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The luxury brand of BMW is Rolls-Royce. BMW Group has owned Rolls-Royce Motor Cars since 2003, making it the crown jewel of the German automaker’s portfolio.[1] While BMW itself is classified as a premium brand, Rolls-Royce operates in the ultra-luxury segment with vehicles starting around $358,000 and reaching well over $1 million.[2]
Understanding BMW Group’s Brand Hierarchy
Many drivers confuse BMW’s corporate structure with its brand positioning. The BMW Group—headquartered in Munich, Germany—isn’t just one brand. It’s a portfolio of four distinct marques: BMW, MINI, Rolls-Royce, and BMW Motorrad.[3]
Here’s where things get interesting. BMW positions itself as a “premium” brand focused on driving dynamics and performance. The tagline “Sheer Driving Pleasure” captures this philosophy perfectly.[4] Rolls-Royce, on the other hand, targets an entirely different customer—one who values exclusivity, handcrafted luxury, and prestige above all else.
The distinction matters. Premium means higher quality than standard, better features, and an elevated driving experience. Luxury means exceptional experiences, top-tier materials, superior craftsmanship, and an overall sense of prestige that sets buyers apart from everyone else.[5] Think of it this way: a BMW 7 Series costs around $100,000 while a Rolls-Royce Phantom starts at $517,750.[6]
How BMW Acquired Rolls-Royce
The story behind BMW’s ownership of Rolls-Royce reads like a corporate thriller. In 1998, Vickers plc put both Rolls-Royce and Bentley up for sale. Volkswagen Group won the initial auction, paying £479 million—but there was a catch.[7]
VW got the factory, the workforce, and the Bentley brand. But BMW had already secured something more valuable: the rights to the Rolls-Royce name and logo through a prior agreement with Rolls-Royce plc, the aerospace company that held the trademark.[7] Without the name, VW couldn’t build Rolls-Royces.
After a transition period that saw BMW supplying engines to Rolls-Royce vehicles built at the old Crewe factory, BMW assumed full control on January 1, 2003.[1] The German automaker invested £350 million to build a completely new manufacturing facility at Goodwood, England—a 42-acre campus designed specifically for ultra-luxury production.[7]
And here’s what BMW didn’t buy: the aerospace division. Rolls-Royce Holdings, which makes jet engines and industrial power systems, remains a separate company entirely.[8] When someone asks “does BMW own Rolls-Royce,” the answer is yes—but only the car company.
The Rolls-Royce Lineup Today
Rolls-Royce currently produces four models at Goodwood, each representing the pinnacle of automotive luxury. Approximately 20 cars roll off the line daily, with over 1,700 craftspeople employed at the facility.[9]
| Model | Starting Price | Body Style | Notable Feature |
|---|---|---|---|
| Phantom | $517,750 | Sedan | Flagship model, Starlight headliner |
| Cullinan | $392,000 | SUV | First-ever Rolls-Royce SUV |
| Ghost | $370,000 | Sedan | “Entry-level” luxury |
| Spectre | $423,000 | Coupe | First all-electric Rolls-Royce |
Source: Car and Driver, Supercars.net[2][10]
The Phantom Extended can easily exceed $1 million with bespoke options. The limited Scintilla Private edition? That’s a flat $1 million before you even start customizing.[10] Rolls-Royce encourages personalization—this isn’t a brand where buyers select from a preset options list. Want your family crest embroidered into the headrests? Done. A starlight headliner with 1,600 hand-placed fiber optic lights mimicking your birth constellation? Standard practice.
The cost difference between BMW and competitors is one thing. Rolls-Royce operates in a different atmosphere entirely.
Premium vs. Luxury: What’s the Real Difference?
The premium-versus-luxury debate comes up constantly when discussing BMW and Rolls-Royce. These aren’t interchangeable terms.
BMW focuses on driving pleasure. Its vehicles deliver performance, handling, and driver engagement across the lineup.[4] Even a BMW 3 Series emphasizes the experience behind the wheel. The brand targets buyers who want something better than mainstream options but still prioritize practicality and value.
Rolls-Royce targets a different mindset entirely. These buyers aren’t cross-shopping with Mercedes or Audi. They’re deciding between a Rolls-Royce and a vacation home.[11] Luxury at this level means paying more without necessarily getting more practical features. A Ferrari has two seats and worse fuel economy than a BMW, but costs five times as much.[12] That’s the luxury paradox.
The interior quality in Rolls-Royce vehicles takes handcraftsmanship to an extreme. Wood veneers are matched grain-for-grain. Leather comes from cattle raised in specific climates to avoid insect bites that would mar the hide. Each car takes weeks to complete rather than hours.[9] BMW makes excellent interiors too—check out the 2025 BMW X3 or 5 Series for proof—but they’re designed for scale production. Rolls-Royce isn’t.
What BMW Ownership Has Done for Rolls-Royce
Some purists worried that German ownership would dilute Rolls-Royce’s British heritage. Twenty-plus years later, the opposite happened.
BMW’s engineering resources and financial backing allowed Rolls-Royce to innovate while preserving tradition.[13] The brand now has access to BMW’s technology platforms without sacrificing its bespoke manufacturing processes. The Spectre, for instance, uses electric drivetrain technology developed across the BMW Group but maintains the hand-finished luxury experience customers expect.
Sales have grown substantially under BMW stewardship. The brand expanded into new segments—the Cullinan SUV would never have existed under the pre-BMW era—and established a stronger global presence.[13] Far from diluting the brand, BMW reinforced Rolls-Royce as the world’s premier luxury carmaker.
And crucially, Rolls-Royce cars are still built in England. The Goodwood plant honors the brand’s heritage while using modern manufacturing where appropriate. It’s a balance that satisfies both traditionalists and those who expect cutting-edge technology in their $500,000 vehicle.
Where Do BMW’s Higher-End Models Fit?
BMW doesn’t stop at mid-range premiums. The brand pushes into near-luxury territory with several models that blur the line between premium and luxury.
The BMW 7 Series and i7 sit at the top of the sedan range, offering opulence that rivals some luxury competitors. The X3 M and M lineup deliver performance that justifies premium-plus pricing. These vehicles compete directly with Mercedes S-Class and Audi A8 models.
But even BMW’s flagships don’t compete with Rolls-Royce. The 7 Series starts around $100,000. The cheapest Rolls-Royce starts at $358,000.[2] That’s not a gap—it’s a canyon.
The brand structure makes strategic sense. BMW captures the performance-oriented premium buyer. MINI targets the compact premium segment. Rolls-Royce owns ultra-luxury. Each brand serves a distinct customer without cannibalizing the others. For deeper comparisons, see our BMW vs Mercedes reliability analysis and Audi Q5 vs BMW X3 comparison.
Key Takeaways
- Rolls-Royce is BMW Group’s dedicated luxury brand, owned since 2003 following a complex acquisition that saw BMW secure trademark rights while Volkswagen initially won the auction.[7]
- BMW is classified as a premium brand focused on driving pleasure, while Rolls-Royce operates in the ultra-luxury segment with vehicles starting around $358,000 and reaching over $1 million.[2]
- All Rolls-Royce vehicles are hand-built at the Goodwood plant in England, where approximately 20 cars are produced daily by over 1,700 craftspeople.[9]
- The current Rolls-Royce lineup includes four models: Phantom (flagship sedan), Cullinan (SUV), Ghost (“entry” luxury sedan), and Spectre (electric coupe).[10]
- BMW Group’s brand hierarchy—BMW, MINI, Rolls-Royce, and BMW Motorrad—allows each marque to serve distinct market segments without competing against each other.[3]
FAQs
Does BMW actually manufacture Rolls-Royce vehicles?
BMW Group owns Rolls-Royce Motor Cars, but the vehicles are manufactured at Goodwood in West Sussex, England—not at BMW factories in Germany.[9] Rolls-Royce maintains its own design, engineering, and production teams. BMW provides financial backing, technology sharing, and corporate resources, but the cars remain distinctly British in production and character.
Is Rolls-Royce the same company that makes airplane engines?
No. Rolls-Royce Motor Cars (owned by BMW) and Rolls-Royce Holdings (the aerospace company) are completely separate entities.[8] They share the same heritage and name, but the companies split decades ago. When you buy a Rolls-Royce car, BMW profits. When an airline buys a Rolls-Royce jet engine, BMW has no involvement.
Why is Rolls-Royce so much more expensive than BMW?
Rolls-Royce vehicles are hand-built by skilled craftspeople over weeks, not mass-produced in hours.[9] Materials are sourced to extreme standards—leather without blemishes, wood matched grain-to-grain, paint applied in dozens of layers. The bespoke customization options mean nearly every car is unique. You’re paying for exclusivity, craftsmanship, and status rather than transportation.
What is BMW’s most luxurious vehicle?
Within the BMW brand itself, the 7 Series and i7 represent the pinnacle of luxury.[5] But if we’re talking about the entire BMW Group portfolio, Rolls-Royce Phantom Extended is the ultimate expression of luxury, with prices exceeding $1 million for bespoke configurations.
References
- BMW Group. (n.d.). Brands & Business Segments. https://www.bmwgroup.com/en/company/brands-products.html
- Car and Driver. (2026). Rolls-Royce Cars and SUVs: Reviews, Pricing, and Specs. https://www.caranddriver.com/rolls-royce
- BMW Group. (n.d.). The BMW Group. https://www.bmw.in/en/topics/Fascination-BMW/the-corporation-original/the-bmw-group.html
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Brandstruck. (2024). The positioning of the three most valuable automotive brands.
The positioning of the three most valuable automotive brands in the world
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Xclusive Automotive Group. (2025). Is BMW Premium Or Luxury?
Is BMW Premium Or Luxury?
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Braman Rolls-Royce Palm Beach. (2025). Rolls-Royce Price Guide.
Rolls-Royce Price Guide: What You Get for the Price of a Phantom in 2025
- CarInterior. (2025). Who Owns Rolls-Royce Motor Cars? https://carinterior.alibaba.com/question/who-owns-rolls-royce-car-company
- Premier Auto Miami. (2025). Does BMW Own Rolls Royce? https://www.premierautomiami.com/does-bmw-own-rolls-royce/
- Wikipedia. (n.d.). Goodwood plant. https://en.wikipedia.org/wiki/Goodwood_plant
- Supercars.net. (2024). Rolls-Royce Current Lineup. https://www.supercars.net/blog/all-brands/rolls-royce/rolls-royce-current-models/
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The Luxury Reporter. (2023). Premium VS Luxury: All You Need To Know.
Premium VS Luxury: All You Need To Know
- LinkedIn. (2024). 5 Differences between Luxury and Premium. https://www.linkedin.com/pulse/5-differences-between-luxury-premium-tunji-bada-btjde
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BMW Insights. (n.d.). The Impact Of BMW’s Ownership On Rolls-Royce.
The Impact of BMW’s Ownership on Rolls-Royce
I am a senior automotive analyst at Autvex. Expert vehicle evaluations, in-depth reviews, and objective analysis helping readers make informed automotive decisions with years of industry experience.
