Rolls-Royce to expand Goodwood HQ as demand for bespoke cars grows

To meet the increasing demand for customized vehicles, luxury car manufacturer Rolls-Royce will expand its factory and global headquarters in Goodwood. The company will invest over £300 million to build more highly customized versions of its cars for ultra-wealthy clients.

Despite the UK's plans to phase out the sale of petrol and diesel cars by 2030, Rolls-Royce's executives have declined to say whether the company will stop selling internal combustion engine vehicles to overseas customers. Rolls-Royce sold 5,712 cars in 2024, down from a record 6,032 in 2023, but total sales revenue was higher due to the sale of more customized models. While these figures may seem insignificant compared to the millions of vehicles delivered annually by mainstream manufacturers, Rolls-Royce operates in a highly rarefied market.

The brand states "prices are not disclosed," but it is understood that its cheapest model, the Ghost sedan, starts at around £250,000. Its Cullinan sports utility vehicle and electric Spectre models are believed to start at around £340,000. As a luxury car manufacturer focused on export markets, Rolls-Royce is insulated from many of the challenges currently facing the European automotive industry. However, the company has been affected by a decline in demand in one of its most important markets, China. Earlier this year, Rolls-Royce's boss stated that the growing demand for personalized vehicles is helping to offset this downturn.

The 120-year-old British brand was fully taken over by German car manufacturer BMW in 2003, and officially opened its Goodwood factory in West Sussex the same year. Rolls-Royce has said that this expansion secures its future in the UK. For some customers, simply owning a Rolls-Royce is not unique enough. In recent years, the company has increasingly focused on creating highly customized versions of its cars, which can be sold at higher prices. Its competitors are doing the same. This includes cars with holographic paint, incorporating one-of-a-kind artwork, or featuring fine hand-made embroidery. One model designed as a tribute to the 1964 James Bond film "Goldfinger" included parts made of 18-carat solid gold.

Rolls-Royce CEO Chris Brownridge stated in an interview with BBC Radio 4's "Today" program that this is generating "more complex commissions" and "driving" the expansion at Goodwood to have more space. But building personalized, customized cars, while lucrative, is a labor-intensive process that requires time and space. At the same time, like other manufacturers, the company is preparing for a future where traditional cars are phased out and replaced by electric models. In the UK, the Labour government has pledged to phase out the sale of petrol and diesel cars by 2030 and is consulting with car manufacturers on how to implement this plan.

Mr. Brownridge declined to tell the BBC whether the company would continue to manufacture internal combustion engine cars for overseas customers after 2030, but he said the company has a "very clear roadmap" and that electric vehicles are "the right direction for Rolls-Royce." A Rolls-Royce spokesperson said that under current plans and legislation, Rolls-Royce will still be able to manufacture internal combustion engine cars in 2030 if customers require them. However, he said that five years "is a long time" and legislation could change, adding that the company may no longer be able to manufacture such cars by then. Rolls-Royce stated that the factory expansion will "create additional space" for building customized cars. It also added that the plan will also "prepare the manufacturing facilities for the brand's transition to an all-battery electric future."

The car manufacturer has already received planning permission for the expansion of the Goodwood factory, which was built in 2003 and initially accommodated 300 workers. Currently, the site employs more than 2,500 people, with another 7,500 in the UK supply chain. Brownridge said that the investment in Goodwood confirms that the company has a "very secure long-term business" and therefore these jobs are "very safe". He added: "Our business is likely to grow both in terms of these more complex commissions, and in terms of the numbers of people we need."

In the US, President-elect Donald Trump has threatened to impose higher tariffs on car imports. Brownridge stated that the US is "a very important market," but that Rolls-Royce's customers have a higher "price elasticity" than mass-market customers, and the company is not dependent on the US. Rolls-Royce announced the factory expansion on Wednesday, weeks after another famous British brand caused controversy while setting out its future plans. Jaguar – part of Jaguar Land Rover – is to be relaunched as an all-electric brand, and is significantly raising its market positioning as part of a major corporate restructuring. In December, the company unveiled a striking concept car, along with a new logo and a controversial online advert, which sparked a social media storm and generated a flurry of opinion pieces.