Rolls-Royce CEO reveals the major shift that could set it on the path for success in the future

 

  • Rolls-Royce Motors Cars has experienced a tremendous amount of change since CEO Torsten Müller-Ötvös arrived in 2010.
  • According to the CEO, one of the most profound changes has been a shift towards younger customers.
  • Since 2010, the average Rolls-Royce buyer has become 23% younger. 
  • Müller-Ötvös attributes this change to the launch of products such as the Wraith coupe and the Dawn convertible in recent years.
  • He also expects the new Cullinan SUV to bring more female clients to the brand. 

Rolls-Royce Motors Cars has seen a tremendous amount of change in the nine years since the arrival of CEO Torsten Müller-Ötvös.

(Rolls-Royce Motor Cars is a subsidiary of BMW Group and is not affiliated with Rolls-Royce Holdings plc, which is an aviation engine maker and defense contractor.)

The iconic British marque has grown to includes models such as the Wraith coupe in 2013 and the Dawn convertible in 2015. Last year, the company also welcomed its first SUV in the form of the new Cullinan

The addition of these new models along with improvement made to existing offerings has resulted in a sales renaissance for Rolls-Royce. Global sales surpassed 4,000 for the first time in company history 2014 while 2018  saw the Rolls deliver 4,107 cars, the most in the brand's 115-year history.

According to the veteran auto executive, not only has the company's new offerings boosted sales, but it has also changed the make-up of its customer base.

Since 2010, the average age of Rolls-Royce clientele is down 23% from 56 years of age to 43, Müller-Ötvös told Business Insider in a recent interview. 

The German attributes this change to the arrival of products such as the Wraith, the Dawn, and the stylish Black Badge series of cars. 

It's a change has broadened the brand's appeal and put it on course for sustained success in the future. 

Rolls-Royce's target customers are not only getting younger and younger, but they are also expected to increasingly be women.

According to Müller-Ötvös, only 15% of current Rolls-Royce clients are female. However, the introduction of the Cullinan SUV is expected to boost that figure in the coming years, he told us. 

According to the company's longtime CEO, the order backlog of the Cullinan has reached the third quarter of 2019 and will be the brand's best selling model.

However, a younger customer doesn't mean one that is any less exacting, Müller-Ötvös told us. They are still very affluent, discerning, and "won't take no for an answer," he said. 

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