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An Conghui:LYNK & CO Going Head-to-Head with Major JV Brands

Date:10-27 13:57 Source:autochina.comnews.cn Authour:未知

Competition in a market segment is not about product quality alone but about overall competitiveness, so LYNK & CO is going to create innovations in product concepts, platform technologies, marketing modes, and service experience. This is what will give it the strength to go head-to-head with major JV brands.

LYNK & CO is benchmarking the luxury brands and plans to go head-to-head with major JV brands.

An Conghui:LYNK & CO Going Head-to-Head with Major JV Brands

Geely just keeps on stirring the public’s imagination. On the 20th, LYNK&CO, a whole new brand under Geely Group, was launched in Berlin, Germany. On the 19th, An Conghui, President and CEO of Geely Group, held a breakfast meeting with Chinese journalists including Li Anding, He Lun and Li San in China Euro Vehicle Technology (CEVT) in Gothenburg, Sweden, and shared some of his thoughts on the market positioning of LYNK & CO, its relations with Volvo and Geely, and the focus of competition and innovations in the future, demonstrating the Chinese brand’s intention of gaining a foothold in the world market, and its confidence that it can achieve this.

An Conghui revealed that LYNK & CO’s first SUV would be launched next year.

Q: Geely has seen a robust upward trend over the past two years. Why does it want to build another new brand?

An Conghui: Geely saw rapidly growing sales this year. At the beginning of 2016, our sales target was 600,000 vehicles, but based on the current situation, we now expect to sell 700,000. In the second half of this year, year-on-year monthly growth will be 70-80% and annual growth is expected to be up to 40%. This strong performance has boosted our belief that we can achieve a sales target of 2 million vehicles by 2020.

Geely realized as soon as it entered the car manufacturing business that to achieve sustainable development, it must be able to gain a worldwide foothold and penetrate the markets in developed countries. 2 million cars is just the basis and threshold for gaining such a foothold.

However, if Geely really wants to penetrate the markets in developed countries, it has to adopt high technical standards. Currently, Geely is still weak in technology. LYNK & CO products will be the first that Geely will develop on the CMA architecture. The CMA architecture and Volvo’s technical standards together have provided Geely with an excellent technology base to attack markets in developed countries.

Compact Modular Architecture (CMA) was created by CEVT, whose management structure consists of CEOs and R&D personnel from Volvo, Geely and Manganese Bronze. CEVT has 1,300 employees and 800 consultants and cooperates with several companies. In China, there are also 500 employees. CEVT’S R&D personnel are all excellent engineers from various car makers around the world. Together they built CMA.

CMA was not a zero-based architecture. Instead, it was built jointly by Geely and Volvo on the basis of Volvo’s technologies, and its aim is to be a future concept-leader.

Therefore, LYNK & CO is benchmarking the luxury brands and plans to go head-to-head with major JV brands with JV-brand prices.

Q: What type of relations does LYNK & CO have with Geely and Volvo? Will it repeat the old multi-brand strategy error?

An Conghui: Geely’s Englon, Emgrand and Gleagle have no differences in products and technologies. They are just the same product under different brands and with different appearances in the same market segment.

However, LYNK & CO is about to enter a market segment that is totally different from the Geely and Volvo segments. There will be overlaps, but no conflict will occur.

Volvo targets the 10% luxury market while Geely targets the 40% local brand market. The other 50% blank market where Geely has not yet set foot is currently occupied mainly by major JV brands. LYNK & CO now intends to enter this 50% blank market and intends to contribute 300,000-400,000 vehicle sales to Geely’s 2 million target in the future.

Similar to the approach of Audi, Volkswagen and Skoda under Volkswagen AG, which are all built based on the MQB modular system but different in design language, style, market segment, product specification and technology, LYNK & CO will share the CMA system with Geely and Volvo at the front end, but will be entirely independent from the other two in the back-end fields. This will be very much apparent to the customer - it will have different design, R&D technologies, and distribution channels - and the subsequent business model will also change.

As a whole new brand, LYNK & CO will not be carrying any baggage. It can therefore innovate entirely new marketing modes. These new marketing modes will respond very directly to buyer’s personalized needs in the internet era, and also focus attention on user experience. It will provide different buying experiences to different sectors in different countries and regions[1] .

Q: Do China and the world need another new car brand? What does LYNK & CO have to do if it is to compete with major JV brands?

An Conghui: CMA came out four years later than Volkswagen’s MQB, but luckily the timing is right – it can not only meet the traditional car needs, but also new energy and autonomous driving needs. By definition, this is a real network plus new energy architecture.

Therefore, LYNK & CO products developed on the CMA will respond fully to future needs, whether in design language or technology. I believe LYNK & CO represents the real new energy + network trend for automobile products in the future.

For example, traditional customization is still limited to the established configurations in OEM databases, but LYNK & CO’s goal is to ensure safety and at the same time fully meet personalized needs, like showing the customer’ name and informing the customer of the preparation progress for their individual vehicle, and telling them when they can pick up their car… individual customers will be individually involved in their products.

In terms of manufacturing, LYNK & CO has prepared a systematic plan for the whole R&D, processing and ordering process from the start so that traditional and new energy vehicles can share the same production lines and the platforms, the products and even the manufacturing are modularized. Highly flexible and automated production lines will be able to meet personalized needs.

Competition in a market segment is not about product quality alone but about overall competitiveness, so LYNK & CO is going to create innovations in product concepts, platform technologies, marketing modes, and service experience. This is what will give it the strength to go head-to-head with major JV brands.


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