Re: Lynk & Co reveals Volvo-based SUV that prioritises software & sharing THIS then would be the first full-on, plausible 'Chinese Invasion' of the developed markets (Europe, usa, Australia et al), based on the underlying Volvo standards of engineering and quality-durability-reliability.
That they will also be pursuing an internet-centric, Tesla-like distribution model makes it only more plausible?
The advantage Geely has is not just the Volvo technology and standards, as well as distribution network already-ready in many markets but also the large and likekly growing volumes at home, in China.
Since initially the whole point of launching this new brand in europe etc is precisely to buttress the new brand's attractiveness to domestic Chinese customers, who still disproportionately prefer foreign (esp American and European) brands, still take a lot of their automotive culture cues from the 'West'. The China market will reward a firm that achieves enough quality etc praise and acceptability in say Europe....with domestic purchases in large numbers at good margins?
By launching an all-new brand in EuroAmerica etc Geely will create a strong-pull domestic brand able to go up against the foreign-JV ones (VW, GM's chevy, buick, cadillac, Ford, etc) at higher prices and margins than the Geely brand itself is and would ever be able to command.
THAT scale, combined with platform, powertrain etc sharing with a surging, committed, invested-in Volvo would be a basis for growth and establishment in say Europe or America, financially, especially since Geely would look to benefit from breakthroughs in those markets based on (near-)future recessionary conditions that'd weaken the local European, American and Japanese/Korean incumbents financially.
THAT, after all, is how Toyota, Nissan and Honda broke through in the 1970's in the usa, and how Hyundai-Kia broke through opportunisically in the 90's/2000's: lower costs/prices, good/decent QualityDurabilityReliabilityService at times of repeated economic crises/difficulties in the usa+europe.
It is a bold and likely-risky endeavour: even Tata Motors has desisted from trying grow Tata Cars in the more developed markets, on the back of the J and esp LR successes they've had around the world, including the usa and china. Only buccaneering billionaires like the Geely owner (it is not a state owned car firm) from China have the nous and the VERY expensive audacity?! |