Zeekr, the premium electric vehicle brand under Geely Holding, is set to become the majority shareholder of Lynk & Co, a brand also under the Geely umbrella, as part of a strategic restructuring aimed at enhancing efficiency and reducing costs across Geely’s sprawling automotive portfolio. This move marks the first major shift in Geely’s new business model, which is shifting away from acquisitions to instead optimize and integrate existing resources.
Under the terms of the deal, Zeekr will acquire Volvo Cars’ entire 30% stake in Lynk as well as an additional 20% from Geely Holding, with an additional capital injection planned to raise its stake to 51%, insiders reported. Geely Automobile Holdings, the group’s main publicly traded subsidiary, will retain the remaining shares. The agreement values Lynk at approximately 18 billion yuan, or $2.5 billion, and is expected to finalize by mid-2025.
Volvo Cars has acknowledged discussions about selling its stake in Lynk, though no formal decisions have been made. The transaction aligns with Geely’s broader restructuring strategy, outlined by Geely Chairman Eric Li in September, which calls for clearer product positioning to eliminate overlaps and enhance synergies among Geely’s brands. Zeekr and Lynk have overlapping market segments, which has led to competition between the two brands in certain product categories.
As part of the restructuring, Zeekr is positioned to take on a leadership role in developing and sharing advanced technologies for electric and connected vehicles within the Geely family, benefiting brands like Lynk and Polestar. According to insiders, Lynk's product team began reporting to Zeekr CEO Andy An last week, and discussions are underway to optimize shared technologies and components. Lynk’s latest electric models, the Z10 and Z20, already share Zeekr's platform, while its gasoline and hybrid vehicles use separate platforms developed by Geely and Volvo.
Since its launch in 2016, Lynk has expanded to nine models and sold around 195,600 vehicles in the first nine months of 2024, marking a 40% increase from the previous year. Zeekr, a newer brand introduced three years ago, saw a higher growth rate, with nearly 143,000 units sold in the same period across six models—an 81% increase. Zeekr’s recent listing on the New York Stock Exchange in May has contributed to a 40% rise in its stock price, bringing its market value to $7.3 billion.
