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Rolls-Royce reported its third highest annual total sales ever in 2024, with over 5,000 units as demand remains stable. The company also announcing an over $300 million investment to expand its UK plant, focused on bespoke cars. So what does this signal about the outlook for the luxury consumer? We have Chris Brownridge, who is the CEO of Rolls-Royce Motor Cars and our very own Pras Subramanian. Chris, great to have you back on our air with us. First and foremost, after a year that you've just experienced in 2024, how much more difficult does it become to top that in 2025? And what type of demand profile are you continuing to see among the ultra luxury consumers who pick a Rolls-Royce?

Well, good morning, gentlemen, and thank you for having me on your show. Um 2024 was a really successful year for Rolls-Royce. Another great success um in terms of the level of demand we saw from every region of the world. Uh but more importantly, what we saw was a real increase in demand for our bespoke motor cars. So we saw a real increase in the level of requests coming from our clients for motor cars with uh features which are very specific and personal to that particular client. And that's coming off the back of our network of private offices. And of course, I think last time we spoke, uh we'd just opened our private office in New York. Looking ahead into 2025, I think the conditions we're in will be quite similar. So we we expect to have a very strong year uh and we'll navigate uh the headwinds but also take advantage of the opportunities. And we're certainly seeing plenty of those in Rolls-Royce at the moment.

With that in mind, I mean, there are a lot of new crypto millionaires out of there out of this world this year, of course, over the past year and of course, recently to start 2025 getting back above a hundred thousand um per Bitcoin. I I wonder with this many new millionaires minted that have been talking about when Lambo for years, that's been something tossed around within the crypto landscape. You know, what what is the new net worth requirement to qualify for that invite only Rolls-Royce customer experience? Now that you have so many who are sitting on crypto and and could be interested in getting a Rolls-Royce.

Well, one of the really special aspects of Rolls-Royce is the way that we have direct contact with all of our clients, and we know them very well individually. So, of course, we know that the clients are most likely to want to get involved in the different product offers that we have, including coach build. Uh and so that won't change in 2025. It's a really important part of our business, not just what we make and the remarkable artistry and craft in our motor cars, but also the client experience. Our clients tell us that the luxury is actually engaging with us and being part of Rolls-Royce, as well as having their wonderful masterpiece in their motor car.

Hey Chris, Pras here. Good to see you again. So, you know, Rolls-Royce has a select type of clientele. They're paying upwards of a a decent amount of money for their cars. We also see that the new Trump administration threatening tariffs on luxury automobiles. Now, I don't see how that really affects you guys so much, but what do you think that might have if on the overall luxury automobile sector in general?

Well Pras, good to see you. And what I can talk about is Rolls-Royce and my understanding of our business. And I guess it's basic economics. If you put a tariff on the price of a good, it's going to have some impact on the demand. But I guess also, it depends on the segment. And if it's a luxury good, there could be higher price elasticity. That's certainly what I'd expect of Rolls-Royce. But notwithstanding that, our job is to make sure that we're compelling for our clients in the experience and the product offer that we we have. Uh so I'm still very optimistic about the USA and the market, and that's why we're continuing to invest here. It's a really important market for us. But let's not forget that Rolls-Royce, a wonderful mark with 120 years of heritage, you know, we're known across the world. And of course, 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. That gives us that stability. 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.

You know, speaking of your product portfolio and regions, one of the big uh uh releases you guys had recently was the Spectre EV. Uh what can you tell us about that car in terms of sales, both in the US and elsewhere? And also, are clients asking about hybrids as well?

Right. So let's talk about Spectre first. So Spectre is our super luxury coupe that we launched right at the end of 2023. So last year, in 24, it's the first year of a full year of deliveries to our clients. And so it's been very insightful for us. The first and most obvious fact is it's the second most demanded Rolls-Royce in 2024. So that's, you know, very clear sign that there's a real fascination for this wonderful motor car. But what we've learned from our clients and their experience of Spectre is that living with it, they find that it's a Rolls-Royce that really amplifies the characteristics they expect of a Rolls-Royce. So the silence, the waftability, the ease of driving, that wonderful magic carpet ride. When you have a very well-engineered electric drive train with a Rolls-Royce, it really takes it to a higher level. And for me, getting that feedback's been so motivating because it informs me that as we use electrification in more Rolls-Royces, we're going to make better motor cars. So that's that's a very clear and positive sign for us. So Spectre's been a great success for us. And I'm I'm very encouraged about the future and our roadmap of electrification.

Chris, with regard to that and I I suppose the entire business as well, the the luxury market is more known for sensing what demand is coming forward from its clients and then integrating technology as a response to that. As you think about the the future that we're quickly moving towards it seems, is there a future where you see delivering an autonomous Rolls-Royce?

Well, um at Rolls-Royce, um our clients tell us very clearly what they love about their motor cars is that they are an oasis of calm. So when you drive a Rolls-Royce, it's always an extraordinary experience, and what they don't want to be is overfaced with complicated technology. But let's let's also not beat around the bush. Our cars have all of the technology that they need. We have level two driver uh driver assistance already within Spectre, and we'll continue to offer innovations. But in terms of autonomous driving and perhaps I'll take perhaps a little bit of a a light note, I would say that we've had autonomous driving in Rolls-Royces for many years because of course, many of our clients, particularly with Phantom and extended wheelbase ghosts, they have drivers already.

Chris, thanks so much for taking the time here with us today. Chris Brownridge, plus we've got Yahoo Finance's own Pras Subramanian. Great to see you here.

Great to see you too. Thank you. Bye bye.

Thanks.