Rolls-Royce CEO Torsten Muller-Otvos is leaving his position after 14 years of service. He is the one who transformed the company from a dying brand into a status symbol sought by celebrities, well-off buyers, and other labels.
Muller-Otvos, Rolls-Royce's longest-serving CEO in over a century, will step down from his position on December 1. The announcement was made public by the automaker on Thursday, October 5. BMW UK's current CEO, Chris Brownridge, will take over for him.
Bringing New Life
By appealing to affluent consumers of a new age, Muller-Otvos revitalized the Rolls-Royce brand and propelled it to the forefront of the premium market. Rolls-Royce's sales increased from 1,000 cars sold in 2010 to over 6,000 last year, thanks in large part to the introduction of cutting-edge design schemes like the fast-back Wraith and Black Badge.
Over the last decade, the typical age of a new Rolls-Royce purchaser has dropped from 56 to 43.
"The brand is contemporary today, I would say cool again. That indicates to me that we got it right, not just me but the entire team. That makes me extremely proud as I look back and see what a fabulous, fabulous journey we had," Muller-Otvos said in an interview with CNBC.
Last year, Muller-Otvos introduced the world to the first totally electric Rolls, known as the Spectre. This marked the beginning of a new era for Rolls-Royce. Despite its high price tag of nearly $413,000, the two-door, 577-horsepower monster is already sold out in the US until 2025.
If the US economy begins to diminish, the great concern for Rolls moving ahead would be whether or not it could keep its cool factor and high sales. Even while demand and orders are still high, according to Muller-Otvos, the firm is always ready for a downturn since the US is its major market.
Muller-Otvos warned that the luxury sector will be hit hard by economic slowdowns. He said the business is still quite robust for them, but it is at a different level than it was immediately after the pandemic. Apparently, those numbers are back to what they are accustomed to seeing, but Muller-Otvos reassured that the company is still in a very good position.
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More Customers, Higher Profits
Since Claude Johnson, who united Charles Rolls and Henry Royce in 1904 and led Rolls-Royce until his retirement in 1926, Muller-Otvos has been the company's longest-serving CEO.
According to Muller-Otvos, Rolls-Royce was a prestigious but rapidly fading brand when he first joined the company. The four-door Phantom, which is the company's hallmark, was created so that chauffeurs could quietly transport the aging leisure elite.
To learn more about the rapid transformation of the rich, particularly in light of the increase in digital wealth, Muller-Otvos consulted private bankers all around the globe.
Eventually, Muller-Otvos brought in a new age of personalization that attracted larger profit margins and new clientele. Named "Bespoke," this service lets customers personalize their Rolls-Royce by selecting their own upholstery, paint, materials, and lighting options.
Since Muller-Otvos took control, the average selling price of a Rolls-Royce has risen to roughly €500,000 (about $520,000), in large part due to the personalization program.
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