One of the most ambitious car debuts took place last week in Berlin.
The new SUV brand Lynk & Co will be constantly connected to the Internet and equipped with a “share” button that will allow owners to rent their car via a smartphone app. In addition, the car will have an open API and a dedicated app store to allow third-party developers to create apps for it.
All cars Lynk & Co, will be equipped with the latest hybrid drivetrain. Like Tesla Motors, buying a car can be done online via the website Lynk & Co. The brand is actively involved in social networks, aimed at urban youth and is considering Volkswagen and Fiat as its main competitors.
It all sounds impressive. Whether Lynk & Co new sub-brand BMW or Mercedes-Benz? No, this is a new Chinese brand to Zhejiang Geely Holding Group Co.
The Development Of Volvo
Company Geely is currently owned by the Swiss firm of Volvo Cars and the London Taxi Company. New Lynk & Co 01 will be produced in China. Sales are expected to begin in 2018. Soon to be released as a coupe sedan 02.
Lynk & Co emphasizes that design and engineering are fully European. The car’s design was developed by Peter Horbury, design Director of Geely, who previously has specialized in Volvo and Ford.
Automaker Geely has established a laboratory Euro Technology AB in Gothenburg, Sweden, three years ago and invited former Volvo engineers, headed by mats Pageham, former Director of R & d for a defunct automaker Saab. Geely also has created a totally new scalable automotive platform, “a Compact modular architecture”, which will be used for new compact Volvo. The energy will come from a three – or four-cylinder engines and electric motors.
CEO of Lynk & Co Alain Visser, former CEO of Volvo and Opel-01, called the new SUV “smartphone on wheels” and positions the brand as a fully digital company catering to young people.
His web site is a collage of photos of the urban youth and more like an advertising design Agency than a website car manufacturer.
In addition, Lynk & Co will not use a traditional dealer network or media advertising. Social media will be the main way to attract customers, and sales will be made through the website of the company.
An unusual approach
530 000 car sales last year in the domestic market, a private company Geely behind the larger public competitors, which rely on foreign joint ventures. Its share in the domestic market was a meager 2.6 percent in 2015.
For the domestic market Geely produces cheap cars with no frills . And even years after the acquisition of Volvo’s product range for China remains almost the same.
To develop know-how without creating a joint venture, Geely either had to make large investments or to acquire the assets of another automaker. Geely chose the latter and in 2010 offered $1.5 billion for struggling for survival of Volvo. This purchase was considered risky at the time. After the global financial crisis, many automakers went bankrupt and, like General Motors and Chrysler underwent government-sponsored reorganization.
But Geely took rare for Chinese companies approach. Instead squeeze out the Volvo and transfer its know-how in China as a springboard to launch your brand abroad, the company invested in independent development of Volvo and has reduced its intervention to a minimum.
Geely has invested $11 billion in the development of Volvo, while preserving its production and engineering capacities in Sweden. With fresh capital injection, Volvo became something of a pioneer and in the past year for the first time eclipsed competitors with 500,000 sales with its new XC90 SUV.
Patience can pay off
For Geely took eight years to launch the car in Europe a lot longer than anyone expected after the absorption of the Western automaker.
Geely used a patient approach, unusual for Chinese firms to ensure that engineering and technological expertise of Volvo (for a long time suffered from inadequate funding, being in the ownership of Ford Motor Company) will reach a high level. Study and retail strategy, Tesla Motor’s and the dealer network more advanced automakers, Geely came to model online sales. He examined the recent expansion, Uber technologies and AirBnB, came to the conclusion that cooperation can radically change the future of the automotive industry and automobileengine, especially among young people.
Some critics compare the launch of Lynk & Co, from early unsuccessful attempts of Chinese OEMs to enter Europe, such as Qoros Auto Co. and Landwind Jiangling Motor Corporation. But a deeper study of the circumstances makes it possible to make other conclusions.
Early attempts to enter the European market was erroneous. Design Jiangling Landwind SUV X7, for example, is a complete plagiarism of the Land Rover, the Range Rover Evoque. In June, Land Rover has filed a lawsuit against Jiangling for copying its design.
Despite the increase in production capacity, the cars of Chinese production are low quality. Geely needs to ensure the highest build quality.
We can say that the Lynk & Co is an Association of various companies, industries and ideas. Competitors are taking it seriously enough. Reuters reported that BMW and Daimler are already “closely watching what the price of Geely will offer European consumers.”
