Zeekr takes charge of Lynk in Geely’s $2.5bn reshuffling move

In a strategic shift designed to streamline operations and drive growth, Chinese premium electric vehicle maker Zeekr is set to take control of Lynk & Co, a sister brand owned by Geely and Volvo Cars. The deal will see Zeekr acquire a 51% stake in Lynk, marking the first major move in Geely Holding’s ongoing overhaul. With a value of approximately $2.5 billion, this acquisition is expected to reshape the landscape of Geely’s sprawling automotive empire.

Under the new agreement, Zeekr will purchase Volvo Cars’ 30% stake in Lynk and an additional 20% from Geely Holding, sources familiar with the transaction confirmed. Following this, Zeekr will invest further capital to increase its stake to 51%, while Geely Automobile Holdings, the parent company’s main listed arm, will retain the remaining share. The deal is expected to be finalized by June 2025.

Geely Holding’s decision to restructure comes as part of a broader strategy to enhance efficiency and reduce costs across its multiple brands, which include nine other car and truck labels. “Deep integration” within the group is essential, Geely Chairman Eric Li stated in September, emphasizing the need to minimize product overlap and streamline operations.

Zeekr and Lynk & Co have faced challenges due to overlapping products, which have led to cannibalized sales. Both brands target similar customer segments with comparable offerings, particularly in the electric vehicle market. As Zeekr takes the reins, the plan is for Zeekr to lead innovation in electric and connected vehicles, a shift that will see shared research and technology developments between Zeekr, Lynk, and Polestar, another Geely-owned brand.

As part of the integration process, Lynk’s product team now reports to Zeekr CEO Andy An, with discussions already underway to maximize synergies between the two companies. This includes the potential for sharing technologies and components, which could lead to cost savings and a more unified product strategy across the group.

This strategic reshuffling within Geely is a clear indication that the company is focused on refining its business model to remain competitive in the fast-evolving automotive industry. The integration of Zeekr and Lynk marks a significant step in Geely’s efforts to create a more streamlined, efficient portfolio of brands that can better compete in the global market.

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