China's Geely Launches New Connected Autos -- WSJ
21 October 2016 - 8:03AM
Dow Jones News
Chinese auto maker to sell compact SUVs that are equipped with
internet service
By Matthias Verbergt and Friedrich Geiger
Zhejiang Geely Holding Group Co., the Chinese auto maker that
owns Volvo Cars, launched a new automobile brand aimed at motorists
who want to share their cars.
Called Lynk & Co., the new brand aims to tap the global
market for ride-sharing and car-hailing services while taking on
giants including Volkswagen AG and BMW AG. The company will start
selling its 01 compact sport-utility vehicle next year in China,
and in Europe and the U.S. in 2018.
The launch is the latest attempt by a Chinese car maker to
appeal to affluent westerners after earlier efforts failed. Qoros
Auto Co., Jiangling Motors Corp.'s Landwind brand and Brilliance
China Automotive Holdings all entered Western Europe in recent
years but sold very few cars.
The cars will have a permanent internet connection, allowing
owners to share their vehicles and generate rental income. The
feature make Lynk & Co. a rival of BMW's Mini brand, which
launched a model earlier this year which owners can rent out via
the company's DriveNow car-sharing service.
"We are competing against the likes of Uber as much as we are
against other car brands," said Alain Visser, senior vice president
of Lynk & Co.
In the coming five years, Lynk & Co. plans to launch at
least five models, which also will feature some autonomous-driving
capabilities, Mr. Visser said, adding that the company aims to sell
more than 500,000 cars by 2021.
The cars are being "designed for a modern, urban audience who
are used to collaborative consumption and all the benefits that
this brings," the company said.
Lynk & Co. plans to launch an open digital platform,
inviting developers to create networked applications for its
cars.
Sweden's Ericsson AB, Microsoft Corp. and Alibaba Group Holding
Ltd. will provide the cars' connectivity, IT and software services,
it said.
The company said it would keep down the prices of its vehicles
by limiting sales to online-only, with a fixed pricing model for
all markets, and by offering a small number of versions.
While Chinese car makers have been gaining on foreign rivals at
home in terms of design and quality, they fall short when it comes
to brand recognition overseas, and none currently sell passenger
cars under their own brands in the U.S. and Western Europe.
Lynk & Co.'s models will be based on a platform developed by
Volvo and Geely, and are designed to meet Western crash safety
standards.
The move to launch a new brand reverses a 2014 decision by the
company to adopt a single Geely brand.
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com and
Friedrich Geiger at friedrich.geiger@wsj.com
(END) Dow Jones Newswires
October 21, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.