In October 1997, Vickers announced that it had decided to sell Rolls-Royce Motors. BMW AG seemed to be a logical purchaser because BMW already supplied engines and other components for Bentley and Rolls-Royce branded cars and because of BMW and Vickers joint efforts in building aircraft engines. BMW made a final offer of £340m, but was outbid by Volkswagen AG, which offered £430m. Volkswagen AG acquired the vehicle designs, model nameplates, production and administrative facilities, the Spirit of Ecstasy and Rolls-Royce grille shape trademarks, but not the rights to the use of the Rolls-Royce name or logo, which are owned by Rolls-Royce Holdings plc. In 1998, BMW started supplying components for the new range of Rolls-Royce and Bentley cars—notably V8 engines for the Bentley Arnage and V12 engines for the Rolls-Royce Silver Seraph, however, the supply contract allowed BMW to terminate its supply deal with Rolls-Royce with 12 months' notice, which would not be enough time for Volkswagen to re-engineer the cars.
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