Chapter 544: The British Automotive Industry

In preparation for meeting Duke Carter Howard in the afternoon, Xia Yu returned home to change into formal attire and prepared some small gifts. Although not expensive, they were meant to show his appreciation.

Of course, besides the gifts, he also made sure not to forget anything important that had been meticulously prepared and packed it carefully into his bag.

Since the meeting was scheduled for three in the afternoon at Elena's home, Xia Yu instructed Elena to skip the office for the day.

At 2:50 PM, after ringing the doorbell at Elena's house, Xia Yu was greeted by Elena's radiant and pure smile when the door opened.

"Xia Yu, come in! You really didn't have to bring a gift!"

Elena warmly welcomed Xia Yu inside and took the gift from his hands.

As soon as he stepped inside, Xia Yu felt a scrutinizing gaze directed at him. Following his instincts, he turned and saw an older middle-aged man with a calm gaze observing him.

With his hair streaked with silver, a face like a chiseled sculpture, sharp brows, and an eagle-like nose, the man had wrinkles on his face but was undoubtedly very handsome in his younger years.

"This is my father, Carter Howard."

Elena introduced her father to Xia Yu in a soft voice and then turned to Carter Howard with a smile, saying, "Dad, this is my friend Xia Yu."

Only after Elena's introduction did Carter Howard drop his scrutinizing gaze. His demeanor softened, becoming as friendly as a neighbor, and he said warmly, "Mr. Xia, welcome!"

"Duke Howard, hello!"

Xia Yu, following British noble etiquette, gave a formal bow to show respect for Carter Howard's ducal status. Making a good first impression was crucial, so he aimed to make a favorable impression from the start.

Indeed, Xia Yu's impeccable manners surprised Carter Howard, who responded with an even warmer smile and returned the bow. He then invited Xia Yu to take a seat, with Elena watching curiously.

"Ding ding ding!"

"Is that Xia Yu and my master arriving?"

Henry, who knew Xia Yu would come in the afternoon, had been watching the downstairs activity intently and came running down from upstairs with a shout.

"Yes!"

"Henry, good afternoon!"

"Xia Yu, good afternoon!"

"And my master?"

After greeting, Henry's eyes darted around, searching for Li Wuming's figure. Not finding him, he looked at Xia Yu eagerly.

Seeing this, Carter Howard revealed a loving smile.

"He's outside waiting. You'll see him when you go out."

Xia Yu pointed to the door and told Henry.

"Dad, sister, I'm going to practice martial arts with my master now."

Henry, excited, dashed out after leaving a quick message.

"Be careful! Rest if you're tired!"

Carter Howard shouted affectionately at Henry's retreating figure, receiving a casual "Got it" in response. He couldn't help but smile and shake his head.

"Xia Yu, would you like tea or coffee?"

Elena blinked her pretty eyes and asked.

"Coffee, please! Thank you!"

Noting the coffee at Carter Howard's desk, Xia Yu opted for coffee, following the host's lead.

"You're welcome! Please wait a moment!"

Elena said as she opened a jar, took out a wooden spoon, and scooped some ground coffee into a glass cup, beginning to brew it.

At this moment, Carter Howard initiated the conversation.

"Mr. Xia, I want to thank you for saving my son Henry. If it weren't for you, my son might have been lost. Please accept this father's gratitude!"

Carter Howard spoke sincerely and stood up to bow to Xia Yu. Xia Yu quickly stood and stepped aside, making a gesture to assist, and said, "Duke Howard, there's no need for that. I believe anyone would have stepped up in such a situation. It's what any citizen would do."

"But if it were someone else, they might not have been able to save Henry safely. After all, not everyone has a skilled martial artist nearby."

Carter Howard joked as he sat back down with Xia Yu.

Xia Yu smiled and did not continue the conversation.

"Duke Howard, I also want to thank you for your help in successfully acquiring the Financial Times Group. You know, I was prepared for a protracted battle, but I was surprised at how easy it was to communicate with the Pearson Group. I was puzzled for a long time until I realized that you had intervened. I've been wanting to find an opportunity to thank you but had not succeeded. You've really been a great help!"

After expressing his thanks, Xia Yu also showed his gratitude for Carter Howard's previous assistance, aiming to build rapport.

Elena, who had just brewed the coffee, was surprised to learn that her father had helped Xia Yu with the acquisition of the Financial Times Group. She cast a curious glance at her father, receiving a warm smile in return.

"Xia Yu, here's your coffee. Be careful not to burn yourself."

"Thank you!"

"Mr. Xia, my son Henry can be quite mischievous. I really appreciate you taking care of him during this time."

"It's no trouble. I'm glad Henry likes martial arts. As long as he's willing to learn, I'll have my bodyguards teach him with all their effort."

Xia Yu's sincere words earned Carter Howard's friendly smile.

"Dad, I've seen Henry practicing martial arts. Although it's tough, his passion has allowed him to persevere. I was really surprised."

At this moment, Elena suddenly interjected.

"Really? That's wonderful! I'll have to see how he's learning later."

Carter Howard said with satisfaction, giving his smiling daughter a meaningful glance.

Every parent wishes for their child to succeed. Praising a child is often more effective than praising the parents. Therefore, Xia Yu appropriately praised Henry: "Henry is diligent and eager to learn. At such a young age, his perseverance is impressive. I believe he will become an outstanding person when he grows up."

Indeed, Carter Howard laughed heartily, his face filled with contentment.

After discussing Henry for a while and noticing his daughter's frequent glances at him, Carter Howard sighed inwardly and decided to bring up a new topic.

"Mr. Xia, I've heard you're acquiring Rolls-Royce Motor Cars. Can you tell me why you chose it?"

"If you want to enter the automotive industry, you could have chosen Aston Martin, Land Rover (known as Land Rover in the UK but registered as Rover in China), Lotus, Jaguar, or Riley (which changed its name to Rover Cars in 1991). Most of these companies are performing better than Rolls-Royce Motor Cars, and the acquisition would be less difficult."

Carter Howard spoke and gazed intently at Xia Yu.

Xia Yu, with a clear and confident smile, explained, "Entering the automotive industry is something I've thought deeply about. The British automotive industry has always been at the pinnacle of the world. I think any ambitious young person would want to enter this field."

"In fact, I already have a car company in Asia, but unfortunately, it partners with Honda. Honda's top technology is inferior to that of British automotive companies, and the technology provided for the partnership was second-rate. So I wasn't satisfied."

"This time coming to the UK, my dream has been rekindled."

"I understand that technology is the foundation of an automotive company. Since I'm venturing into the automotive industry, I chose Rolls-Royce Motor Cars for its cutting-edge technology. Although its performance has been poor in recent years, I believe there's a way to rejuvenate it after careful consideration!"

Realistically speaking, in this era, the British automotive industry is still quite strong, particularly in terms of technology, surpassing even Germany.

However, British conservatism, while creating the unparalleled status of British cars, also became the most direct reason for the decline of the British automotive industry.

When people think of foreign cars, they generally think of American cars, German cars, and Japanese cars, with British cars being left far behind.

Indeed, in later years, British automotive brands were almost entirely divided up.

Rolls-Royce first went to Volkswagen and then to BMW; Lotus was acquired by Malaysia's Proton; Jaguar, Land Rover, and Rover were first acquired by Ford and eventually by India's Tata Group; Aston Martin was also acquired by Ford.

It can be said that British cars were not defeated by German or Japanese cars but by their own conservative mindset. Ford's mass production of civilian cars outcompeted British luxury and gentleman cars, and then used the market to gain profits before swallowing British automotive companies.

After the acquisitions, Ford didn't nurture these subsidiaries, and they were eventually sold off, leaving the pride of British automotive industry in ruins.

Nevertheless, as long as the automotive factories remain in the UK, the foundation of British automotive industry still exists. Even in 2018, nineteen out of the top twenty global automotive parts manufacturers had production bases in the UK.

Proud and conservative British people, lacking in marketing acumen, ended up with high-quality cars but poor market presence.

Yet Xia Yu understood the essence of marketing. Once Rolls-Royce Motor Cars was in his hands, it would surely rise again.

Although Rolls-Royce and Bentley are both luxury brands with high prices and limited production—Rolls-Royce has always insisted on handmade production, with an annual capacity of about two thousand vehicles—it's unrealistic to capture the market with such a small output.

In the high-end car sector, a brand's reputation and technology are key, while the mid-to-low-end market is much larger, representing significant profit.

An ambitious automotive company aiming to become an international giant needs both high-end brands to

 refine technology and mid-to-low-end markets to generate revenue and fund technological research.

If Xia Yu acquired Rolls-Royce Motor Cars, he would continue to position Rolls-Royce as a high-end luxury brand but would push Bentley into the mid-to-high-end market. Bentley's established luxury car image would make a transition to mid-to-high-end models highly effective in sales.

Subsequently, acquiring a mid-to-low-end brand would target the mass market, forming the core of Xia Yu's automotive strategy.

But ultimately, the most important factors are high-end luxury brands and technology. In the entire British automotive industry, Rolls-Royce and Bentley are the best. If not acquiring them, who else?

Listening to Xia Yu's explanation, Carter Howard showed a skeptical expression, clearly doubtful that Xia Yu could revive Rolls-Royce Motor Cars. He found Xia Yu's confidence somewhat amusing.

"Mr. Xia, how can you be so sure that you can save Rolls-Royce Motor Cars?"

Carter Howard asked with a faint smile.

Xia Yu remained relaxed, his smile showing confidence.

He opened his bag and, under the curious gaze of Carter Howard and Elena, took out the prepared materials and handed them to Carter Howard.

"Duke Howard, this is the source of my confidence. You'll understand once you take a look."

Xia Yu said calmly, his tone filled with assurance.

Seeing the cover, Carter Howard's gaze deepened significantly. He glanced at Xia Yu and solemnly accepted the materials, starting to review them.