Lynk & Co is set to have a faster and more effective global footprint by leveraging Volvo Cars’ existing distribution and service network.
In a statement regarding the increased collaboration between Volvo Cars and Geely Auto, the two companies will work together on the global expansion of the jointly owned Lynk & Co brand.
The quirky lifestyle-driven brand abandoned the traditional automotive business model of offering multiple variants, options and entry points. Offering one single trim level (fully loaded, no less) of their models but focusing on subscription or sharing of their Lynk & Co vehicles.
Usage was encouraging during the first year of business in China in 2018. Expansion of dedicated event spaces/showrooms dubbed Club were meant to happen in Europe in 2020, but the global pandemic put a halt to that.
As things became more settled down, Lynk & Co opened their first Club in Europe in Amsterdam last October and started the Gothenburg Club in January 2021. Lynk & Co will offer the updated 01 compact SUV for subscription or outright purchase at these Clubs.
With the announcement of Lynk & Co to be distributed by Volvo Cars, we might just see the brand in Malaysia in the near future. There are currently 14 Volvo dealerships in Malaysia.
Volvo Cars and Geely Auto have also confirmed the combination of their existing powertrain operations into a new standalone company. The company, expected to be in operation this year, will provide engines, transmissions, and next-generation dual-motor hybrid systems for use by both companies as well as other automobile manufacturers.
Both companies currently use the modular three- and four-cylinder engines in their respective products, such as the award-winning 1.5-litre engine in the Proton X50/Geely Binyue and the Volvo XC40.
Hakan Samuelsson, President and CEO of Volvo Cars, said: “Having evaluated different options to realise value, we concluded jointly that a collaboration model between two standalone companies is the best way to secure continued growth and at the same time achieve technological synergies in many areas. We welcome the opportunity of further and deeper collaboration with Geely Auto.”
The two companies, which are planning to share the new Volvo Cars’ next-generation SPA2 and Geely’s SEA electric architectures among their brands, have launched combined efforts to drive speed and efficiencies in the development of hardware and software for the next-generation world-leading modular EV architectures. This will also include the joint development of an autonomous driving solution under the lead of Volvo Cars’ Zenseact software development company.
“Geely Auto looks forward to partnering more closely with Volvo Cars, achieving significant synergies for our respective businesses. This will enable Geely Auto to accelerate its global expansion, to capitalise on our strengths in China and develop a new generation of world-class new-energy vehicles and associated mobility services,” said President and CEO of Geely Auto, An Conghui.
Intended sharing of platforms and architectures between the companies will drive additional synergies and allow for an expansion of product portfolios across the Volvo Cars, Geely, Lynk & Co and Polestar brands, and external partners.
