Geely, the Chinese auto giant, is set to undergo a strategic integration of its brands Zeekr and Lynk & Co, with the aim of Zeekr acquiring a controlling stake in Lynk & Co. This move comes as Geely shifts its focus towards the rapidly evolving new energy vehicle (NEV) market, according to a report from Chinese state-run media.
The integration of Zeekr and Lynk & Co is part of Geely’s overall strategy to consolidate its businesses and streamline its operations. This strategic move was first announced on September 1, 2024, with the issuance of the Taizhou Declaration. The integration process is now reaching the core businesses of the company, as reported by the Economic Daily.
Lynk & Co, established in 2017 as a joint venture between Geely Auto and Volvo Cars, has been a successful young Chinese car brand, reaching one million sales within six years. However, the brand has lagged behind in the electric vehicle (EV) market, only recently launching its first battery electric vehicle (BEV) model. With competitors like Zeekr making strides in the EV sector, the integration with Zeekr could provide Lynk & Co with the necessary resources to compete effectively.
Zeekr, founded in 2021, has quickly gained traction in the market, surpassing 100,000 units sold in just over 500 days. The brand’s rapid growth led to its listing on the New York Stock Exchange within three years of its inception. The integration of Zeekr and Lynk & Co signifies a strategic alignment of their goals and missions, as both brands aim for upward brand development and technological transformation.
The decision to integrate Zeekr and Lynk & Co is not driven by operational pressures but rather by the need to prepare for future challenges and opportunities in the automotive industry. In addition to the consolidation of these two brands, there are also indications that Polestar, another brand under Geely, may undergo a similar integration in the future.
Zeekr’s strong performance in the market, with over 167,000 vehicles delivered in the January-October period, underscores the brand’s potential for growth and expansion. Meanwhile, Lynk & Co’s recent launch of its first BEV model, the Z10 sedan, and the filing for a second BEV model, the Z20, demonstrate the brand’s commitment to the electric vehicle market.
Overall, the integration of Zeekr and Lynk & Co represents a strategic move by Geely to consolidate its resources and focus on the future of the automotive industry. With a shared mission of innovation and adaptation to changing market dynamics, these brands are poised to make significant strides in the evolving NEV market.
