The original Rolls-Royce Limited had been nationalised in 1971 due to the financial collapse of the company, caused in part by the development of the RB211 jet engine.

The leading contender seemed to be BMW, who already supplied internal combustion engines and other components for Rolls-Royce and Bentley cars.

As part of the deal, Volkswagen Group acquired the historic Crewe factory, plus the rights to the "Spirit of Ecstasy" mascot and the shape of the radiator grille.

The aero-engine maker decided to license the Rolls-Royce name and logo to BMW and not to Volkswagen, largely because the aero-engine maker had recently shared joint business ventures with BMW.

From 1998 to 2002, BMW would continue to supply engines for the cars and would allow Volkswagen use of the Rolls-Royce name and logo.