned by the Ministry of Defence and used during World War II for the manufacture of Mosquito and Halifax aircraft. For a number of years, Rolls-Royce used the site for the manufacture of helicopter engines until the site closed in June 1993. The former Rolls-Royce factory at Watford is now known as the Leavesden Film Studios and has produced world-famous films, including the James Bond, Star Wars and Harry Potter series.
's new
L-1011 TriStar
led, after several government-provided cash subsidies, to the recognition Rolls-Royce had no resources left and it voluntarily entered receivership 4 February 1971.
There were said to have been acrimonious telephone conversations between US president Richard Nixon and the British prime minister Edward Heath but these were subsequently denied.Responding to questions as to how the situation could have arisen the chief executive advised that in their calculations they were guided by the success of their estimates in the launching of their Spey engine.[25]
Had the government simply nationalised Rolls-Royce it would have been unable to avoid the obligations to Lockheed.[26]
The situation was handled in the usual manner with the assets being sold for cash, in this case to the government, leaving the massive liabilities to be dealt with by Rolls-Royce Limited using the funds realised by the sale. However the government would not fix a purchase price for the assets until the situation became clearer because without a continuing business many of them might be worthless.[27][28][29] In the meantime the government would use the assets to continue the activities of the aero-engine, marine and industrial gas turbine and small engine divisions that were important to national defence, the collective programmes with other countries and to many air forces and civil airlines.[30] A new company (1971) was incorporated that May to purchase substantially the whole of the undertakings and assets of the four divisions of Rolls-Royce connected with gas turbine engines.The original company, Rolls-Royce Limited, was placed in liquidation on 4 October 1971.[4]
Asking their own government for support Lockheed warned that a switch to either Pratt & Whitney or General Electric engines would delay production by an extra six months and might force Lockheed into bankruptcy.[31]
The receiver negotiated with Lockheed which consented to waive damages allowing the plant to be shut down. The continuing support of the trade creditors was also achieved by the receiver in spite of threats to demand immediate payments in full and to withdraw supplies. The first asset sold was British Aircraft Corporation bought equally by Vickers and GEC.The receiver floated Rolls-Royce Motors in 1973.[26]
New board
The new owner, Rolls-Royce (1971) Limited, had among its board members Lord Cole (a former chairman of Unilever), Sir Arnold Weinstock (managing director of GEC), Hugh Conway (managing director Rolls-Royce Gas Turbines), Dr Stanley Hooker (Rolls-Royce Bristol), Sir William Cook (an adviser to the Minister of Defence), Sir St. John Elstub (managing director of Imperial Metal Industries), and Sir Charles Elworthy (former Marshal of the Royal Air Force and Chief of the Defence Staff).[32]
Lockheed and Rolls-Royce take-off
The new aircraft with its three RB211 engines left USA for the first time and arrived in Paris on 1 June 1971.[33] At Palmdale California the L-1011 received its US Federal Aviation Administration's certificate of airworthiness on 14 April 1972, nine months late.On the day the chairman of Lockeed said "...we know that in airline service it (RB211) will prove itself to be one of the leading power plants in aviation history".[34]
The first airliner was delivered to Eastern Air Lines on 5 April 1972 but it had been beaten in the race to production by McDonnell Douglas's DC-10.
At that time, the Car Division, as well as making cars and special coachwork, carried out investment foundry work and the machining of aero-engine components.
It also produced piston engines for light aircraft, together with other petrol and multi-fuel engines.
Both divisions carried out development work for the British government.
The car division's headquarters were in Pym's Lane and Minshull New Road, Crewe.Bespoke coachbuilding remained in Hythe Road and High Road, Willesden, London.The Crewe former shadow factory premises were bought from the government at this time.[4]
Diesel Division
The Diesel Division made several types of diesel engine at its premises in Whitchurch Road, Shrewsbury, as well as combustion equipment for aero turbine engines.[4]
Rolls-Royce Motors products:
Motor cars
Diesel engines
Aero turbine engine components and aircraft piston engines mainly for Rolls-Royce 1971
Other engines and products:
B range of 6 and 8-cylinder petrol engines
K range of multi-fuel engines
various transmissions for fighting and other vehicles
diesel shunting locomotives (Thomas Hill (Rotherham))[4]
Flotation of Rolls-Royce Motors Holdings
In the event, the flotation met with a disappointing public response, and more than 80 per cent of the issue was left in the hands of the underwriters.[35]
Merger with Vickers
On 6 August 1980, the shareholders' agreement to the merger of Rolls-Royce Motors Holdings and Vickers Limited became unconditional.[36] Vickers would sell Rolls-Royce Motors to Volkswagen Group in 1998 without the trademark, which was controlled by the aeroengine company, so it was renamed to Bentley Motors, with BMW then establishing a new manufacturer named Rolls-Royce Motor Cars.
Perkins Engines
The Rolls-Royce diesel business was acquired from Vickers in 1984 by Perkins Engines. Perkins further developed the Eagle Diesels into the Perkins TX series of engines.
Others included SNECMA, Turbomeca, MTU, Fiat Aviazione in Europe and USA's Avco, Garrett and General Motors' Allison. Despite the field being exceptionally competitive, a number of the smaller manufacturers were already in collaboration with GE or with other smaller manufacturers, as was Rolls-Royce as well.[40]
Divisions and products
At that time Rolls-Royce was organised into five business groups:
1. ICEG Civil Aero – demand governed by airline activity and profitability
major engines in 1987:
RB211-524, 535 series;
IAE V2500 for Airbus A320, a consortium of Rolls-Royce 30%, Pratt & Whitney 30%, JAEC 23%, MTU 11% and Fiat 6%
Tay, a development of the Spey superfan
engines out of production but generating a significant demand for spares
8.Rolls-Royce Grace's Guide To British Industrial History, 13 March 2023, retrieved 10 May 2025^
9.Pugh, The Magic of a Mame – The First Forty Years, pp. 44-48^
10.The Silver Ghost – This car was ordered with its Barker body painted silver, specifically to publicize their new 40/50 hp model, which ran "with extraordinary stealthiness". Its name "The Silver Ghost" was carried on a special repoussé plaque on its dashboard.It was finished with green leather, silver-plated fittings, aluminium dashboard^
11.The earlier models having been based on a Decauville owned by Royce.^
12.Wilton Oldham. The hyphen in Rolls-Royce: A biography of Claude Johnson Foulis, 1967^
20.Historic Pub is up for sale Lancashire Evening Post, 1 February 2020^
21.Rolls-Royce for the unsentimental. The Daily Telegraph, Thursday, 30 April 1987, Issue 41009, p. 15^
22.Broken Rules That Led to the Downfall of Rolls-Royce. The Times Friday, 5 Feb 1971; pg. 15; Issue 58091^
23.The Rolls-Royce RB.211 22m, developed for Lockheed, was a different engine than originally proposed to McDonnell Douglas for the DC-10. The RB211 was a member of the Advanced Technology Engine family that included the RB.207 for the Airbus A.300 and the RB.203 for the FH-228.^
24.Rolls-Royce collapse: state takeover move. The Times, Friday, 5 Feb 1971; pg. 1; Issue 58091^
25.Rolls-Royce former chief defends signing of RB 211 contract with Lockheed. The Times, Thursday, 2 Dec 1971; pg. 21; Issue 58340^
26."Rolls-Royce: a juicy liquidation". The Times, Thursday, 22 Dec 1977; p. 15; Issue 60193^
27."TI chairman pleads for full Rolls-Royce assets price". The Times, Friday, 14 Apr 1972; p. 15; Issue 58452^
28.The price for the aero engines division was not fixed until June 1973 but more than seven years passed before the liquidation was complete^
29."NEB challenges Rolls valuation". The Times, Friday, 30 Jul 1976; p. 17; Issue 59769^
30."Independent inquiry for any dispute on R-R assets". The Times, Saturday, 20 Mar 1971; p. 7; Issue 58126^
31."Lockheed warning on bankruptcy". The Times, Wednesday, 19 May 1971; p. 21; Issue 58176^
32.RB.211 negotiations Flight International, 4 March 1971, retrieved 11 April 2014^
33.TriStar engines surprisingly quiet. The Times, Wednesday, 2 Jun 1971; pg. 15; Issue 58188^
34."Licence for TriStar, the 'quietest jetliner. The Times, Monday, 17 Apr 1972; p. 19; Issue 58454.^
35.No signs of R-R Motors sell-out by institutions. The Times, Thursday, 2 Aug 1973; pg. 17; Issue 58850^
37.After initially being dissolved in 2004, it was returned to the companies register in 2010, 2015 and 2021 under court orders with its name being its original company registration number as 00087989 Limited^
38.Rolls-Royce drops 1971 from title. The Times, Tuesday, 7 Dec 1976; pg. 19; Issue 59880^
39.Rolls Royce. The Times Friday, 17 Mar 1978; pg. 23; Issue 60259^
40.Rolls-Royce Prospectus. The Daily Telegraph, Thursday, 30 April 1987, Issue 41009, pp. 19–32^
41.General Appointments, The Times, Thursday, 11 September 1986, Issue 62560, p. 15.^
42.R-R surges to 62p premium. The Times, Thursday, 21 May 1987; pg. 25; Issue 62774^
43."Rolls-Royce shares will fly". The Times, Wednesday, 29 April 1987; p. 25; Issue 62755^
44.Rolls Royce. The Times, Wednesday, 6 Oct 1965; pg. 8; Issue 56445^
.
Along with Geoffrey Rowe, Edward Goulding became a board member in 1911.[14] He was appointed Chairman in 1921 and remained in that position until he retired in 1936 and was succeeded by Lord Herbert Scott, who had recently retired from military service, which allowed to accept the position, which he occupied until his death in 1944.
