Volkswagen Paid $790 Million for Rolls-Royce... So Why Does BMW Own It?

In 1998, Volkswagen spent £430 million to acquire Rolls-Royce Motors, gaining the factory and the Bentley brand, but critically failed to secure the rights to the "Rolls-Royce" name itself. Capitalizing on this legal oversight, rival BMW bypassed Volkswagen and purchased the trademark rights for just £40 million directly from the aero-engine company that owned them. Using their position as the primary engine supplier, BMW then forced Volkswagen into a temporary four-year licensing agreement. Finally, in 2003, the split became permanent with BMW taking full control of Rolls-Royce, while the BMW executive who engineered the entire coup ironically ended up becoming the CEO of the Volkswagen Group.