In a major restructuring move, Chinese automotive giant Geely Holding is set to transfer control of its Lynk & Co brand to premium electric vehicle maker Zeekr. This strategic decision is part of Geely’s broader plan to streamline operations and reduce costs across its diverse portfolio of nine automotive brands.
Under the deal, Zeekr will acquire a 51% stake in Lynk & Co, valuing the Chinese-Swedish brand at approximately $2.5 billion. The remaining stake will be held by Geely Auto, the group’s primary listed arm.
Geely said it wants Zeekr and Lynk & Co to form a new energy vehicle manufacturing group with combined annual sales of more than a million units. That compares with about 339,000 vehicles for the two brands in 2023.
Zeekr, known for its innovative electric and connected vehicles, will leverage its expertise to drive the development of Lynk & Co’s future models. The two brands will share technology and platforms, particularly in the electric vehicle segment.
Launched in 2016, Lynk & Co currently has nine models and sold roughly 195,600 vehicles in the first nine months, a 40 percent increase over the same period a year ago. By comparison, Zeekr, a three-year-old brand, sold almost 143,000 cars in the first nine months with six models, up 81 percent.
Lynk & Co’s two latest EV models, the Z10 and Z20, share the same architecture used by Zeekr’s cars while its gasoline and hybrid models use different platforms developed by Geely and Volvo Cars.
By consolidating its EV efforts under Zeekr, Geely aims to enhance efficiency, reduce costs, and accelerate the adoption of electric vehicles across its brands.
