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North East hears from Rolls Royce boss

Light is at the end of the tunnel amid hope that America will kick-start the world economy in the coming months, the boss of an iconic luxury car maker has told North East entrepreneurs.

The new chief executive of Rolls Royce, Tom Purves, spent nine years heading BMW’s US division before taking over Rolls Royce last year.

Speaking in Durham at the first Entrepreneurs’ Forum event of 2009, Mr Purves said: “Americans have a deep tradition of progress and wealth creation and, as a nation, they remain positive and eager to regain the momentum of growth.

“They have been recessional now for 18 months and I am convinced very soon they will find ways to grow again. President Obama will be the catalyst for this change with his can do attitude.

“So I think we will see light at the end of the tunnel in the US this year which will then spread to Asia Pacific and Europe.”

He told delegates that luxury goods were the last to feel the impact of global recession but the collapse of Lehman Brothers last September was a watershed for Rolls Royce.

“Since then our order books have been about half of what we would have expected them to be,” he explained. “We have had some cancellations and postponements of orders; not because customers haven’t got the money, but more that they feel buying such an expensive car when they might be making people redundant is inappropriate.”

He had high praise for the work of the Entrepreneurs’ Forum and its former chairman and co-founder Sir Peter Vardy, who he has known and worked with for 25 years.

He added: “This country was built on entrepreneurship and will be again.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .