UK to remain home of Rolls-Royce after 'remarkable' sales

Rolls-Royce Motor Cars has promised to keep its roots in Britain after the German-owned company announced its second highest sales record in over a century.

The West Sussex-based firm - which is owned by auto giant BMW - sold 4,011 cars in more than 50 countries in 2016, up 6% on 2015.

The company saw a 26% sales spike in its UK home market, while sales in the US jumped 10%, China rose 23% and Japan soared 51%.

The figures affirm the brand's strength and resilience in a year of challenging market conditions for luxury goods, which have been dampened by economic and political uncertainties.

They come as rival Jaguar Land Rover - Britain's biggest carmaker - also reported a record year.

Rolls-Royce Motor Cars chief executive Torsten Muller-Otvos said: "This remarkable result emphatically affirms the global appeal of the very finest British luxury goods to the world's most discerning patrons."

He added: "We are deeply committed to a long term, sustainable, successful growth strategy and this result, amidst a backdrop of global uncertainty, affirms this approach. 2016 has proven the perfect year to sign off the successful first chapter of the renaissance of Rolls-Royce.

"Success for Rolls-Royce is success for Great Britain and we reaffirm our commitment to maintaining the home of Rolls-Royce in the UK."

The Brexit vote has raised questions as to whether foreign-owned firms will maintain manufacturing hubs in the UK, especially if the Government opts to leave the EU's single market, resulting in higher tariffs for exported goods.

Mr Muller-Otvos's comments follow reports that the chief executive wrote to workers in March, warning them that an exit from the EU would drive up costs and prices and could affect the company's "employment base".

However, Rolls-Royce says it is planning to extend its 30,000 square metre Technology and Logistics Centre in Bognor Regis - close to its manufacturing hub in Goodwood, West Sussex - in 2017 by nearly 10,000 square metres "to meet growing demand and in readiness for future models".

The company now employs 1,700 people, a near 500% increase on its 350-strong team in 2003.

Meanwhile Jaguar Land Rover, owned by India's Tata, said it sold 583,000 cars in 2016, up 20% on the year before.

The UK company admitted in November that its future in the country could be jeopardised by a "hard Brexit" with new tax and tariff barriers.