• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Trump tariffs? No problem, says Rolls-Royce CEO

by January 9, 2025
written by January 9, 2025

Rolls-Royce CEO Chris Brownridge, like many importers, is aware of President-elect Donald Trump’s plans to impose a range of tariffs on various countries.

However, he remains unperturbed, citing that business has rarely been better for the luxury carmaker, whose products start at $370,000.

The company’s resilience, particularly in the face of potential trade barriers, underscores the unique dynamics of the ultra-luxury market.

Record sales driven by bespoke commissions

The automaker, now celebrating its 121st year, sold over 5,000 vehicles in 2024, achieving its third-highest sales year ever.

This success comes even though the company released updated Cullinan SUV and Ghost sedan models midway through the year, a move that typically slows sales as customers wait for newer versions.

However, this had little impact on Rolls-Royce’s performance.

The company noted that its bespoke commissions, where clients pay premium prices for one-off customizations like specialized stitching or custom clocks integrated into the dash, are a rapidly growing part of its business.

Bespoke orders jumped 10% year over year and Rolls-Royce is heavily investing in this area, spending $370 million to expand such offerings and increase the number of Private Offices (client lounges) globally, where customers design their custom creations.

Bespoke means more time, revenue, and profit

“What we saw was a real increase in demand for our bespoke motorcars,” Brownridge told Yahoo Finance in an interview.

So we saw a real increase in the level of requests coming from our clients for motorcars with features which are very specific and personal to that particular client. And that’s coming off the back of our network of private offices.

For Rolls-Royce, bespoke customizations mean more time to create these unique automobiles, as well as increased revenue and profit.

Although Rolls doesn’t reveal its margin figures for these commissions, generally, customizations generate higher profit margins than standard builds.

Potential tariff impact on the US market

One potential challenge for Rolls-Royce’s growth plans, particularly in the US, which is the company’s largest market, is the threat of tariffs on international goods, particularly luxury goods.

“If you put a tariff on the price of a good, it’s going to have some impact on the demand, … and if it’s a luxury good, there could be higher price elasticity. That’s certainly what I’d expect at Rolls-Royce,” Brownridge said, implying that an increase in price would likely affect demand.

For example, a 10% tariff could raise Rolls-Royce prices by $50,000 or even $100,000 for cars that are customized and optioned in the $1 million range.

Even for Rolls-Royce’s ultra-high-net-worth clientele, such a significant added expense is not desirable.

Global reach provides resiliency

Despite the threat of tariffs, Brownridge remains largely optimistic.

“We’re not dependent on any one market, we have clients in every corner of the world, and that’s the way we run our business,” Brownridge stated.

“But notwithstanding that, the USA is a really important market for us and I think we’re in a great position irrespective of what happens with tariffs,” he added.

This highlights the company’s confidence in its diverse global client base and the enduring appeal of its brand.

The post Trump tariffs? No problem, says Rolls-Royce CEO appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Billionaire Frank McCourt’s Project Liberty offers to acquire TikTok’s US assets
next post
How many billions will California fires cost the US economy?

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Ethereum price is entering a sideways consolidation

    July 24, 2024
  • Senate unanimously passes bill bolstering presidential candidates’ Secret Service protection

    September 24, 2024
  • Trump admin to pause financial assistance programs: report

    January 28, 2025
  • Houston Rockets owner among trio of Trump ambassador nominees confirmed by Senate

    April 30, 2025
  • More than 230 doctors and health care professionals call on Trump to release medical records

    October 16, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • Europe market open: stocks inch up as trade war fears linger

    April 11, 2025
  • U.S. airlines cool hiring after adding 194,000 employees in post-Covid spree

    September 9, 2024
  • Former FBI and CIA chief urges senators to sink Patel, Gabbard

    December 27, 2024

Recent Posts

  • A 600% rally: How Bitcoin sent this healthcare stock soaring

    May 12, 2025
  • China’s 50 cents driverless taxi revolution sparks economic and safety debates

    July 19, 2024
  • Trump vows ‘new era of national success,’ says America’s ‘decline is over’ in inaugural address

    January 20, 2025

Editor’s Pick

  • Here’s the argument Trump hopes will net first major SCOTUS win in second term

    February 19, 2025
  • Syrian rights activist and cousin of Assad tears into Europe for supporting new ‘terrorist’ regime

    March 15, 2025
  • BofA upgrades Apollo Global stock after a dramatic 20% decline this month: Should you consider buying?

    August 6, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock