In 1973, the car business entity of Rolls-Royce Limited was demerged, creating Rolls-Royce Motors. The Rolls-Royce Limited company collapsed financially, causing it to be nationalized in 1971. The financial collapse was brought by the development of the cash-strapping RB211 jet engine. When Rolls-Royce Ltd. was nationalized, it prioritized the manufacturing of jet engines, leaving the car business to go on its separate, independent way. Vickers, another British auto company, acquired Rolls-Royce Motors, along with Bentley Motors. In 1998, Vickers decided to give up both Rolls-Royce and Bentley, with two German rivals BMW and Volkswagen in the front seat of interested buyers. BMW seemed to be the frontrunner, as it was already supplying engines to some of the Rolls-Royce and Bentley lines. However, VW outbid them by 90 million pounds. Still, the Rolls-Royce brand name and mascot still belonged to the parent Rolls-Royce Limited.
VW and BMW compromised that from 1998 to 2002, it would be business as usual, as BMW would continue to be the engine supplier while VW would use name and logo of Rolls-Royce. On 2003, only BMW would be responsible for “Rolls-Royce” cars, while VW would be responsible for the high-producing Bentley brand. The production of Rolls-Royce cars has been relocated from the Crewe factory, which only now produces Bentley cars, to its current plant in Goodwood, England.