Geely-owned Volvo Cars and Geely Auto have signed a memorandum of understanding (MoU) for a new commercial partnership with Lynk & Co in Europe, subject to final agreements.
If completed, Volvo Cars will become the “exclusive” importer of Lynk & Co cars in Europe and will oversee Lynk & Co’s commercial and brand operations across the region.
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The partnership also targets growth in sales and servicing activity for Volvo Cars’ retailer partners, positioning the retail network to benefit from additional volumes and aftersales work.
Volvo Cars intends to use its retailers to sell Lynk & Co cars, while also using its existing sales and servicing system in relevant European markets.
Volvo Cars expects the partnership to complement its product offering and broaden its consumer base, adding another brand to its European commercial set-up.
Erik Severinson, chief commercial officer at Volvo Cars, said: “With this new arrangement, we will leverage our commercial system to support Lynk & Co’s growth ambitions in Europe.
“At the same time, it enables Volvo Cars and our retail partners to address a wider customer base. With the support of our retailers and our commercial organisation, Lynk & Co can achieve its true potential in Europe.”
The companies said the intention is to create synergies by operating the Lynk & Co brand through Volvo Cars’ central commercial operations, while managing it at market level.
They added that this structure is expected to unlock operational and scale efficiencies within the Volvo Cars commercial system as Lynk & Co is integrated into established processes.
Responsibility for Lynk & Co’s global development, product certification and all operations outside Europe will remain with the brand’s parent company in China.
That parent company is fully owned by Geely Auto Group, which will continue to lead Lynk & Co’s activities beyond Europe under the proposed division of responsibilities.
The commercial partnership is expected to help Lynk & Co scale further by using Volvo Cars’ established retailer networks and service points in Europe.
At the same time, Volvo Cars said the arrangement would increase its addressable market and allow it to reach a wider audience without additional product investments.
The new arrangement builds on an existing partnership, with cars from both Volvo Cars and Lynk & Co already sold through the same retailers at selected locations in Europe.
