Zeekr takes control of Lynk & Co with 51 per cent stake

Geely Holding Group officially announces new brand synergies.

Photo by: Zeekr

By: Eleonora Lilli

Nov 17, 2024 at 4:25am ET

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Simplify the product range and increase global sales volume. This is why Geely Holding Group begins a new synergy between Zeekr (a brand launched in 2021) and Lynk & Co (a joint venture between Geely and Volvo since 2017).

An official note, released this week, states that the Chinese group will support the intention of its subsidiary Zeekr Intelligent Technology to own a majority stake in Lynk & Co by acquiring shares held by Geely Holding and Volvo Cars.

When the transitions are completed, Zeekr will hold 51 per cent of the shares in Lynk & Co, while the remaining 49 per cent will continue to be held by a wholly-owned subsidiary of Geely Automobile Holdings.

At the same time, Geely Auto plans to increase its stake in Zeekr to about 62.8 per cent, further supporting the close cooperation between the Geely Auto, Lynk & Co, and Zeekr brands, improving industrial synergies, hardware and software commonality, supply chain efficiency, after-sales service, and accelerating the creation of a stronger global group.

A long-term goal

Since its launch about three years ago, the Zeekr brand has become a major player in the electric vehicle market, while Lynk & Co. introduced its first electric vehicle (Z10) only this year. As part of the integration, Lynk & Co. will retain its brand name, but its team and strategy will align more closely with Zeekr, particularly in its finance and procurement functions.

"This integration," said Eric Li, President of Geely Holding, "is a key measure for Geely Holding to implement its long-term strategic plans. The coordination and integration of our brands supports their sustainable operations and generates greater synergies that benefit sales, service, revenue, and product competitiveness, enabling our businesses to deliver greater value and opportunities to both global consumers and shareholders."

Sales figures

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In the first three quarters of 2024, Lynk & Co. and Zeekr together accounted for nearly 30 per cent of Geely's total sales. In October 2024, the Geely Group sold 226,686 vehicles (+28 per cent) and sales of all-electric vehicles grew by 132 per cent to 78,858 units.

Zeekr's market share grew at a steady pace (+92 per cent in October with 25,049 units), while Lynk & Co. sold 31,074 units (+26 per cent).