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Before anyone could respond, Lin Haoran continued, "For example, I believe that the privatization of state-owned enterprises implemented during Margaret Thatcher's term was the best remedy for Britain."

While it may cause some short-term pain, with rising unemployment and exacerbated social tensions, in the long run, it is an essential path for the UK economy to regain its vitality.

Hearing Lin Haoran's affirmation of the state-owned enterprise privatization reforms she implemented during her term, a barely perceptible hint of approval flashed in Margaret Thatcher's eyes.

Unfortunately, she soon sighed again.

The privatization of British state-owned enterprises has not progressed smoothly due to numerous obstacles.

If they are not privatized, these state-owned enterprises will eventually drag down the government's finances.

They are like bottomless pits, swallowing huge amounts of government subsidies every year, yet producing very little.

British Steel, British Coal Mining, British Rail, British Airways, Leyland Group...

These things that were once the pride of the nation have now become a heavy burden.

The government wants to sell, but the unions oppose it.

If the union opposes it, the government will not dare to force it.

This is a deadlock, and Margaret Thatcher is trying to untie it with her tough methods, but the process is proving more difficult than anyone imagined.

"Your Excellency Prime Minister, I understand the difficulties of privatizing state-owned enterprises. The power of labor unions, public opposition, and the pain of short-term unemployment are all real problems."

"But I think that instead of being scared off by these problems, we should try to break them down and solve them one by one," Lin Haoran said with a smile.

Upon hearing this, the Iron Lady's eyes lit up, and she asked with a slight shift in her gaze, "Mr. Lin, do you have any specific suggestions?"

"As for suggestions..." Lin Haoran paused, not in a hurry to answer, but asked in return, "As far as I know, you have a car company called Leland Group, which is currently facing the toughest challenge in the reform of state-owned enterprises. I wonder if I'm right?"

Minister Lawrence chimed in: “Indeed, since its nationalization in 1975, the Leyland Group has received more than £10 billion in subsidies from the British Treasury, yet it has not only failed to make a profit, but has also been losing more and more money each year.”

The factory's capacity utilization rate is less than 60%, its market share continues to shrink, and most of the more than 30 car brands it acquired have stopped production, with only a few brands barely maintaining operations.

Rover, Austin, MG, Land Rover, Jaguar... these once-famous names are now struggling in the quagmire of the Leyland Group.

The entire group is like a huge, bloated museum, filled with historical relics, but with little that can truly create value.

Even so, the conflict between unions and management has intensified, and the Leyland Group's problems can be seen as a microcosm of the predicament of British manufacturing.

At this point, Minister Lawrence sighed.

Once, the British automotive industry was the pride of the world.

Coventry, Birmingham, Oxford—these are cities whose names were once inextricably linked to the automobile industry.

Rolls-Royce, Bentley, Jaguar, Land Rover, Rover, MG, and so on—each of these brands is a crystallization of British industrial civilization.

But today, the numerous long-established car brands under the huge Leyland Motors Group are struggling to survive, relying on British government funding every year. It is, undeniably, a huge irony.

A country that once rose to prominence through the Industrial Revolution now relies on government subsidies to maintain its dying industrial heritage.

Ironically, the subsidies did not revitalize these businesses; instead, they plunged them into an even deeper dependence.

The more subsidies are provided, the greater the losses become; the greater the losses, the greater the need for subsidies.

This is a vicious cycle with no solution.

Lin Haoran smiled and said, "Take Leyland Group as an example. If we can first break it down into multiple independent business units, such as passenger cars, commercial vehicles, and each independent car brand, and then find buyers for each separately, instead of selling it as a whole, then each unit will be smaller and more easily accepted by the market, and the opposition from the labor union will be weakened accordingly."

In addition, some compensation plans can be provided to workers, such as job placement guarantees, so that workers can feel the tangible benefits brought about by the reform, rather than only feeling fear and loss.

The most difficult aspect of reform has never been the technical issues, but rather the distribution of benefits. As long as the majority of people can see hope in the reform process, the resistance to reform will be much smaller.

Bao Yugang looked at Lin Haoran in surprise, naturally understanding why Lin Haoran had mentioned the Leland Group.

He hadn't expected that Lin Haoran would be able to so calmly steer the conversation toward the Leyland Group when facing the British Prime Minister and several ministers.

Moreover, it was done in a manner that "offered advice and solutions for them," rather than in a manner that "I want to buy your products."

"The most difficult aspect of reform has never been the technical issues, but rather the distribution of benefits." This statement prompted the Iron Lady to repeat herself.

Her eyes flickered slightly, as if she were pondering the deeper meaning behind those words.

Then she looked up at Lin Haoran, her tone unusually serious: "Mr. Lin, what you said is very good."

Lin Haoran bowed slightly: "Your Excellency the Prime Minister is too kind."

The Iron Lady picked up her coffee cup, took a sip, then put it down and said slowly, "Mr. Lin, your ideas about the Leland Group are indeed very inspiring. Breaking down the business units, finding buyers separately, and providing compensation plans for the workers—if these measures can be implemented, they could indeed break the current deadlock."

However, even if Leyland Group were to split up, it would be difficult to find suitable buyers, especially for its loss-making brands, which almost no one would be willing to take over.

Rover, Austin, MG, Jaguar, Land Rover, and other brands, though once glorious, are now in a situation that deters most potential buyers.

Even if sold separately, it's difficult to guarantee that each unit will find a suitable buyer.

Lin Haoran and Bao Yugang couldn't help but exchange a glance, their eyes filled with a knowing smile.

The Iron Lady has walked right into this trap!

Lin Haoran's shift of the topic to the Leland Group was well worth it; he analyzed the economic situation, affirmed the privatization reform, and offered suggestions for splitting and selling the company.

After so much buildup, we finally got to hear the Iron Lady say those words.

Lin Haoran secretly breathed a sigh of relief, but his face remained expressionless.

He had already discussed it with Bao Yugang, and even if it were an acquisition, it would be more appropriate for Bao Yugang to take the lead, since Bao Yugang is a British citizen.

Lin Haoran, as the financial backer and strategic planner, drove the entire acquisition plan behind the scenes. This arrangement not only avoided public backlash against "foreign investment in British industrial heritage" but also made it easier for the British government and the outside world to accept.

After all, Bao Yugang is a British knight, an "insider" personally awarded by the Queen of England. With him on the front lines, there would be much less hostility from both the unions and the media.

At this moment, Bao Yugang spoke up: "Your Excellency the Prime Minister, Your Excellencies Ministers, if the price is right, I am actually willing to take over one or two car brands."

Bao Yugang's words immediately drew everyone's attention.

No one expected that Bao Yugang, who had remained silent all night, would deliver a bombshell when he finally spoke.

Several ministers looked on with surprise, after all, Bao Yugang did have a high reputation in British political and business circles, but no one expected him to take the initiative to express his opinion at this critical juncture.

Margaret Thatcher's gaze also turned to Bao Yugang, and she said in surprise, "Sir Bao, are you serious?"

“Of course I’m serious.” Bao Yugang calmly picked up his teacup, took a sip, and then put it down. “I’ve been a British citizen for over 20 years and I’m very familiar with the business environment and rules here.”

Although Leyland Group is currently facing operational difficulties, its brand value and technological foundation are real. If the conditions and price are right, I would be willing to acquire one or two of its brands.

He paused, then continued, "Moreover, having me acquire these brands can avoid a lot of unnecessary controversy. After all, I am a British knight, and if I take over these brands, the outside world will not interpret it as foreign invasion, but rather as a local entrepreneur saving Britain's industrial heritage."

The ministers couldn't help but nod in agreement; Bao Yugang's statement was truly a timely help.

From the beginning of her term in 1979, the Iron Lady included privatization in her policy direction. In recent years, she has been very cautious in promoting privatization because of the great resistance.

In addition, the stock market has been sluggish in recent years due to the second oil crisis. Institutions and conglomerates do not have enough funds and confidence to take over the assets of large state-owned enterprises. Forcing them to go public will not only result in a low selling price, but may even lead to the failure of privatization.

Coupled with a lack of consensus between the ruling and opposition parties, strong political resistance, the heavy burden of large state-owned enterprises and their inability to be sold directly, the fact that labor unions were still at their peak and the risk of confrontation was uncontrollable, and a complete lack of preparation at the institutional and operational levels, Margaret Thatcher's privatization reforms have been very difficult to advance.

She needs a breakthrough, a successful case that proves the feasibility of privatization, a landmark deal that leaves opponents speechless.

Leland Group was the ideal breakthrough point in her eyes.

This group is seen as the pride of Britain by the public, but in the eyes of the government, it is nothing but a bottomless pit.

Hundreds of millions of pounds in government subsidies are poured in every year, but it doesn't even make a ripple.

The factory's capacity utilization rate is less than 60%, its market share continues to shrink, management and the labor union are arguing amongst themselves, and R&D investment is almost zero.

Instead of continuing to support such enterprises with taxpayers' money, it would be better to sell them off as soon as possible. Even if they don't fetch a good price, at least the huge subsidies each year can be saved.

Bao Yugang's statement provided her with a perfect opportunity.

A British knight, an "insider" personally honored by the Queen, is willing to take over the brands under the Leyland Group. This not only aligns with her privatization reform direction but also effectively avoids the public opinion risk of "foreign invasion."

More importantly, Bao Yugang's prestige and connections in the UK would make it easier for the deal to gain approval from Parliament and the media.

Margaret Thatcher was silent for a few seconds, her gaze shifting back and forth between Bao Yugang and Lin Haoran, before she slowly spoke: "Sir Bao, it is indeed very good news that you are willing to take over the Leyland Group's brand."

However, I need to know which specific brands you are interested in, and in what manner you intend to acquire them.

Bao Yugang glanced at Lin Haoran, who nodded slightly, signaling him to continue.

Bao Yugang then said, "Your Excellency, my initial idea is that I intend to acquire the Austin brand and the Land Rover brand."

He paused for a moment, then continued, "As for the acquisition method, I prefer a full acquisition. The key is to ensure that the brand can operate independently after the acquisition, without being burdened by the original Leyland Group system. I will find a suitable partner for the funding, so Your Excellency the Prime Minister need not worry."

These two brands were actually the final decision made by Lin Haoran after careful consideration.

Acquiring the Austin brand is essentially equivalent to acquiring three brands: Austin, MG, and MINI.

MG and MINI are heavily associated with Austin.

MG's sporting DNA and MINI's cultural symbols are both built upon Austin's technological platform and brand system.

Acquiring Austin means bringing these three brands under your control: a mid-range family car brand, a sports sub-brand, and a premium small car brand, forming a complete product matrix.

As for Land Rover, although its annual sales are only over 30,000 units, its long-term brand value is top-notch. Land Rover is the global leader in the off-road field, and the luxury attributes of the Range Rover have already been established. Its value will grow exponentially after the SUV market explodes, making it a typical high-quality asset with long-term growth potential.

Acquiring the Austin and Land Rover brands means covering multiple market segments, including entry-level, mid-range, luxury, off-road, sporty, and premium small cars.

Austin is responsible for volume sales, MG is responsible for sportiness and youthfulness, MINI is responsible for premium small cars and cultural symbols, and Land Rover is responsible for high-end off-road vehicles and luxury SUVs.

Although these four brands are independent, they can share technology platforms, supply chains, and sales channels, forming a strong synergy.

More importantly, this brand matrix is ​​a perfect fit for Lin Haoran's industrial layout in mainland China.

Austin and MG can be mass-produced in mainland China, leveraging their low-cost advantage to capture the global low-end market; MINI can take a premium route, targeting young urban consumers; while Land Rover can retain its high-end manufacturing in the UK, maintaining its luxury brand status and premium pricing power.

This approach allows for full utilization of the mainland's production capacity advantages while preserving the high-end image of British brands, achieving a perfect closed loop of "British brand + mainland manufacturing + global sales".

Although Bao Yugang didn't know much about it, he only intended to be a minor shareholder. He was just there to help Lin Haoran with the acquisition. The specific brand operation and strategic planning would still have to be carried out by Lin Haoran's own team.

So he didn't care about it and didn't ask any questions. He just followed Lin Haoran's instructions and conveyed the message.

After exchanging glances with several ministers, Margaret Thatcher spoke up, saying, "Sir, this matter is too important for us to draw any conclusions on. We need to have a thorough discussion and assessment with the Cabinet and the management of the Leyland Group."

However, I can tell you definitively that the government is open to such acquisition intentions.

She paused, then continued, "Here's what we'll do: I'll have Minister Lawrence lead a preliminary working meeting within a week, inviting the Leland Group's management, relevant officials from the Treasury Department, and your representatives to participate. We'll start by discussing the framework and principles of the acquisition, and the specific details can be finalized in subsequent negotiations."

Bao Yugang nodded: "This arrangement is very reasonable. I will also prepare a preliminary letter of intent for acquisition and a brand operation plan as soon as possible for the working group to refer to."

"Then I'll leave it to Sir Bob. It's getting late, let's call it a night," Margaret Thatcher said, rising to her feet.

Everyone stood up, shook hands, and said goodbye. (End of Chapter)