BMW is to take control of the Rolls-Royce Motor Cars brand name, despite losing a bidding battle for the car-maker to its arch-rival Volkswagen.
From 2003, Rolls-Royce cars will be known as Bentley Motor Cars, while BMW would establish a new Rolls-Royce Motor Cars, VW said.
Although VW beat BMW with a higher offer to win Rolls-Royce from its previous owner, the British defence engineering group Vickers, the brand name had always belonged to the aero-engine maker Rolls-Royce.
During BMW's takeover attempt of Rolls-Royce Motor Cars, the Rolls-Royce parent made clear that it preferred BMW with which it has an engine supply deal, but was unable to stop Vickers from selling the company to VW.
Yesterday, the Rolls-Royce parent said it would now receive GBP40 million (about HK$513.07 million) from BMW, for the rights to the name.
Under the terms of the deal, BMW will take control of the brand name from 2003, while VW will concentrate on development, production and distribution of the Bentley brand.