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Even in a down economy, Rolls-Royce is on a roll

Limited Volume, Big Margins Spell Success
Bigger isn't always better, especially when it comes to selling super luxury. Rolls-Royce CEO Torsten Müller-Ötvös expects the British automaker to again post a record year, despite the economic troubles in Europe and weak growth in both the US and China.
"It is not all doom and gloom out there," Müller-Ötvös explains, noting that the declining sales in Europe and elsewhere have been offset by good performance for the marque in the Middle East, Japan, Singapore, Hong Kong and Russia.

Rolls-Royce might 'enter into fuel cells'

Rolls-Royce released its first series-produced EV, the Spectre, in 2022, and the brand plans to launch additional battery-powered models in the coming years. It's not closing the door to other powertrains, however, and it's notably open to experimenting with hydrogen fuel cells. "Why not? I would say so when the time is right for us, and when the technology is so much advanced, that it is definitely something we would pursue as Rolls-Royce. Why not? We might exit batteries, and we might enter into fuel cells," company boss Torsten Muller-Otvos told British magazine Autocar. He stopped short of revealing whether engineers are currently testing hydrogen fuel cell-powered prototypes. It's too early to tell whether Rolls-Royce would develop a hydrogen fuel cell on its own or whether it would source some of the drivetrain's parts from parent company BMW, which has dabbled in this technology for decades. BMW notably began building an X5-based, hydrogen-powered prototype called iX5 in 2023, and it plans to ultimately funnel the feedback it gathers by testing the model into a production car. Muller-Otvos has already ruled out building a car powered by a hydrogen-burning engine, however. "I think a hydrogen combustion engine is nothing I would in any way look into, because that was tested already years ago. This is not the most efficient way to use hydrogen. If hydrogen will be used in the future, then it's fuel cells. And fuel cells are nothing different from a battery. It is just how you get the energy," he told Autocar, referring to the hydrogen-burning 7 Series prototype tested by BMW in the 2000s. Rolls-Royce, like nearly every brand looking at hydrogen technology, warns that the infrastructure needs to improve before the fuel cell can merge into the mainstream. "You can't obviously have hydrogen charging at home, whereas [with EVs] you have one big advantage, and all of our clients have big garages. There is lots of space at home and there is lots of space in office buildings to install charging," the CEO said. As it stands, Rolls-Royce wants to sell only electric cars by the end of 2030, and it hasn't announced plans to launch a series-produced hydrogen-electric model. It's not unreasonable to assume that this outlook could change during the second half of the 2020s, however.

Watch the Rolls-Royce Phantom live reveal

Watch the live reveal of the all-new eighth-generation Rolls-Royce Phantom. For decades, the Phantom has defined what it means to be a luxury car. As with other Phantoms, look for metal, wood, and enough leather to support a small farming operation for years. Rolls-Royce Luxury Videos Sedan rolls-royce phantom