In Hong Kong, we build a global business empire

At 2 p.m., the plane landed smoothly at Kai Tak International Airport.

He returned very quietly this time, so there was no grand welcoming ceremony at the airport.

Lin Haoran, holding his son and holding Guo Xiaohan's hand, walked down the gangway.

In mid-March, Hong Kong's air is warm and humid, carrying a hint of sea saltiness, a stark contrast to the dry and crisp feeling of Beijing.

He took a deep breath, and the familiar scent made him feel a little more relaxed.

The convoy sent by Cui Zilong was already waiting on one side of the tarmac.

"You should take Madam back to the villa on Shi Xun Road first!" Lin Haoran said to Li Weidong after glancing at Lin Yaoguang, who was still fast asleep.

“Yes, boss!” Li Weidong said respectfully.

Lin Haoran nodded, then turned to Guo Xiaohan and said, "Don't wait for me for dinner tonight. I might not be going back; I have some things to take care of."

"Okay, then Haoran, you go and handle it. I'll take my son home first." Guo Xiaohan nodded understandingly and didn't ask any further questions.

She took the still-sleeping Lin Yaoguang from Lin Haoran's arms. The little guy smacked his lips in his sleep, as if he was dreaming of something delicious, with a satisfied smile on his face.

Guo Xiaohan lowered her head and kissed her son's forehead, then smiled at Lin Haoran: "Then you should rest early after you finish your work, don't stay up too late."

"Okay, go ahead." Lin Haoran closed the car door for her and watched the Mercedes slowly drive away from the tarmac and disappear in the direction of the airport exit.

"Boss, are we going to the Kang Le Building?" Cui Zilong, dressed in a suit and tie, asked respectfully.

"Okay, let's go to the Kang Le Building. You can come with me," Lin Haoran said with a smile.

“Okay!” Cui Zilong opened the car door for Lin Haoran, and after his boss got in, he got in from the other side.

The car started and slowly drove away from Kai Tak International Airport.

"Any progress on the investigation into the acquisition of the car brand?" Lin Haoran asked.

“Boss, you asked me to investigate the acquisition target of an international car brand last night. I immediately mobilized all intelligence channels and launched an investigation. I have already compiled some information.” Cui Zilong said, just about to unzip his briefcase and take out a folder.

However, Lin Haoran stopped him.

"Let's talk about it when we get to the Kang Le Building!" Lin Haoran said.

"Good boss!"

Lin Haoran wasn't very familiar with the automotive industry in this world, but he did know which car brands still had a significant global influence in later generations.

Brands like Volkswagen, Toyota, Mercedes-Benz, BMW, Audi, Porsche, Honda, Hyundai, Ford, Nissan, Chevrolet, Renault, Peugeot, Bentley, Ferrari, etc.

These brands remain a mainstay in the global automotive market, and their brand value, technological accumulation, and market position have stood the test of time.

What he needs to do now is to select a brand that is currently in a slump but has great potential and acquire it at a reasonable price.

The goal is to become a well-known international car brand with a global fan base.

Speaking of which, he almost had the opportunity to acquire Toyota Motor Corporation before.

At that time, Lin Haoran was already the largest shareholder of Toyota Motor Corporation, holding more than 20% of the shares.

Although his initial goal was not to acquire Toyota Motor Corporation, but simply to make a profit, he did have a good chance.

However, due to the intervention of the Japanese government and Japanese conglomerates, such as the Minister of State of the Ministry of International Trade and Industry personally inquiring about Lin Haoran's investment intentions, stating that Toyota Motor is not only one of the pillars of Japan's economy, but also an important representative of the national automobile industry, and clearly stating that it cannot accept foreign control of a national brand, thus exerting direct pressure.

Furthermore, the founding family of Toyota Motor Corporation and top Japanese conglomerates are doing everything they can to prevent him from further increasing his stake.

Ultimately, he chose to sell his Toyota shares to the Mitsubishi Group for 6000 billion yen, making a huge profit of a staggering HK$68.1 billion.

He subsequently withdrew from Toyota's shareholder list.

Although he failed to defeat Toyota in that battle, it made him realize one thing: truly top international car brands are often backed by deep national and financial interests, and cannot be bought with money alone.

This is true for Japan, Germany, and even more so for the United States.

To acquire truly top-tier brands, one must not only face competition at the capital level, but also political obstacles.

Therefore, his goal this time was very clear: to avoid the top brands that the country regards as the "backbone of industry" and instead look for brands that were once glorious but are now in decline, yet still have a solid foundation.

These types of brands are not well-regarded by their home governments or conglomerates, making acquisitions relatively easier and more affordable.

The car stopped in the underground parking lot of the Kang Le Building.

Lin Haoran and Cui Zilong got out of the car and took the private elevator to their office on the 51st floor.

Upon seeing Lin Haoran, Liu Xiaoli immediately broke into a happy smile, but seeing Cui Zilong present, she refrained from making any intimate gestures.

"Boss, you're back!"

"Okay, Xiaoli, you can go out for a bit. I have something to discuss with President Cui!" Lin Haoran smiled slightly at her and said.

"it is good."

Before leaving, Liu Xiaoli prepared a cup of hot tea for each of them, then quietly left the office and closed the door.

"Alright, you can talk now." Lin Haoran looked at Cui Zilong and gestured for him to sit down.

Cui Zilong nodded, sat down in the chair opposite the desk, opened the folder, and handed it to Lin Haoran page by page. At the same time, he added verbally, "Boss, I have screened the brands based on five aspects: brand awareness, technological accumulation, operational difficulties, willingness to sell, and political risks. Overall, there are currently five brands that best meet your requirements."

"First, there's Rover, a subsidiary of the British Leyland Group. Founded in 1904, Rover is one of Britain's oldest car brands, with a rich technological heritage. Before World War II, it was the official car manufacturer for the British Royal Family. Currently, Rover's business is in dire straits, suffering losses year after year, and its parent company, the British Leyland Group, is seeking to divest some of its assets."

Rover's advantage lies in its relatively low price, with a valuation of approximately $500 million to $800 million, making acquisition less difficult. Its disadvantage is its aging brand image, which requires significant funds and effort to rebuild.

Furthermore, acquiring the Rover Group would require a package deal that includes the Austin, MG, and MINI brands.

"Secondly, Alfa Romeo, an Italian brand founded in 1910, is known for its sporty performance and design aesthetics, and has a large number of loyal fans around the world."

Alfa Romeo is currently also operating at a loss, and its parent company, Fiat Group, is considering restructuring, possibly including the sale of some brands.

Alfa Romeo is valued at approximately $400 million to $600 million. Its strengths lie in its unique brand image, excellent design, and superior handling; its weaknesses include relatively small production capacity, a relatively closed technology system, and greater integration challenges.

"Thirdly, Jaguar, owned by the British Leyland Group. Jaguar was founded in 1922 and is positioned in the high-end luxury market. It has a high brand recognition worldwide, especially in the North American and European markets."

Jaguar's valuation is high, around one billion US dollars. Its advantages lie in its strong brand premium and robust technological capabilities; its disadvantages are its high price and the fact that Jaguar and Land Rover are currently under the same parent company, meaning that acquiring Jaguar would likely require considering the ownership of Land Rover as well.

"Fourth, Porsche, this household name sports car brand suffered its first annual loss in 1980. The management once planned to discontinue the classic 911 model. It was only after the new CEO took office in 1981 that the decline was gradually reversed."

Currently, Porsche is in a period of recovery, and due to operational pressures, the Porsche-Piëch family, which controls the car brand, is highly likely to bring in substantial external capital.

"Fifth, Chrysler of the United States. Its advantage is its maximized scale. The company was on the verge of bankruptcy in 1979 and was saved by a $15 billion loan guaranteed by the U.S. government. In 1983, it turned a profit with the Model K and the first-generation Grand Voyager MPV. Its net profit for the year was only $2 million, and its market value was still at a historical low. Its shareholding was highly dispersed."

Chrysler's current market value is approximately $18-25 billion, and a full acquisition would be possible with $25-30 billion. If only the largest shareholder position is secured, controlling interest could be achieved for less than $10 billion.

As one of the Detroit Big Three, it boasts a mature dealer network across the United States, a complete product line of passenger cars and commercial vehicles, and a scale far exceeding that of Jaguar and Porsche, aligning with the positioning of a major international automotive brand.

"Companies like GM and Ford have high market capitalizations, generally in the tens of billions of dollars. Acquiring them would be too costly, and the influence of the American Chamber of Commerce is extremely strong, making foreign acquisitions face significant political obstacles."

Japanese brands such as Toyota and Honda are now in a period of rising profitability and have high valuations. Moreover, the complex cross-shareholding structure of Japanese companies makes it almost impossible for foreign capital to gain controlling stakes.

As for Ferrari, Fiat already held a 50% stake in it in 1969, and its founder, Enzo Ferrari, is still alive and will not sell his core control, making the acquisition extremely difficult.

Lin Haoran listened while flipping through the documents.

“Rover, Alfa Romeo, Jaguar, Land Rover, Porsche, Chrysler, MG, MINI…” He repeated the names of these car brands in a low voice.

"What about brands like Volkswagen, Mercedes-Benz, BMW, and Audi?" he asked, looking up at Cui Zilong.

"These brands have healthy fundamentals, and most importantly, they have extremely strong local equity and policy barriers, making it virtually impossible for foreign capital to obtain controlling stakes. Moreover, the cost-effectiveness of acquiring them is far lower than that of the brands mentioned above. Even if you, the boss, really want to choose one of these brands to acquire, you can afford it, but it is difficult to control and has limited potential for appreciation!"
If you, boss, are determined to develop a German brand, I suggest you don't seek control. Instead, acquire a stake and then, as a Hong Kong-based company, negotiate the exclusive distribution rights and joint venture production rights in the Yatai region. This way, you can reap the benefits of the distribution channels, which will have a much higher return on investment than simply acquiring equity!

Clearly, Cui Zilong had made ample preparations from last night until this morning.

After listening to Cui Zilong's analysis, Lin Haoran couldn't help but ponder.

Today, major international car brands are mainly concentrated in Europe, the United States, and Japan. As for Hong Kong and Southeast Asia, there are no car brands that can compete with them.

Hong Kong is an international financial center and a trade hub, but manufacturing, especially heavy industry, has never been its strength. As a result, it has never developed a complete independent automobile industry and does not even have a single car brand.

As for Southeast Asia, although the countries have a certain industrial base, the entire Southeast Asian automotive industry is currently in the early stages of the transfer of Japanese and European and American industries. It is positioned as a low-cost assembly market, with almost no local brands. Even if there are some local car brands, they are just small brands that are not well recognized in the local market.

This means that if Lin Haoran wants to enter the automotive industry, he can only target regions with mature automotive industrial systems, such as Europe, the United States, and Japan.

Considering the political obstacles and the difficulty of acquisition, European brands that are struggling but still have a strong heritage are undoubtedly the most realistic choice.

As for Japan and the United States, they can basically be ruled out.

Although the collected data suggests that Chrysler has a significant acquisition opportunity.

However, he could basically rule out anything that was targeted at the United States.

Chrysler is also considered one of the symbols of the American auto industry and is one of the Big Three automakers in Detroit.

Even if such companies are in trouble, the US government and labor unions will never stand idly by and allow foreign capital to acquire them.

When Chrysler was on the verge of bankruptcy in 1979, the U.S. government made an exception and provided a $15 billion guaranteed loan. This in itself illustrates that the U.S. government could save it, but it would never allow it to fall into the hands of foreigners.

Lin Haoran recalled his previous experience with Toyota, which made him even more certain.

If Japan is like this, the United States will only be even worse.

The United States has a stronger and more direct awareness of protecting its core domestic industries than Japan.

Although Chrysler seems to have a great chance, the US government could intervene at any time under the pretext of "national security" or "industrial protection" when it comes to actually making the acquisition, and might even block the deal through congressional legislation.

Companies like the automotive industry, which provide a large number of jobs, are completely different from MGM, which he just acquired.

Rather than getting thwarted later, it's better to set your sights on Europe from the start.

Just then, there was a knock on the door.

"Please come in."

The one who came in was Ma Shimin.

"Boss, I heard you were here downstairs, so I came up to see you," Ma Shimin said with a smile.

"Perfect timing, come over and give me some advice. Mr. Cui and I were discussing the acquisition of a car brand." Lin Haoran smiled and waved, gesturing for Ma Shimin to come and sit on the sofa.

Ma Shimin was clearly somewhat surprised, but he didn't ask any further questions. He simply nodded, sat down on the chair next to him, and looked at Lin Haoran, waiting for him to continue.

Lin Haoran briefly recounted Cui Zilong's research report, handed him the documents in his hand, and then looked at Ma Shimin, asking, "If I wanted to select one or two car brands from these to acquire or gain a controlling stake, which ones would be the best choices?" (End of Chapter)