Geely Automobile Holdings:Improved visibility on Lynk &Co brand with unique business model

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On Feb 23, 2017, Geely hosted an investor presentation with Alain Vissier,Senior Vice President of its Lynk & Co. brand. The presentation highlightedthe following details from the brand’s new business model: 1) Spot trendsand learn from customers before engineering products with connectivityrelatedtech features; 2) Provide “care-free subscription” businessmodel featuring financing options, insurance and service packages andconvenience offers; also, allow users to swap cars a few years after sale(also embed car sharing features in the cars). In addition, the residualvalue will be controlled better; 3) Implement a one price strategy toavoid different prices at the dealer level; 4) Provide lean product offeringwith ~20 builds per model in China and 10 builds per model in EU/USfocusing on similar specs and different fashion designs to choose from,which will help reduce manufacturing cost and complexity of supply chainmanagement; 5) Adopt direct sales outside China, but continue to use theexisting dealer network in China (Geely is working with BABA on onlinesales currently); 6) Timeline: Shanghai launch event in April 2017, formalsales in China in 4Q17, and formal sales in EU (Berlin) and US (SanFrancisco) in 1Q19.