In Hong Kong, we build a global business empire

Chapter 1035: Volkswagen and BMW have nothing to do with this anymore.

"Mr. Lin is very familiar with Rolls-Royce?" a gentle voice came from the side.

Lin Haoran turned his head and saw an elderly gentleman in a dark suit with gray hair smiling at him.

The old gentleman was tall and elegant, clearly an old-school manager who had been immersed in British industry for decades.

"This is Sir David Plasto, CEO of Rolls-Royce," Minister Lawrence introduced from the side.

"Sir David, I have long admired your name."

Lin Haoran extended his hand and said with a smile, "I wouldn't say we're familiar with each other, but I am a Rolls-Royce owner. I have a customized Rolls-Royce Phantom Extended Wheelbase at home, which I love very much. In addition, my hotels have nearly 30 Rolls-Royces used for hospitality."

That's the truth; Lin Haoran wasn't bragging.

The Peninsula Hotel alone established a fleet of Rolls-Royce VIP cars as early as the 70s, and now it has as many as 15 cars.

Including the Mandarin Oriental Hotel, MGM Grand Hotel, and Raffles Hotel Singapore, which all have Rolls-Royce VIP fleets, the total number is indeed 30.

Although he didn't buy most of these cars, they were already included in the hotel's assets when the hotel was acquired.

Regardless, these cars are all Rolls-Royces, and each one is a custom-made version, belonging to Lin Haoran's assets.

It's fair to say that you can't find many clients like Lin Haoran anywhere in the world.

Sir David Plasto became even more enthusiastic upon hearing this.

The person in front of us is not only a well-known super-rich man, but also a major Rolls-Royce customer.

For a brand like Rolls-Royce, the best customer relationships are never built through business negotiations, but rather maintained through brand recognition and shared tastes.

A Rolls-Royce owner who truly appreciates the craftsmanship and details of a car is more valuable than a hundred buyers who are simply wealthy.

“It is a great honor for me that Mr. Lin is our valued client,” Sir Plasto said with a smile.

Lin Haoran continued, "I recognize this brand and the craftsmanship behind it. In my eyes, Rolls-Royce is not just a car brand, but a standard for pursuing ultimate quality."

My own business has always been pursuing the same thing.

Bao Yugang chimed in at this point: "Speaking of which, I'm also a Rolls-Royce owner. I have a Phantom parked in my garage in Hong Kong. Although it's not as fancy as Haoran's Phantom Extended Wheelbase, I've been driving it for several years now. Once you've driven a Rolls-Royce, you can never go back."

Sir Plasto's smile grew even warmer upon hearing this: "Sir Pao is also a long-time customer of ours. What a coincidence! It is truly a rare occasion for us to have two distinguished Rolls-Royce customers visiting at the same time today."

In fact, Hong Kong is definitely one of Rolls-Royce's most important markets in the world.

The city has an extremely high density of wealthy people and is home to many top-tier hotels, giving it a natural affinity for brands like Rolls-Royce that symbolize status and taste.

Not only Lin Haoran and Bao Yugang usually drive Rolls-Royces, but also Mr. Huo, Mr. He, Shao Yifu, Liu Luanxiong and others drive Rolls-Royces.

It's fair to say that almost everyone in Hong Kong's elite circles owns a Rolls-Royce.

This level of concentration is rare in any city in the world.

As the CEO of Rolls-Royce, Sir Plasto naturally had a thorough understanding of the dynamics of the Hong Kong market. He knew that the two people in front of him were not only Rolls-Royce customers, but also some of the most influential figures in the Hong Kong business community.

“Alright, Mr. Lin, Sir Plasto, Sir Bao, let’s go inside and talk.” Minister Lawrence smiled and gestured for them to enter. “Chatting at the door is not the way Rolls-Royce treats its guests.”

Rolls-Royce is not a state-owned enterprise; it is now owned by Vickers Group, a long-established British defense contractor.

Therefore, the relationship between Minister Lawrence and Rolls-Royce was not one of superior and subordinate.

“Yes, yes, yes, Minister Lawrence, it was indeed my oversight.” Sir Plasto smiled and stepped aside to lead the way. “Please come with me, gentlemen. I have already had tea and refreshments prepared in the reception room. Let’s sit down and have a good chat.”

Furthermore, upon learning that Minister Laurence, Sir John Bower, and Mr. Lin were visiting Rolls-Royce headquarters, Sir Peter Matthews, Chairman of the Vickers Group, was already on his way and hoped to personally receive the three.

Minister Lawrence nodded and smiled, “Then I’ll have to trouble Sir Matthews to make the trip himself. It’s been a while since I’ve seen him, so this is a good opportunity to talk about the future direction of British industry.”

In fact, given that Minister Lawrence is the head of the British business community, it is not surprising that the chairman of Vickers Group personally came to greet him.

If it weren't for the fact that Minister Lawrence's visit with Lin Haoran and Bao Yugang was decided on short notice, leaving the other party with no time to prepare in advance, given the Vickers Group's high regard for Minister Lawrence, they would probably have already arranged a grand reception ceremony.

The group entered the Rolls-Royce factory complex, whose interior style was completely different from that of Land Rover, Austin, and other car factories.

Although the park has a complete production line, many of its processes are completed by hand.

In the Rolls-Royce factory, you can hardly see any large automated equipment in the stamping workshop, welding workshop, painting workshop, and other common processes found in modern automobile factories.

Instead, there are independent, sun-drenched workshops where carpenters quietly polish the panels, leather craftsmen carefully sew the seats, and assembly craftsmen patiently assemble every screw.

"Rolls-Royce's production philosophy is handcrafted, not machine-made."

Sir Plasto explained, “We believe that a machine can produce precise parts, but only human hands can create a work with a soul. Every Rolls-Royce embodies the months of hard work and skill of dozens of craftsmen.”

“This production method must be very inefficient, right?” Bao Yugang asked.

“Inefficiency is indeed not high,” Sir Plasto frankly admitted. “But what we pursue is never efficiency, but perfection. In the entire vehicle manufacturing process, manual labor accounts for about 60% of the time, and in the final vehicle assembly stage, more than 90% is done by hand.”

Our clients are willing to wait because they know that waiting is for the best results.

Lin Haoran stood behind an old craftsman who was polishing a wood grain panel and watched quietly for a long time.

The old man, wearing reading glasses, held a piece of extremely fine sandpaper in his hand, repeatedly polishing a small piece of walnut wood veneer. Each movement was extremely gentle, as if he were caressing a precious piece of porcelain.

It must be said that the high price is indeed justified.

After visiting the Rolls-Royce workshop, the group went to the Bentley production workshop.

Today, Bentley is not an independently operated company, but rather a subsidiary brand of Rolls-Royce, positioned as a sportier version of Rolls-Royce, with its products even manufactured on the same production line as Rolls-Royce.

Although Bentley has now begun its revival, it is not large in scale and is therefore a brand that is not highly valued.

After inspecting the park for nearly an hour, Minister Lawrence received a phone call midway through, saying that he had an urgent matter to attend to, and then hurriedly left.

A dozen minutes after Minister Lawrence left, Sir Peter Matthews, the chairman of Vickers Group, finally arrived.

Sir Peter Matthews was in his forties and in the prime of his life.

"Mr. Lin, Sir Bao, it is truly an honor for our Vickers Group to have you visit Rolls-Royce." Although he knew that Minister Lawrence had already left, Sir Peter Matthews did not show any negligence. On the contrary, he stepped forward with even greater enthusiasm and shook hands with Lin Haoran and Bao Yugang one by one.

“Sir Peter, you’re too kind,” Bao Yugang said with a smile. “We only decided to visit on a whim, and we didn’t expect to have troubled you to come all the way from London.”

“Sir, you flatter me. Rolls-Royce and Bentley are the jewels of British industry. It is my honor to host two leaders of Hong Kong’s business community,” Sir Matthews said, leading the two to a meeting room. Staff members served them hot tea and snacks.

In Britain, drinking tea is a perfectly normal way of entertaining guests. In fact, you could say that tea is served when you're not discussing serious matters, and even more so when you are discussing serious matters.

However, they mainly drink black tea, and they like to add milk and sugar to it, which is slightly different from the Hong Kong people's habit of drinking plain tea or milk tea with a little sugar.

Although Lin Haoran wasn't used to this way of drinking English black tea, he decided to follow local customs and, since he was on someone else's turf, he wouldn't be picky.

Sir Matthews picked up his teacup, took a sip, put it down, and glanced back and forth between Lin Haoran and Bao Yugang before speaking unhurriedly: "Mr. Lin, Sir Bao, I heard that you are in talks to acquire Austin and Land Rover?"

"Yes, progress is going relatively smoothly," Bao Yugang said. "We expect to sign a formal agreement soon."

Sir Matthews nodded: "Austin and Land Rover are both good brands, but unfortunately they have been dragged down by the Leyland Group for too long. If new capital and strategies come in, their potential should not be underestimated."

He paused for a moment, then turned his gaze to Lin Haoran: "What I'm more curious about is Mr. Lin's opinion on Rolls-Royce and Bentley?"

Lin Haoran picked up his teacup, took a sip, and slowly put it down: "Rolls-Royce is the jewel in the crown, while Bentley is the gem next to that jewel."

The two brands have slightly different positioning: Rolls-Royce pursues ultimate luxury and comfort, while Bentley leans towards sportiness and driving pleasure.

Owning both brands would create an almost unshakeable lineup of top-tier luxury cars.

Sir Matthews nodded thoughtfully: "Mr. Lin's vision is indeed unique. Although Bentley is currently defined as a sporty version of Rolls-Royce, its brand potential is far more than that."

If managed properly, Bentley could very well become a top-tier luxury brand independent of Rolls-Royce.

"However, I understand that Rolls-Royce is not a core business within the Vickers Group. It has a very low strategic priority and receives far less resource allocation and attention than the main military business. As a result, it has been greatly constrained in terms of product iteration, technology research and development, and brand marketing."

A top-tier luxury brand will eventually lose its luster if it doesn't receive sufficient resources in the long run.

Lin Haoran put down his teacup, his tone calm but hitting the nail on the head: "The reason why Rolls-Royce can still maintain its brand status is because of the reputation and historical heritage accumulated by generations of craftsmen, not because of how much support the Vickers Group has given it."

Sir Matthews remained silent for a moment after hearing this.

As the head of a military industrial enterprise, he was well aware that what Lin Haoran said was true.

Vickers Group’s main businesses are warships, submarines, military engines and engineering equipment, and Rolls-Royce Motor Cars is indeed marginalized within the group.

The majority of the group's annual R&D budget is invested in the military industry, with very little money allocated to Rolls-Royce.

Sir Matthews nodded frankly: "Mr. Lin is right. Vickers Group's core competitiveness lies in the military and engineering fields. Although Rolls-Royce has a very high brand value, it cannot create much value for the group."

Therefore, the group's internal resource allocation does indeed tend to favor business units that can generate stable government orders.

“I really like the Rolls-Royce brand. I wonder if the Vickers Group would be willing to part with this gem and let me manage it? You name your price,” Lin Haoran suddenly said.

His words immediately silenced everyone present.

Even Bao Yugang looked at Lin Haoran in surprise. When he came, he hadn't heard Lin Haoran mention wanting to acquire Rolls-Royce.

Lin Haoran paused for a moment, then continued, "I know this request is a bit presumptuous, but I believe Rolls-Royce needs sufficient financial investment to truly shine."

If I were to acquire Rolls-Royce, I would invest heavily in research and development, product iteration, and global market expansion, while retaining the existing team of artisans and respecting and continuing the brand's century-old tradition of craftsmanship.

Lin Haoran actually knew that the possibility of acquiring Rolls-Royce in 1983 was not very high. Even if Vickers Group did not value Rolls-Royce, Rolls-Royce was still profitable at that time.

Since it is profitable, Vickers Group has no reason to rush to sell it.

Moreover, a brand like Rolls-Royce is not only a commercial asset, but also a symbol of British industry. Even if Vickers Group wanted to sell, the British government would probably not let it go easily.

After all, no one wants to be branded as someone who "betrays national treasures".

But the reason Lin Haoran dared to speak up today was precisely because he knew in his heart that just because he couldn't buy it now didn't mean he wouldn't be able to buy it in the future.

What he needed to do was to plant a seed in the minds of Vickers Group and the British government in advance, letting Sir Matthews know that there was a buyer from Hong Kong with a genuine interest in Rolls-Royce and Bentley and sufficient financial strength.

This seed will sprout when Vickers Group adjusts its strategy in the future, or when the British government softens its stance.

After all, Rolls-Royce will eventually be put on the shelf for sale by Vickers Group.

“Mr. Lin, your request is indeed a bit sudden. Price is not the most important issue. Rolls-Royce and Bentley are within the Vickers Group. Although they are not a high strategic priority, they are, after all, symbols of British industry.”

Even within the Vickers Group, discussions about a sale require consideration of many factors, including the government's attitude, the media's reaction, the voice of the labor unions, and even public sentiment.

Therefore, this deal is probably impossible to complete.

Sir Matthews didn't consider Rolls-Royce to be unsellable, but he was well aware that given the current political climate and public opinion, if Vickers were to rashly sell Rolls-Royce to a non-British buyer, it would inevitably cause huge controversy.

"Then what if Sir John Paul Reed takes over the acquisition?" Lin Haoran asked with a smile, using Bao Yugang as a shield. "Sir John Paul Reed is a British knight, and he has a very high reputation in both British political and business circles."

If the acquisition were made in the name of Sir John Bowe, it would not be interpreted as foreign capital buying up a British national treasure, but rather as a British entrepreneur taking over British industrial heritage.

This would result in a much more moderate stance from the government, the media, and the labor unions.

Upon hearing this, Sir Matthews involuntarily turned his gaze to Bao Yugang, a thoughtful expression on his face.

As for Bao Yugang, he was taken aback for a moment, then smiled and did not deny it. He simply picked up his teacup, took a sip, and put it down. He then said in a calm tone, "Sir Matthews, Mr. Lin's meaning is my meaning."

"Even with Sir John Paulson's involvement, we never considered selling Rolls-Royce. After all, this was all too sudden. We only acquired Rolls-Royce in 1980, which is less than three years ago."

However, we welcome financing and equity investment in Rolls-Royce. Even if Mr. Lin invests himself, there will be no outside discussion, and the Vickers Group board of directors will easily approve it.

"Actually, we originally had this plan as well, intending to raise about 20% of the shares through external financing and invest the funds raised in Rolls-Royce's research and development and product iteration. The board of directors has already approved this plan, but we haven't found a suitable financing institution yet," Sir Matthews suddenly laughed.

Upon hearing this, Lin Haoran smiled.

I must say, this was a truly unexpected surprise.

Although it is not possible to acquire Rolls-Royce at present, if a stake could be acquired, it would be a strategic move to pave the way for a future full acquisition.

Moreover, after acquiring a stake, one can join the board of directors, gain access to Rolls-Royce's operating data and strategic plans, and understand its financial situation, product portfolio, and market strategies. This information is crucial for formulating future acquisition plans and integration strategies.

It's fair to say that if he can successfully become a Rolls-Royce shareholder ahead of schedule, then Volkswagen and BMW will have no future in the Rolls-Royce business. (End of Chapter)