In preparation for the Shanghai Motor Show this week, carmaker Lynk & Co. previewed its 03 Concept car, through which it plans to offer a pay-as-you-go subscription model. The company also declared its ambition to immediately enter the carsharing market.
As a new car brand, Lynk & Co. is poised to show itself as the part of the next generation of automakers that can pivot, spin, and whirl to customer tastes and demands. The 03 Concept is a perfect example, as the automaker envisions fully loaded, mono-spec cars that can be purchased online at a fixed price, with buyers having to fiddle with not much more than color choice, according to a published report. The company will offer traditional leasing and purchase options, but will also offer a pay-as-you-go subscription model — where drivers pay for vehicle usage on an on-demand basis.
Lynk & Co., founded in 2016, is a brand from Geely Auto Group, a subsidiary of Zhejiang Geely Holding Group — the owner of Volvo Cars and London Taxi Co. Geely Auto Group is one of China’s largest car manufacturers.
Lynk & Co., however, is not the first of automaker to offer a subscription model. Cadillac began offering a $1,500-a-month subscription in January 2017, which allows members to use an app to order on-demand delivery of Cadillac models.
Part of the increase for subscription models has been contributed to millennial demand. But the millennial attitude towards cars is also more nuanced, as the generation appears to view vehicles as a utilitarian concept rather than an experiential one, despite carmakers efforts to attempt the opposite.
Front seat view and dashboard of 03 Concept vehicle.
In September 2016, NerdWallet surveyed over 2,000 people 18 and older and found that 75% of millennials who own a car plan to buy another within the next five years, indicating that loyalty to a vehicle is not a concern. Another 43% of the respondents called owning a car “a hassle,” according to the survey.
To that end, Lynk & Co. plans to launch its own version of carsharing– once its vehicles are on the roads — which the company is calling, “the world’s first in-car digital share function,” according to a company press release.
The carshare will be a tailored experience for an individual through an app that uses digital keys, and has personalized settings –including seating positions and stereo memory presets. Such items will be part of a user’s profile so that they will be automatically available in every vehicle that a customer steps into. The company also announced a lifetime warranty on every car, as well as free data usage for connectivity purposes.
Those interested in learning more about the evolution of the transportation industry should join us at the second annual Auto Finance Innovation 2017 conference, May 17-18 at the Hilton Bayfront in San Diego. Visit www.autofinanceinnovation.com and to learn more.
