The chassis offered some up to date innovations. Notable was the use of half elliptic springs for both axles. In the case of the rear axle these were underslung which, used in conjunction with a lower frame, created a considerable reduction in height to the order of some 9 inches.
Engine, clutch and gearbox were combined into one unit and instead of a sub frame being employed the engine was bolted directly to the chassis.
To shorten the delay between order and delivery of a Phantom II, a subframe was provided which was mounted on rubber. This allowed erection of the coachwork separately on the subframe during the time that the chassis and engine were still in the course of production or testing.
The engine's power potential was stretched almost to the limit. In spite of this a direct comparison of competitors showed a considerable amount of difference in performance.
Rolls-Royce had deliberately cultivated the image of elegance and supreme quality for their motor cars and the characteristics thought most desirable were not top speed and acceleration, but perfect driving manners and reliable operation. These characteristics had achieved for them a safe position in the home and export markets amongst purchasers who shared these values. Inevitably sales were lost to the competition when a prospective purchaser felt that high performance was of paramount importance, and by progressively increasing the output of their engines, Rolls-Royce were tacitly admitting the problem.
In comparison with the Silver Ghost and even the Phantom I, the loaded engine was no longer wholly inaudible. Some sound could be detected although at a very low level and through frequencies transmitted to the chassis.
An innovation in the Phantom II was the use of a synchromesh gearbox for the first time, a change that didn't however cause any difficulties.
The closing of the US subsidiary at Springfield wasn't followed by the entire loss of the American market. Making best use of the experience which had been gained in the USA, two series of left hand drive Phantom IIs were produced. Beside several modifications to fit the chassis for American conditions these motor cars were fitted with central gear change and handbrake levers.
Rolls-Royce's desire to remain in the USA even after the closing of the factory there is highlighted by the endurance tests run at Chateauroux. During production of the Phantom II from 1929 until 1935 a total of eleven experimental cars were tested with extreme care in France. Of these only two were left hand drive.
The initiative for the development of a special model, the Phantom II Continental, was taken by Royce who was fascinated by the sports saloon bodies which had begun to appear on other chassis. Although considerably shorter than other bodies they offered four doors and seated four to five passengers. the rear seat was not above, but in front of, the rear axel. This didn't offer as much space as usual but without the division found on limousines rear seat passengers found more than enough foot room.
After detailed inspection of one car of this new generation a Riley Nine Monaco, Royce submitted a plan to create a Phantom II of a special sporting lay-out to be fitted with a sports saloon body. The sales department frankly disapproved of this idea. This didn't discourage Royce, of course.
Following a detailed sketch from Evernden striking coachwork was built by Barker. The bodywork's attractiveness was enhanced by paintwork in light blue with mother of pearl effect. Royce inspected the car and send Evernden on a demonstration run to France and Spain. At a Concours d'Elegance in fashionable Biarritz the Rolls-Royce Phantom II was placed first, thus generating much interest in the style. More interest followed after the car had caused a sensation in Madrid. At this stage customers began approaching the London sales office. When Everneden returned to England he was surprised to discover that the coleagues from the sales office who had been so reserved in the beginning had already arranged for a brochure to be produced and had christened the model the Phantom II Continental.