Chapter 37: Chapter 37: Persuading Mr. Leland
George led Mr. Leland out of the conference room, but instead of finding a private room to talk, he grabbed his car keys and guided Mr. Leland to the underground parking lot.
Upon reaching George's private vehicle, he asked, "Do you notice anything?"
Mr. Leland looked at the Lincoln parked before him but couldn't discern any difference in its sleek, black L-shaped exterior.
He replied honestly, "I don't."
"Then let's get inside and experience the difference," George said as he picked up the Portkey, opened the driver's door, and got in. From inside, he opened the passenger door, inviting Mr. Leland to join him.
After the recent modifications, George had regained his driver's license, as the vehicle no longer required hand-cranking to start. Though he typically relied on a driver, today he preferred to demonstrate the innovations himself.
As Mr. Leland settled into the passenger seat, he noticed something unusual—a raised section connected to the seat's main body by two smoothly polished steel tubes. When he leaned back, his head naturally rested on this protrusion, and he found it extremely comfortable.
"This is called a headrest," George explained. "It offers excellent support for the head and, in the event of a collision, helps prevent neck fractures caused by inertia."
"It's impressive—a truly great invention," Mr. Leland nodded in approval.
"So, Mr. Leland, if I were to license this patent to car manufacturers today, how many do you think would use it?"
"All of them," he replied without hesitation.
"Exactly. Every one of them would adopt it. But can Lincoln afford the patent fees right now? Don't worry; keep looking."
Mr. Leland looked down at the seat and felt the area George indicated. He discovered that the seat was composed of two distinct parts—the cushion and the backrest. Naturally, he glanced at the seat's side and found a small lever.
Following George's instructions, he pulled the lever, and the backrest reclined smoothly until it lay completely flat. With George's guidance, he returned it to its original position.
"This is just a temporary modification," George said. "It still needs refinement. But what do you think of the concept? It offers a comfortable resting space for passengers. Now, look at this part of the seat."
He pointed to the front of the seat where a steel rod was located. With a slight lift, Mr. Leland realized the entire seat could slide forward and backward.
Once again, the innovation astonished him. This feature could drastically improve comfort, allowing passengers to adjust the seat to their preferences. Watching George adjust the driver's seat to fit his build made the advantages even clearer.
Based on these seat innovations alone, Mr. Leland realized that incorporating them into Lincoln vehicles would require changes to their existing production lines. Besides the patent licensing costs, the company would need to invest in reconfiguring its manufacturing process.
Mr. Leland questioned whether Lincoln had the resources to implement such upgrades. Yet, if they didn't modernize, they risked obsolescence. At that point, regret would be futile.
Was there a way to use the technology without paying patent fees? Yes—by making George a shareholder. That way, usage fees could be deferred. But relinquishing ownership of his company was something Mr. Leland deeply resisted.
Sensing Mr. Leland's internal conflict, George continued, "If you agree to the merger, I can reserve 5% of the shares for you and allocate another 10% as management dividends. I'll also appoint you as CEO and won't interfere with your management—unless, of course, a decision endangers the company's survival."
Seeing Mr. Leland's growing interest, George added, "What do you think, Mr. Leland? It's worth considering, isn't it?"
In truth, Mr. Leland had already accepted the inevitability of George's proposal. With George's cutting-edge technologies, acquiring any smaller car manufacturer would allow him to expand quickly. If he launched a new car just two months ahead of competitors, it would take others at least four months to adapt, giving George a solid market lead.
That head start could translate into immense stock market gains, regardless of actual sales.
After contemplating for a moment longer, Mr. Leland finally nodded in agreement.
"Mr. Leland, I must say, you've made the right choice. Now, let me show you the final and most important invention."
Mr. Leland was taken aback. "And this one is the most important?"
He watched as George took out another Portkey and inserted it into a keyhole near the driver's control panel. Initially, George had intended to place it beside the steering wheel—as in future models—but the space was too limited for a convenient modification, so he chose a more accessible location.
Of course, this was only a prototype; mass production would allow for adjustments. This very car would later be displayed in Lincoln's showroom as a historic milestone.
As George turned the key, the car started. He shifted gears and pressed the accelerator. The vehicle glided forward.
After a ten-minute test drive, George returned to the same parking spot.
"How was it? You don't regret your decision now, do you?"
"Mr. Orwell, I am genuinely impressed. I had heard rumors about someone introducing a new battery at a recent tech expo, but I never imagined you had already developed a functioning electric start system. If widely adopted, this will revolutionize the automotive industry."
"I'm glad you think so. Now, let's move quickly."
"Yes, Mr. Orwell. I fully support the merger and will assist in acquiring all company shares."
"Don't worry. I stand by my word. But remember, we still have to put on a show. We can't let those speculators catch on."
"Understood, Mr. Orwell. I suppose I should start calling you boss now," Mr. Leland replied with a grin.
"Let's go. We shouldn't keep them waiting."
Back in the conference room, the others had been waiting for over forty minutes. The shareholder representatives were especially anxious, fearing the two had failed to reach an agreement.
Had George walked away, it would have devalued their shares significantly.
However, Mr. Leland entered with a smile, suggesting a favorable outcome. George, on the other hand, wore a grim expression, making some shareholders uneasy.
Without delay, George announced, "Gentlemen, Mr. Leland and I have reached an agreement. I will acquire all of Lincoln Company's shares at today's stock price. All shares—and the transaction must be completed within two days, or the deal is off. This clause will be written into the contract."
He turned to Paul. "Paul, you and Mr. Leland will draft the contract today."
To Mr. Leland, he said, "Gentlemen, I have school shortly, so let's expedite this. Notify all shareholders to gather in New York. I want the contract signed the day after tomorrow. The bank will have the funds ready."
The shareholder representatives were more than willing. As speculators, they had suffered significant losses with the decline of automotive stocks and lacked the financial backing of giants like Ford and General Motors. This was their chance to cut their losses.
Two days later, in the same conference room, George and Lincoln's seven shareholders signed the share transfer agreement.
George injected another \$6 million into the company. Combined with the \$4.5 million merger payment, the funds covered Lincoln's existing liabilities, production line modifications, and the construction of a new car seat factory adjacent to the plant.
This new facility, fully owned by George, would specialize in car seat manufacturing. He also planned to recruit top R&D talent.
George documented the various seat functions he had seen in future generations, outlining them as step-by-step R&D goals.
His long-term plan included licensing the electric start patent to manufacturers at 10% of each car's retail price. Seat technology could be sold as complete units or licensed via royalties, adding approximately 5% to each vehicle's cost. Custom designs and materials would also be offered.
These details were discussed extensively with Mr. Leland during their two days of preparation. Implementation would be his responsibility.
George believed in buying equity and letting the company's founder manage operations. After all, no one had more passion for a company than its founder.
They shared a unified vision of making Lincoln a top-tier luxury brand.
To that end, George introduced concept designs inspired by future classics such as Bentley, Rolls-Royce, Aston Martin, and Audi. He planned to patent and produce these models early, confident of their appeal.
However, George didn't unveil everything at once. He stayed about a decade ahead of the curve.
He also recognized the importance of motorsports in this era. Aston Martin, for example, was founded in 1913. Competitive success could enhance brand prestige.
George mentioned these ideas to Mr. Leland, leaving execution in his hands.
All patents were registered globally—a point George emphasized from the start. He spared no expense in ensuring airtight protection.
He even had Paul hire a professional patent lawyer to oversee filings, knowing their dedication and expertise could make a difference.
As with the Lockheed brothers—whose management skills were questionable but whose technical prowess was undeniable—there was always a place for talent.
And George intended to make the most of it.