22/04/2024
An example of what can go wrong when decisions are made on the basis of poor information is evident in the purchase of Rolls-Royce Motor Cars.
Volkswagen and BMW battled each other to purchase Rolls-Royce from Vickers PLC. And Volkswagen won the battle, paying $780 million for the luxury auto-making company. But after the purchase was finalized, the buyers made a shocking discovery. Volkswagen owned the company, but not the rights to the name Rolls-Royce, which is synonymous with luxury cars around the world. The license for the name, it turned out, belonged to another company: Rolls-Royce PLC, an aerospace company. Even worse, Rolls-Royce PLC had ties to BMW. Guess who received permission to use the name? BMW—not Volkswagen.