We were sceptical about the idea of starting car production 300 km away from the traditional heart of motor manufacturing in the Midlands, and of the plan to sell 1,000 cars a year at a price well beyond previous Rolls-Royces. Not only that but the cars would use BMW components and technology imported from Germany. Kalbfell sought to reassure us: ‘We are going to make authentic Rolls-Royces here in England’, he said.

The establishment of a new factory was the final chapter in a most extraordinary series of events that followed the decision by the Vickers engineering group to sell Rolls-Royce and Bentley, two of the most famous names in the British motor industry.

BMW was the preferred bidder, having been associated with Rolls and Bentley for some years, but it was trumped by Volkswagen. The deal seemed to be done and then BMW countered by negotiating the rights to use the Rolls-Royce name with the aero engine company Rolls-Royce plc.

So Volkswagen inherited the elderly Crewe factory that had made Rolls-Royces and Bentleys but was denied the more prestigious brand. BMW, equipped with no more than the name, badge and the Rolls-Royce flying lady mascot, had to start again.

The new Rolls-Royce Phantom saloon emerged from the Goodwood factory on schedule in January 2003. It received a warm welcome, even if some commentators remarked that its upright, stately-home style was an exaggerated German idea of a grand British limousine.

For a while, it looked as if the new Rolls would not meet its parents’ expectations. The arrival of the similarly priced Maybach from Mercedes confused the top of the market. Bentley took a different path and found a new vein of buyers for cars about half the price of the Phantom.

But by last year, buoyed by the introduction of two more models, the Phantom Coupe and Drophead convertible, Rolls-Royce at Goodwood was operating at full capacity. In 2007, 1,010 cars were sold worldwide.

This year, while Bentley and other makers of super-luxury cars are seeing a downturn, Rolls-Royce sales are up more than 40 per cent.

Three months ago, Tom Purves took over as chief executive of Rolls-Royce Motor Cars. Purves has had a distinguished career with BMW, most recently as head of its North American operations, but has a special affinity for Rolls-Royce; he started there in 1960s and became UK sales director.

Speaking in his spacious, airy office overlooking the landscaped grounds of the Rolls-Royce factory – quite unlike any other car plant in the world – Purves reflected on the current economic situation: ‘We are not immune from it but we have a certain degree of insulation. Our customers are affected and we have seen some cancellations and deliveries being delayed. But we are well distributed in world markets and I am pragmatically optimistic about our year-end results.’

Goodwood’s production for 2008 will be close to 1,200 cars. That figure could double in a few years, as the factory was re-modelled over the summer to include a second assembly line for the new, smaller Rolls-Royce, code-named RR4.

Purves reckons he was lucky to return when the range is being broadened: ‘Rolls-Royce was always at its best when it offered two product lines – think of the Phantom and the 20HP in the economically difficult period of the 1920s or the Silver Wraith and Silver Dawn in the 1950s. It is beneficial for business; two different cars support one another.’

Compared with the Phantom, RR4 will be smaller and cheaper – but not much. It is known to be based on an extended version of the new BMW 7-series and will be available from 2010 with a UK price around £170,000.

Given their current situations, Rolls-Royce seems wise to stay away from Bentley Continental territory. In price, RR4 will match the Bentley Arnage, but will arrive just as the elderly and most expensive Bentley fades away. As Purves says, ‘Rolls-Royce prices start where Bentley stops’.

While he declines to give details of RR4, Purves positions it thus: ‘The new car is not insubstantial – it is sized between the Phantom and the Mercedes S-class – and has a lot of presence, as well as the quietness and refinement expected of a Rolls-Royce. But it is a less formal, more driver-orientated car than the Phantom. It will be more for owner-drivers than chauffeur drive. The American market – Rolls-Royce’s biggest – will be the key to its success.’

In time, RR4 – which is expected to be given a traditional Rolls-Royce name – will spawn coupe and convertible derivatives just like the Phantom.

Two model ranges and six variations – that seemed an impossible dream when surveying that building site in the Sussex countryside seven years ago. So far, BMW’s decision to keep Rolls-Royce at the very top of the car market – away from the vicissitudes of everyday financial affairs - has been vindicated.

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