Geely has said that its premium electric Zeekr brand is to take control of its sister Lynk & Co brand in a move that is designed to unlock synergies and reduce costs in China’s increasingly competitive BEV sector.
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Under the restructuring plan, Zeekr will purchase Volvo Cars and Geely stakes in Lynk & Co to hold a controlling 51% stake in the firm. The remaining 49% will continue to be held by a wholly own subsidiary of Geely Automobile Holdings.
At the same time, Geely Auto plans to increase its stake in Zeekr to approximately 62.8%, further supporting the close collaboration of 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, it said.
Geely also said the move includes clearer brand definitions with greater back-end technology synergies, while both brands ‘maintain clear market segments and unique positions globally’.
Eric Li (Li Shufu), Chairman of Geely Holding, said “This integration 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, services, revenue, and product competitiveness allowing our companies to provide greater value and opportunities to both global consumers and shareholders.”
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By GlobalDataGeely Group has grown rapidly in recent years with multiple brands through acquisition including Volvo Cars, Polestar, Proton, Lotus and LEVC (London black cabs) as well as home-grown Geely, Zeekr and Lynk & Co.
Reuters reported that under the Geely Group restructuring, NYSE-listed Zeekr will lead innovation for electric and connected vehicles, sharing that expertise with other brands including Lynk and Polestar.
