Automotive News Europe - August 2019 - 12

AUTOMOTIVE NEWS EUROPE

Q&A

QA Coming in 2020

Lynk & CO boss outlines European launch plan for brand's China-made models

lain Visser, a veteran executive with
experience working at Ford, General Motors and Volvo, has been CEO
of Zhejiang Geely Holding startup Lynk
& CO since 2015. Instead of creating a
traditional dealer network, Lynk & CO will
offer subscriptions to customers, market
its cars online, and sell through branded
flagship stores and so-called "pop-up"
stores. The company began sales in China
last year and plans to enter the European
market in 2020 with the 01 compact
crossover, which shares its architecture
with the Volvo XC40. Visser spoke about
Lynk & CO's next steps with Automotive
News Europe Correspondent Peter Sigal.
What is the status of Lynk & CO's activities in Europe?
The plan is still to start producing the vehicles for Europe in the second quarter of
2020. Not in Ghent [Volvo's Belgium factory], but in China. That is the only thing
that has changed. We decided to produce
in China for the simple reason that the
Volvo XC40 was doing so well that we
couldn't get the allocation in the [Belgian]
factory that we think we need for Europe.
We would have had the prospect of having two production plants, Ghent and
China, which is a major confusion and
cost complication. The rest of the plan is
intact. We will open a store and launch
in Amsterdam next year, then we will go
step by step to other major cities.
With your subscription offer, is Lynk
& CO going to position itself as a mobility company?
Automakers risk being mere suppliers to
companies that offer more mobility options. That could be their choice -- but
among volume manufacturers it will be
about who offers the lowest price. That
puts long-term profitability at risk. It's better to become a mobility company yourself.
Do you know how much consumers
are willing to pay for mobility?
We have done research in Europe and
the U.S., and we have found that it
is very, very high, about 500 euros a
month. And, this is from people who say,

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the traditional buying and leasing model is
that young customers don't want to commit to a long-term investment. We believe
that the ability to stop our lease at any
time is the trigger to get people on board.
What will you do with cars when the
subscription ends?
We will offer them to subscribers again,
but on a sliding scale. If you subscribe to a
car for five months and say, "I really don't
need it anymore," we take back the car.
The next customer could have a choice of
taking a new car for 500 euros a month, or
a six-month-old car for 400 euros.

Meet the boss
❚ NAME: Alain Visser
❚ TITLE: Lynk & CO CEO
❚ AGE: 55
❚ MAIN CHALLENGE: Rolling

out Lynk & CO in Europe and
North America without a
traditional dealer network.

"I can't afford a car," but then they take
taxis, they use Uber and public transportation -- and you add it all up, and it's
500 euros. But they are not aware of it.
However, if you buy a car and your lease
contract is 500 euros a month, then you
know you are spending the money.
How many subscriptions do you expect?
By 2021, we are planning for a total volume of 500,000 vehicles annually. In
China the majority of that will be sales. In
Europe the percentage of subscriptions is
to be determined.

So the cars have to be durable and
very well built, right?
Exactly. It's always a bit provocative when
I say this, but there is something not very
ethical about the car industry. We have
traditionally made money on servicing cars, not selling them. So, we make
money on making customers do what
they hate most, which is going back to
dealers. But for us, that's where we lose
money, because in a subscription the service is part of the cost. So the more our
cars need repair, the less we profit.
Lynk & CO has bigger aspirations, especially in China, where you aim to
grow to 10 models from three now.
Will Europe get all these cars?
No. We have the luxury of having a substantial portfolio of models but we believe we only need a few for Europe. It
will be substantially less than in China.

What will subscriptions cost?
We haven't disclosed the pricing. But it definitely won't be 250 euros. That's too low.

EU emissions regulations are about
to get much tougher. Does the Lynk &
CO brand have its own targets? What
do you expect emissions to be for
your plug-in hybrid 01 model?
We will have our own emissions targets.
We can't disclose emissions yet, but the
fact that we are going to offer only plug-in
hybrids and electric cars gives us an edge.

Is there a sweet spot for the length of
a subscription?
The honest answer is: We don't know. Our
research shows the biggest issue today for

Could you envision Lynk & CO as a
full-electric brand in the near future?
Yes, and that will surely happen. The
only question is when. ANE

AUGUST 2019

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Automotive News Europe - August 2019

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