Lynk & Co, a joint brand of Geely and its Swedish subsidiary Volvo, will not pass on the additional tariff of around 19 percent to buyers, European brand boss Nicolas Appelgren told the Reuters news agency on the sidelines of the Automechanika automotive supplier trade fair in Frankfurt.
Lynk is launching a fully electric compact SUV in Europe in October. “We have to set the price for the car correctly in the market and work from there,” he said in the interview published on Wednesday. Customs are “not a knife at the throat.”
Geely looking for a new location
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However, the next electric car for Europe will also be produced here, added Appelgren. Geely is currently looking for a location for a factory. Two years ago, the Chinese were already in talks with the government in Poland about this. “Even if some in Europe turn against us, we will never turn against the European market,” said Geely manager Victor Yang at a press conference at the trade fair.
In addition to Geely, electric car manufacturers Chery, Great Wall Motor and the Chinese market leader BYD also want to produce cars locally in Europe in order to avoid customs duties. This increases the pressure on European car companies, as was recently seen with Volkswagen, although the EU wants to protect the domestic industry with the punitive tariffs. The surcharge also affects cars made in China by European manufacturers. The head of the Spanish Volkswagen subsidiary Seat, Wayne Griffiths, recently warned that the tariffs could seal the end of the Cupra model from China and endanger the car manufacturer’s financial future.
Chinese value chain in Europe
Like several other newcomers from China, Geely used the Automechanika in Frankfurt, which is actually a trade fair for automotive suppliers without the involvement of car manufacturers, as a stage. “We want the electric cars from Chinese manufacturers, which are currently still relatively unknown, to gain the trust of the industry,” said trade fair director Olaf Musshoff. Suppliers from China are strongly represented in Frankfurt with almost 900 of the total of 4,200 participating companies from more than 170 countries. This is also a sign that a Chinese value chain is being built up in Europe – just as the German automotive industry did in China decades ago.
Only half as many German suppliers as Chinese companies are represented at the industry show. The management consultancy PwC warned in a recently published study that the investment power of German suppliers is suffering from reduced access to the capital market and the pressure to reduce costs. Chinese competitors, often supported by the state, are investing more in improving batteries and software and are thus gaining market share from German and Japanese suppliers.
The Chinese automotive sector is also investing heavily in expansion abroad as the Chinese market is weakening. In the first seven months of the year, the market share of Chinese brands in car sales in Europe rose to 17 percent from 12 percent in the same period last year, according to data from the consulting firm Inovev. Car exports from China reached a record high. Geely, for example, sold around 200,000 cars in Europe in the first half of the year.
ePaper
Lynk & Co: The Rising Star in the European Automotive Market
In recent years, the European automotive market has witnessed the emergence of new players from China, and one of the most promising brands is Lynk & Co. As a joint brand of Geely and its Swedish subsidiary Volvo, Lynk & Co is making waves in the industry with its innovative approach and commitment to electric vehicles.
A Commitment to Europe
In a recent interview, European brand boss Nicolas Appelgren reiterated Lynk & Co’s commitment to the European market, despite the challenges posed by customs duties. The brand has announced that it will not pass on the additional tariff of around 19 percent to buyers, ensuring that customers can enjoy affordable prices for its electric vehicles. This move is seen as a significant step towards building trust with European customers and establishing a strong presence in the market.
Electric SUV Launch in October
Lynk & Co is set to launch a fully electric compact SUV in Europe in October, marking a significant milestone in its European expansion plans. According to Appelgren, the brand will focus on setting the correct price for the car in the market, rather than passing on customs duties to customers. This approach is likely to resonate with environmentally conscious consumers who are increasingly looking for sustainable mobility options.
Geely’s European Ambitions
Lynk & Co’s parent company, Geely, is also expanding its presence in Europe, with plans to establish a new factory in the region. The company has been in talks with the Polish government for over two years, and Geely manager Victor Yang has reaffirmed the company’s commitment to the European market, stating, “Even if some in Europe turn against us, we will never turn against the European market.”
Chinese Value Chain in Europe
The Automechanika trade fair in Frankfurt has provided a platform for Chinese automakers like Geely, Chery, Great Wall Motor, and BYD to showcase their electric vehicles and gain the trust of the European industry. Suppliers from China are strongly represented at the fair, with almost 900 participating companies, signifying a significant shift in the global automotive landscape.
Competitive Pressure on European Brands
The increasing presence of Chinese automakers in Europe has put pressure on local brands, as seen in the case of Volkswagen, where the surcharge could seal the end of the Cupra model from China and endanger the car manufacturer’s financial future. European brands will need to adapt to the changing market dynamics and invest in improving batteries and software to remain competitive.
Market Trends and Insights
According to data from Inovev, the market share of Chinese brands in car sales in Europe has risen to 17 percent from 12 percent in the same period last year. Car exports from China have also reached a record high, with Geely selling around 200,000 cars in Europe in the first half of the year. This trend is expected to continue, driven by the Chinese automotive sector’s investment in expansion abroad as the domestic market weakens.
Lynk & Co is poised to make a significant impact in the European automotive market, with its commitment to electric vehicles and affordable prices. As the Chinese value chain continues to expand in Europe, local brands will need to adapt and innovate to remain competitive. The future of the automotive industry is electric, and Lynk & Co is at the forefront of this revolution.
References:
<a href="https://it.wikipedia.org/wiki/Lynk%26Co”>[2]
<a href="https://www.quattroruote.it/news/nuovi-modelli/2024/04/26/geelysalonedipechinonovotazeekrlynkcolotusniojiyue_.html”>[3]
Lynk Co سعر
Lynk & Co: The Rising Star in the European Automotive Market
Lynk & Co, a joint brand of Geely and Volvo, is taking the European automotive market by storm with its innovative approach to electric vehicles and commitment to producing cars locally in Europe. In an interview with Reuters, European brand boss Nicolas Appelgren revealed that Lynk & Co will not pass on the additional tariff of around 19 percent to buyers, instead choosing to absorb the cost to maintain market share <a href="https://www.alvolante.it/listinoauto/lynk%26co-01″>[1[1].
Geely Looking for a New Location
Geely, the parent company of Lynk & Co, is currently searching for a location to establish a factory in Europe [2[2]. This move is part of Geely’s strategy to produce cars locally in Europe and avoid customs duties. Two years ago, the company was in talks with the Polish government to establish a factory, and now it’s closer to making that a reality. According to Geely manager Victor Yang, “even if some in Europe turn against us, we will never turn against the European market” [2[2].
Chinese Value Chain in Europe
The Automechanika trade fair in Frankfurt saw Geely, along with other Chinese manufacturers, such as Chery, Great Wall Motor, and BYD, showcasing their electric vehicles and highlighting their commitment to producing cars locally in Europe <a href="https://it.wikipedia.org/wiki/Lynk%26Co01″>[3[3]. This move is seen as a way to avoid customs duties and increase pressure on European car companies. The Chinese automotive sector is investing heavily in expansion abroad, particularly in Europe, as the Chinese market weakens.
Competition and Investment
The investment power of German suppliers is suffering from reduced access to the capital market and pressure to reduce costs. Chinese competitors, often supported by the state, are investing more in improving batteries and software, gaining market share from German and Japanese suppliers <a href="https://it.wikipedia.org/wiki/Lynk%26Co01″>[3[3]. The market share of Chinese brands in car sales in Europe has risen to 17 percent from 12 percent in the same period last year, according to data from the consulting firm Inovev <a href="https://it.wikipedia.org/wiki/Lynk%26Co01″>[3[3].
The Future of Lynk & Co in Europe
Lynk & Co is expected to continue its growth in the European market, with plans to launch a fully electric compact SUV in October. The company’s commitment to producing cars locally in Europe and absorbing the additional
