Chapter 653: Three Trumps

At Xia Yu's order, the Bright Fund and the Milky Way Fund, which were secretly controlled by the UK, began to take action to short-sell Sotheby's Auction House and Eskenazi Limited.

Sotheby's Auction House is the leader of the top ten auction houses, narrowly surpassing Christie's Auction House.

Of the top ten auction houses, only two are currently listed: Sotheby's, the number one auction house, and Christie's, the number two.

The former was listed on the London Stock Exchange in 1971. It can be recalled that in order to develop the American market, it was privatised in 1986 and listed on the New York Stock Exchange in 1988.

The latter was listed on the London Stock Exchange in 1973.

In the 1950s and 1960s, Sotheby's annual turnover was only just over 6 million British pounds. However, the financial annual report disclosed in 1978 showed that the total transaction volume in 1978 reached 230 million pounds, annual revenue had reached 72 million pounds, and annual net profit reached 25 million pounds.

Today, Sotheby's auction house has a market value of £299 million and a price-earnings ratio of 11.68 times.

Xia Yu still remembers that by 1980, Sotheby's auction house had become the world's first auction house to exceed £100 million in revenue.

The world's number one position was held until 2012, when it was overtaken by Christie's due to various problems.

XIA Yu's other target, Eskenazi Limited, was listed on the London Stock Exchange last year and now has a market value of around £78 million.

Fortunately, both companies are listed, so XIA Yu can deal with them better, otherwise there would be no way to get a handle on them.

Sotheby's global summer auction is scheduled for 10 August, and will be held not only in London, but also in New York, Tokyo, Hong Kong, Paris and other places on the same day.

There are generally two ways to obtain the qualification to participate in the auction house. One is for Sotheby's to directly issue an invitation to invite wealthy people to participate. For a big shot like Xia Yu, there is no doubt that he has received an invitation.

The other channel is to be able to prove one's strength, such as providing sellers with a certain level of value, or buyers who have verified their assets, and they will receive an invitation.

Xia Yu can go to Sotheby's Hong Kong auction and the London auction. Just as Elena called him a few days ago to tell him that Rolls-Royce Motor Cars had already designed two prototype cars for the new models based on the drawings.

In order to better grasp the actions of the two companies, Xia Yu once again came to the UK.

At the Rolls-Royce Motor Cars factory, Xia Yu, accompanied by Li Qian and a smartly dressed Elena, went to the car design laboratory, which had been set aside, under the guidance of the general manager, Rudolf Brucke.

The first thing they saw was the new Rolls-Royce, the new Phantom. The Phantom series classic model, which was originally not due to be released for another ten years, had been brought forward by Xia Yu.

'The exterior of this car is so beautiful! And it's still luxurious and grand! It feels better than any car we've bought before.'

Women undoubtedly like beautiful things, and they always like to look at the exterior first. When she saw the shiny black car in front of her, Li Qian, who was holding Xia Yu's hand, her eyes lit up, and she exclaimed in admiration.

Elena's eyes were full of admiration: 'Although I've seen it a few times, I'm still amazed when I see it again, and it gives me an excellent visual impact and enjoyment.'

'If this car goes on sale, I believe that not many aristocrats will be able to refuse it.'

Irina is the daughter of a duke, and her opinion undoubtedly represents a certain extent of the younger aristocratic class.

Rudolph Bruck's face was full of a smile, and his gaze at the car was full of fascination and longing, as if he could see the world shocked and following after its release.

People who appreciate cars don't necessarily build them, but people who build cars definitely know how to appreciate them.

Perhaps due to their abilities or inspiration, car designers may not be able to design a classic car, but after all the designers at Rolls-Royce Motor Cars created this car based on the design drawings, they all agreed that this car is one of the two most perfect cars of this era.

As for the other one of the two most perfect cars, of course it is Bentley's new model.

Xia Yu walked up to it, caressed the cool, smooth body, opened the door and looked at the exquisite workmanship inside, a satisfied smile appeared on his face.

Regardless of the matching and adjustment of the car's parts, just in terms of appearance, this car is absolutely stunning.

Perhaps in his opinion, who has experienced countless classic models of later generations, this car is just so-so, but in this era, it is definitely a standout.

You have to know that this Rolls-Royce Phantom, even ten years after the endless stream of classic models, is still able to stand out and be unique, let alone now.

'Rudolf, when can this car be put into mass production?'

After looking at it, Xia Yu asked the key question:

'Rudolf, when can this car be put into mass production?' Rudolf Bruck said confidently, 'Chairman, this is the initial version, which is already roadworthy, but the design team believes there is room for improvement. The company initially plans to launch this car on January 1, 1980.'

It is now August 1979, and there are still more than three months until January 1, 1980. Considering that it will also be put into mass production, the time is actually very tight.

If the car was to be launched as scheduled, the development and production cycle for this Rolls-Royce Phantom would be only about half a year, which is very short compared to the development cycle of some cars, which can be as long as two or three years.

However, Xia Yu is not surprised. If he had given Rolls-Royce Motor Cars a hard time, he would have lost face, just as if he had followed the normal procedure.

The development process of a car, the exterior design in fact takes a lot of time, and this problem was directly solved by Xia Yu.

As for the procedures for matching and adjusting the hardware, it depends on the actual situation.

Rolls-Royce Motor Cars, as a luxury car manufacturer, has a top-notch automotive laboratory with an amazing technical reserve, and much of this technology can be used directly.

This advantage of experience is something that ordinary car companies and new companies cannot make up for, and it is also one of the main reasons Xia Yu acquired Rolls-Royce Motor Cars.

After all, when it comes to building a car, technology is fundamental.

But if a car is to sell like hot cakes, the model is a powerful booster.

After all, in this world, there are only a minority of people who know about cars and are technically minded, and people who are attracted to beautiful things have always dominated the world.

This is true for most industries!

Xia Yu instructed Rudolf Bruck, 'The general production line must be expanded, and the production staff, especially the handicraft technicians, must be fully staffed. Try not to let production capacity become a constraint on sales.'

Although Rolls-Royce Motor Cars has always claimed to be handcrafted, this is not actually the case.

The term 'handmade' only refers to the delicate assembly of sheet metal parts such as the body, interior trim, and some components.

As for mechanical parts such as wheels, axles, engines, gearboxes, electronic circuits, suspension systems, steering systems, braking systems, and electrical wiring, they are all produced mechanically or chemically.

This is not meant to deceive consumers, and many consumers are aware of and understand this.

This is the case for the entire industry. It is not impossible for any part to be hand-made, but even if it is, it would definitely only be a prototype in the laboratory, or a car custom-made by a wealthy person at an extremely high price. It is absolutely impossible for a mass-produced car to face the market!

Rudolf Bruck solemnly assured him, 'Chairman, don't worry, I will definitely not make this mistake. We are already setting up two new production lines.'

After looking at this Rolls-Royce Phantom, Xia Yu crossed most of the factory again and walked to another design lab, where a new model of Bentley was on display. However, this model was not one that would be owned by a later generation of Bentleys.

If a later-generation automotive professional saw it, they would definitely recognise it as the classic Lexus LS400 from the 1980s.

This island car can be called the most classic car of the 1980s. This car from the Toyota group marked the successful transformation of the island car manufacturer after entering the European and American markets for twenty years. It no longer revolved around cheap products, but directly faced Europe's top luxury car brands and became an instant hit.

This car was not only popular in Europe, but also in the United States. In the first year after the Lexus LS400 was released, the annual sales of this single model in the United States exceeded the overall sales of any luxury car brand in the United States, including BMW and Mercedes-Benz.

Now this model has a brand new name – the Bentley Continental.

Yes, Xia Yu was too lazy to think of a name and simply used the name of a Bentley model that didn't appear until the 21st century.

No one would know anyway, so it was settled.

This Continental model will be the model that transforms Bentley, because its price will no longer be that of a top luxury car, but rather it will be priced at the BMW level.

A top luxury car brand with a mid-to-high price point will undoubtedly lower Bentley's class. Some old Bentley employees in the company are unwilling to accept this, but they were suppressed directly. Xia Yu has decided on Bentley's transformation since the beginning of the acquisition, and no one can stop it.

The economic foundation determines the superstructure. Without a sufficient market, those stubborn pride will only end up being laughable. Xia Yu knows very well how the top luxury cars in the UK fell collectively in the past life!

He believes that the launch of this car will definitely shock the whole of Britain, and that many Bentley fans will be dissatisfied, after all, it has lowered the brand's image.

But Xia Yu doesn't care about this pain, because he knows that more people will be attracted to Bentley, and overall it will definitely be a big profit.

For most people, Bentley was once unaffordable, but now they can buy one for the price of a BMW. What choice will most people make?

Xia Yu was mentally prepared for this Bentley Continental to become an instant hit.

'Rudolf, has the construction of the factory and production line for this car already begun?'

Facing Xia Yu's inquiry, Rudolf Bruck decisively replied that it had already begun, but after saying that, he hesitated for a moment and said with some concern, 'Chairman, do we really have to construct a production line with an annual output of 200,000 vehicles from the very beginning? Will it be too big?'

Xia Yu knew that Rudolf Bruck was worried, so he gave a faint smile and said, 'It won't be too big. At first, I even planned to initially build a production line with an annual output of 300,000 vehicles. Are there many people in the company who are also worried about this?'

Rudolf Bruck nodded and said, 'Yes, everyone is very satisfied with this model and believes that it will sell well, but there are still some concerns about building a production line with an annual output of 200,000 vehicles at once. After all, before this, Bentley's annual output was only 5,000 vehicles.'

Xia Yu laughed heartily, 'Rudolf, you can tell everyone not to worry about the company going under. Our company is a private company with only me and the Duke of Howard as shareholders. We can bear this risk. Your duty is to do your best to build the company. Understand?'

Rudolf Brucker was silent for a moment, then shrugged with a wry smile, 'Chairman, I think I understand!'

Since the boss had made it clear that he was not afraid of losses and was willing to take the risk, what else could these employees say?

Just work hard!

'One more thing, before the Bentley Continental is launched, offline sales outlets must be set up, built in strict accordance with 4S standards. As a luxury car, Bentley must give customers an ultimate after-sales service experience.'

Xia Yu thought about it for a while, and before leaving, once again reminded Rudolf Brucker.

The 4S standard for automobiles was also one of Xia Yu's trump cards for Rolls-Royce Motor Cars.

In those days, the 4S standard for automobiles had not yet been introduced. As soon as Rolls-Royce Motor Cars introduced it, it caused a huge sensation and had an impact on the entire industry.

This automobile franchise business model with 'four in one' as its core includes the sale of complete vehicles (Sale), spare parts (Sparepart), after-sales service (Service), and information feedback (Survey).

In later generations, due to the various deceptive performances of the 4S stores on the mainland, they were affectionately called '4 Sons Stores' by the general public.

However, it is undeniable that although 4S stores are very deceptive, they have also undergone changes in the market. When they first appeared, they were of great help to both customers and car companies.

When the 4S standard for cars has not yet been tested in the market, car dealers will definitely wait and see. Therefore, in order to formulate the best standard, Xia Yu asked Rolls-Royce Motor Cars to take personal action, which also earned a profit in car retail.

Once the 4S standard for automobiles becomes a trend, they can take the opportunity to license or join in, and use this momentum to expand the sales network of Rolls-Royce automobiles in a fission-like manner, which will lead to a blowout growth in the sales of Rolls-Royce and Bentley.

At that time, the company's own automobile direct sales stores will not only enable the company to more clearly grasp the market pulse, but also have a deterrent effect on automobile dealers and maintain more initiative.

They can also use the aura of being the originator of the 4S standard for automobiles to sell their own cars.

There are so many benefits!

However, in order to get the biggest slice of the cake, before the Bentley Continental was launched, the Rolls-Royce Motor Cars 4S store would only sell cars and would not release the 4S standards.

In total, Xia Yu gave Rolls-Royce Motor Cars three trump cards: the new Rolls-Royce Phantom, which was used to boost sales of the Rolls-Royce brand; the implementation plan for the transformation of Bentley; and the 4S standards at the end.

Xia Yu is confident that with these three trump cards and strong financial support, it will be difficult for Rolls-Royce Motor Cars not to rise!