After Polestar, Geely decided to improve its control over Lynk & Co, a brand it currently co-owns with Volvo. Volvo and Geely founded Lynk & Co in 2016, launching the first model Lynk & Co 01 in China. In 2021, Lynk & Co started to sell its car in Europe, where they’re always been designed.
In a strategic restructuring aimed at enhancing operational efficiency and cost-effectiveness, Geely will shift Lynk & Co to operate under Zeekr, another of its brands, born from a Lynk & Co concept car in 2021.
Zeekr acquires all Volvo’s stakes
The shift, initially reported by Reuters and confirmed by Volvo itself, entails Zeekr acquiring Volvo’s 30% stake in Lynk & Co for roughly €690 million, along with an additional 20% stake from Geely.
This transaction will grant Zeekr majority control at 51%, supported by a capital increase, while Geely retains a 49% share. The Lynk & Co valuation for this deal is set at approximately 18 billion yuan (around €2.36 billion). Completion of this transaction is expected by the first half of next year. Furthermore, Geely has announced plans to increase its ownership in Zeekr to 62.8%, signaling an effort to integrate its brands more closely and leverage industrial and commercial synergies.
Li has now called on Geely’s management to more clearly define each brand’s market position, aiming to prevent product and pricing overlap, particularly between Zeekr and Lynk & Co. The two brands share foundational elements, starting from design and to Lynk & Co’s new battery-electric vehicles, the Z10 and Z20 (Lynk & Co 02 in Europe), which are built on the same platform as Zeekr models (SEA platform). Meanwhile, Lynk & Co’s hybrid models are developed using Geely and Volvo technology.
How Zeeking is becoming the leading Geely’s brand
Zeekr is set to play a critical role within Geely’s structure, taking the lead in EV innovation and connected vehicle technology. Launched only three years ago, Zeekr has rapidly gained momentum in the EV market, selling 143,000 vehicles in the first nine months of this year, marking an 81% increase from the same period last year with only six models. Lynk & Co, with nine models, saw a 40% increase in sales over the same period, reaching around 195,000 units sold.
Zeekr’s progress has attracted global attention as it listed on the New York Stock Exchange in May. Since its IPO, Zeekr’s stock has risen nearly 40%, boosting its market capitalization to $7.3 billion. Zeekr’s market success highlights the demand for its EV offerings and provides Geely with both resources and a solid foundation to further develop and expand its electric mobility solutions.
