Geely has announced a strategic move in the electric vehicle sector, with its premium electric Zeekr brand taking control of the Lynk & Co brand. This decision aims to unlock synergies and reduce costs in the competitive Chinese BEV market.
As part of the restructuring plan, Zeekr will acquire Volvo Cars and Geely’s stakes in Lynk & Co, resulting in Zeekr holding a controlling 51% stake in Lynk & Co. Geely Automobile Holdings will retain the remaining 49% stake.
Moreover, Geely Auto plans to increase its stake in Zeekr to approximately 62.8%, further enhancing collaboration between Geely Auto, Lynk & Co, and Zeekr. This move is expected to improve industrial synergies, commonalities in hardware and software, supply chain efficiency, after-sales service, and accelerate the development of a stronger global automotive group.
The integration also includes clearer brand definitions with enhanced back-end technology synergies. Both Zeekr and Lynk & Co will maintain distinct market segments and unique positions globally.
Eric Li, Chairman of Geely Holding, emphasized the significance of this integration in implementing the company’s long-term strategic plans. He stated, “The coordination and integration of our brands support their sustainable operations and generate greater synergies that benefit sales, services, revenue, and product competitiveness, allowing our companies to provide greater value and opportunities to both global consumers and shareholders.”
Geely Group has experienced rapid growth in recent years through acquisitions of various brands, including Volvo Cars, Polestar, Proton, Lotus, LEVC (London black cabs), as well as Geely, Zeekr, and Lynk & Co.
Reuters reported that under the Geely Group restructuring, Zeekr, a NYSE-listed company, will lead innovation in electric and connected vehicles, sharing its expertise with other brands such as Lynk and Polestar.
Overall, the integration of Zeekr and Lynk & Co under the Geely Group umbrella signifies a strategic move towards optimizing resources, enhancing collaboration, and strengthening the position of the brands in the rapidly evolving electric vehicle market.
