Geely is reportedly working to merge the Lynk & Co and Zeekr manufacturers for a extra centered method in direction of the brand new vitality car market, in accordance with sources cited by Financial Day by day.
The deliberate consolidation goals to cut back inside competitors between the group’s manufacturers and cannibalisation of gross sales, and finally enhance Geely’s competitiveness.
This consolidation will see Zeekr buy the 30% controlling stake in Lynk & Co held by Volvo and a 20% stake from Geely Holding, in accordance with sources cited by Reuters. This will likely be adopted by a capital injection for Zeekr to extend its stake to 51%, whereas Geely Car Holdings will maintain the remaining share.
In keeping with sources cited by Reuters, Zeekr has been valued at round US$2.5 billion (RM11.2 billion), and the deal is anticipated to be full by June subsequent 12 months. Zeekr can be anticipated to steer improvement for EV and linked car know-how, and to share its analysis with group manufacturers Lynk & Co and Polestar, in accordance with one other Reuters supply.
The newest mannequin from Lynk & Co is the Z20, which is constructed on the Geely Sustainable Expertise Structure (SEA) platform that additionally underpins the likes of the Zeekr X, in addition to merchandise from different manufacturers throughout the group such because the Volvo EX30 and the good #1.
In October 2024, the Geely group offered 226,686 autos, or a 28% achieve from this month final 12 months; gross sales of battery electrical autos gained by 132%, to 78,858 autos, reported Automotive Information China. Of the group’s whole, Lynk & Co and Zeekr mixed accounted for nearly 30% of whole Geely gross sales within the first three quarters of 2024.
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