Shanghai(Gasgoo)-On Oct. 25, LYNK&CO, Geely Auto and Volvo's joint venture vehicle brand, showcased the 01 model at LYNK&CO concept store in Hangzhou, Zhejiang Province. Geely announced that the 01 2.0T series will have a price range between RMB 170,000 and RMB 240,000 according to its variants from Lite version to Pro version, and will target to compete with the VW Tiguan, Honda CR-V, Lexus Nx and Audi Q3.
Geely had invested heavily and took a high priority on R&D and design for LYNK&CO models. The R&D cost of LYNK&CO is said over 20 times higher than Geely's former models. Therefore, it's reasonable for LYNK&CO models to have relatively higher prices. But some criticism also arose, for example, the bricks-and-mortar stores will increase vast operation costs, LYNK&CO's first model is priced too high, and the LYNK&CO 01 features too much similar to Volvo's local-made XC40, etc.
Sharing the same platform with Volvo CX40
Designed by the superstar designer Peter Horbury, executive vice president design at Geely Auto Group, the LYNK&CO 01 boasts more beautiful and stylish appearance than its brother brand the Volvo XC40. It looks simple and decent with a high street style favored by youngsters. What's more, the LYNK&CO 01 also employs Volvo's powerful WEP4 2.0T engine, delivering a maximum power of 147kW and a peak torque of 300Nm. It is said that the LYNK&CO 01not only shares the same CMA platform with Volvo, but also share the same global supplier system with Volvo. Besides, it is the world's first model equipped with Bosch's ESP 9.3.
Learning from Tesla's sales and marketing modes
Lynk & Co's most compelling selling points are its way for consumers to purchase and use the vehicles. Similar to Tesla, Lynk & Co will sell models directly to consumers online, and consumers can also experience the Lynk & Co models in its bricks-and-mortar experiencing stores. What's more, it creates a new mode of leasing only that differs from Tesla. More attractively, Lynk & Co also will help consumers to pick up cars direct to their homes, and provide free lifelong maintenance and free road rescue services, etc.
According to a questionnaire, the price range between RMB 170,000 and RMB 240,000 for the Lynk & Co 01 is believed to be too high to buy for 70% consumers. But quite a number of insiders believe that this high-quality self-owned brand vehicle deserves the price.
It can be easily seen that the difficulty for the Lynk & Co 01 is not the vast operation cost of bricks-and-mortar stores, but the difficulties that Geely faces when it tends to go upscale. Measuring 4512/1857/1673mm with a wheelbase of 2734mm, the Lynk & Co 01 faces an intense competition from a variety of powerful JV brands of its same class, such as the VW Tiguan, Honda CR-V, Toyota RAV4 and Buick Envision, etc. Geely's swing on the position for the new JV brand may result from its consideration on the balance between the Lynk & Co and Volvo. For Geely, it is the overall position for its three subsidiary brands that matters. The perfect balance between Lynk & Co and Volvo will lead Geely to go upscale successfully.
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