Luxury carmaker Rolls-Royce has announced a £300 million investment to expand its Goodwood factory and global headquarters, in response to the growing demand for highly customized models. The move is aimed at increasing the production capacity for bespoke vehicles, as Rolls-Royce looks to cater to its super-wealthy clientele who seek one-of-a-kind luxury cars.

The expansion will provide additional space for the production of Rolls-Royce’s exclusive bespoke designs, a segment that has seen increased demand in recent years. These tailored vehicles can include features such as holographic paint, hand-stitched embroidery, and even one-off artworks, with some models including solid gold elements. For example, a tribute to the 1964 James Bond film Goldfinger featured intricate 18-carat gold accents.

Rolls-Royce CEO Chris Brownridge highlighted the importance of this investment, telling Radio 4’s Today Programme that the growing demand for customized cars, which come at higher prices, is driving the need for more space at its Goodwood site. He explained that while the bespoke commissions are profitable, they are also labor-intensive, requiring significant time and space.

Although the company has seen a decline in overall sales, with 5,712 cars sold in 2024 compared to a record 6,032 in 2023, the value of these sales has risen due to the focus on bespoke builds. Rolls-Royce’s vehicles, such as the Ghost saloon, which starts at £250,000, and the Cullinan SUV and Spectre electric models, which begin at around £340,000, appeal to a niche market where price is less of a concern.

As the UK moves toward phasing out petrol and diesel vehicles by 2030, Rolls-Royce faces the challenge of preparing for a future with electric cars. The company has yet to clarify whether it will continue selling combustion engine cars to international clients after the transition, although Brownridge emphasized that electric vehicles are the “right direction” for Rolls-Royce. A company spokesperson added that, under current plans, Rolls-Royce would still have the capacity to build combustion engine cars in 2030, if demand remains.

The Goodwood factory expansion also aligns with Rolls-Royce’s future shift to an all-electric vehicle lineup. The site, which currently employs over 2,500 people, will see additional job creation as the brand continues to grow its workforce to meet the demand for sophisticated customizations and electric vehicle production.

In addition to its focus on bespoke vehicles, Rolls-Royce’s expansion highlights its long-term business security. Brownridge reassured employees that their jobs remain secure as the company invests in both its future and the evolving luxury car market.

US President-elect Donald Trump has sparked controversy by suggesting that NATO’s European members should increase their defence spending to 5% of their gross domestic product (GDP), a proposal that is more than double the current target of 2%. The suggestion, made during a press conference at his Mar-a-Lago residence in Florida on Tuesday evening, has drawn sharp criticism from several German politicians.

Trump, who has repeatedly urged NATO countries to boost their defence spending, stated that NATO members were contributing too little to the alliance’s military efforts. “Europe is in for a tiny fraction of the money that we’re in,” Trump told reporters, emphasizing that NATO members “can all afford it” and should increase their defence budgets to 5%, rather than the 2% target currently set by NATO.

None of NATO’s 32 members are currently spending 5% of GDP on defence, with Poland leading at 4.12%, followed by Estonia at 3.43%, and the US at 3.38%, according to NATO data.

In response, Ralf Stegner, a member of Germany’s Social Democrat Party (SPD), described Trump’s comments as “delusional and absolutely insane.” He added, “We don’t need more weapons in the world, but fewer,” in a post on Facebook. Marcus Faber, the chairman of the defence committee in Germany’s parliament, also rejected the 5% target, suggesting instead that NATO members should agree on a new goal beyond the 2% benchmark, with 3% being a more reasonable target.

Free Democratic Party (FDP) politician Marie-Agnes Strack-Zimmerman took a similar stance, criticizing Trump’s approach as an attempt to push European NATO members into financial commitments that would primarily benefit US industry. “We are not at a bazaar here,” Strack-Zimmerman remarked, urging Trump to avoid inventing numbers out of thin air.

Trump’s latest call is not his first on this matter. During his previous presidency, he repeatedly threatened to pull the US out of NATO if European allies failed to increase their defence spending. Over the past few years, NATO’s European members have increased their defence budgets, largely due to the heightened security concerns following Russia’s invasion of Ukraine in 2022.

NATO has estimated that 23 of its 32 members, including 16 from the EU, will meet the 2% GDP spending target by 2024, a significant rise from just six countries in 2021. Germany is expected to meet the 2% target for the first time this year, following Chancellor Olaf Scholz’s 2022 commitment to overhaul the country’s military.

As NATO’s new leadership emphasizes the need for higher defence spending, German politicians continue to debate the ideal level of investment. Some, like Green party chancellor candidate Robert Habeck, are advocating for 3.5% in the coming years. However, Friedrich Merz, leader of the opposition Christian Democratic Union (CDU), believes the specific target is less important than ensuring adequate military readiness.

Mark Rutte, NATO’s new chief, has warned that the current 2% target is insufficient, urging European citizens to make sacrifices, including cuts to pensions and health systems, to ensure the alliance’s security needs are met.