Geely to merge brands – Zeekr to lead development, purchase controlling stake in Lynk & Co

Geely is reportedly working to merge the Lynk & Co and Zeekr brands for a more focused approach towards the new energy vehicle market, according to sources cited by Economic Daily.

The planned consolidation aims to reduce internal competition between the group’s brands and cannibalisation of sales, and ultimately improve Geely’s competitiveness.

This consolidation will see Zeekr purchase the 30% controlling stake in Lynk & Co held by Volvo and a 20% stake from Geely Holding, according to sources cited by Reuters. This will be followed by a capital injection for Zeekr to increase its stake to 51%, while Geely Automobile Holdings will hold the remaining share.

According to sources cited by Reuters, Zeekr has been valued at around US$2.5 billion (RM11.2 billion), and the deal is expected to be complete by June next year. Zeekr is also expected to lead development for EV and connected vehicle technology, and to share its research with group brands Lynk & Co and Polestar, according to another Reuters source.

The latest model from Lynk & Co is the Z20, which is built on the Geely Sustainable Experience Architecture (SEA) platform that also underpins the likes of the Zeekr X, as well as products from other brands within the group such as the Volvo EX30 and the smart #1.

In October 2024, the Geely group sold 226,686 vehicles, or a 28% gain from this month last year; sales of battery electric vehicles gained by 132%, to 78,858 vehicles, reported Car News China. Of the group’s total, Lynk & Co and Zeekr combined accounted for almost 30% of total Geely sales in the first three quarters of 2024.

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