Rolls-Royce races to catch up to demand for Cullinan

The Rolls-Royce Cullinan SUV took years to reach the market. It was teased in 2013, confirmed in 2015 and finally shown publicly last May.

But now that it's on sale, the vehicle's impact on the British ultraluxury brand has been significant.

The Cullinan's arrival in showrooms late last year quickly translated into an order bank that's full through July, and the vehicle continues to bring in orders, said Martin Fritsches, CEO of Rolls-Royce Motor Cars Americas.

Cullinan demand has pushed Rolls-Royce to capacity at its lone production plant in Goodwood, England.

"I would like to have a little bit more supply," Fritsches told Automotive News. "And I don't get it because we are running on 100 percent of production capacity, increasing the production capacity throughout the weeks and months, but still not being able to catch up to demand."

To boost production, Rolls-Royce added 200 employees to its plant last year, increasing its head count to 2,000.

Like many ultraluxury brands, Rolls-Royce refers to its beefier four-wheel-drive offering as an SUV, a term the U.S. industry reserves for utility vehicles built on truck frames. Fritsches says his customers are nonetheless attracted to the more rugged concept. Half of Cullinan customers are new to the brand, he says. And within the Cullinan's customer base, Rolls-Royce is getting more female buyers and younger buyers overall.

He said existing Rolls-Royce customers see the SUV as a natural addition to their collection. "Many customers that already drive a Dawn or a Phantom buy a second Rolls-Royce," Fritsches said. "But this time it's an SUV."

The automaker sold 4,107 vehicles globally in 2018, a record sales year for the company.

Fritsches, 41, stepped into his role in September after Pedro Mota's departure to Porsche. Fritsches had joined Rolls-Royce in 2018 as vice president of sales for the Americas region.

The German-Argentine executive has been with BMW since 1999 and has held several positions in sales, marketing and dealer development across the group's other brands.

While 2019 marks the first year since 2012 that Rolls-Royce will not launch a new or redesigned product, the Cullinan arrived just after the redesigned Phantom flagship sedan in 2017, capping an influx of fresh products for its dealers.

The updated lineup has motivated many of Rolls-Royce's 44 dealerships in the Americas region to invest.

"Most of them, they are doing refurbishment and increasing workshop capacity," Fritsches said, noting that around half of the brand's dealers invested in renovations or new stores in the past 12 to 18 months. "The dealers are really heavily investing."

Nine dealerships will open new showrooms this year, including those in Palm Beach and Fort Lauderdale, Florida., Atlanta and Chicago. Last year in Canada, three of the four Rolls-Royce dealers opened new buildings.

And as important as the Cullinan is for attracting new U.S. customers, it's even more relevant in Canada, where the colder climate is ideal for the vehicle.

"It is also a 4x4 that will really make the difference in that country," Fritsches said.

Last year, Rolls-Royce sold around 100 vehicles in Canada. He expects the Cullinan to lift that number to around 150 this year.