If U.S. President Donald Trump’s proposal to impose border taxes on imported vehicles pushes through, it may likely affect the plans of Chinese automaker Geely Automobile Holdings Ltd to launch the Lynk & Co brand in the U.S. and Europe, a senior company executive said.
Geely is planning to launch the brand in San Francisco and Berlin before covering other cities in the next months, Alain Visser, senior vice president, said.
At the sidelines of the National Automobile Dealers Association convention in New Orleans, Visser told Reuters that the U.S. tax or tariff on imported cars may pose a risk to the company.
"That's an open question but we're going to offer employment in the U.S. so we believe there's a positive business case to let us in," Visser said.
The company said that Lynk is targeting the middle of the market where it is expected to challenged more recognized brands like Honda and Toyota, while Volve, which it bought from Ford in 2010, will concentrate on the premium vehicles market.
Meanwhile, Lynk & Co is set to partner with auto dealers to enable it to sell electric and hybrid cars in other company stores, while repair needs will be doneby a franchised dealer network.
"Our target is not to upset the dealers or say their model doesn't work," Visser said. "The dealer model can exist and we're going to offer them business."
According to the company, plug-in hybrids or full electric vehicles could be the brand's first vehicles that they will launch in Europe and the U.S.
"Because of the cost structure we have, we would be able to offer an electric car at the price of a normal combustion-engine car," Visser added.
Tesla Motors' plan to sell directly to consumers, instead of using franchisees, has been criticized by U.S. dealers and individual states.
In October last year, Lynk launched the compact SUV, 01 model, in Berlin.
This year, the company plans to open about 170 stores in China and around 100 stores in U.S. cities. Lynk said it will allow customers who do not want to buy a car to use cars for a subscription fee, with the revenue shared by Lynk and the owners.