On Oct. 26, Geely Auto announced conditional sales of all the shares of LYNK&CO Auto Sales Company, meaning that Geely Auto will exclude the financial performance of LYNK&CO Auto Sales Company and its affiliated company from its financial report.
Firstly, for LYNK&CO Auto Sales Company part.
On one hand, with LYNK&CO Auto Sales Company being an entity, it will have a larger scale, better brand building and promising future. On the other hand, LYNK&CO will be positioned and identified as a more independent vehicle brand, shaping a strong joint competitiveness together with Geely Auto and Volvo.
The sale of LYNK&CO Auto Sales Company indicated Geely's strong confidence in its own development. It is well known that LYNK&CO is positioned as a high-end vehicle brand between Volvo and Geely. Thanks to Volvo's cutting-edge auto technologies, the LYNK&CO is deemed as a rival for Audi and Lexus, boasting a higher price and thus a large profit compared with Geely Auto brand. But with the release of its 3.0 products, Geely Auto enjoyed a continuous brand promotion, and key indexes such as sales, revenue and net profit of Geely Auto also surged in recent years.
After its annual sales reached 760,000 units in 2016, Geely Auto delivered 827,000 vehicles during the previous three quarters this year. Thus, Geely uplift its annual sales target to 1,100,000 units from 1,000,000 units. Supported by its strong growth momentum, Geely feels confident in its future development even without LYNK&CO brand. Therefore, for Geely part, the independent development of LYNK&CO brand will not only show Geely's confidence in LYNK&CO's development, but also signify Geely's confidence and strength in future auto industry.
