Zeekr takes the reins of Lynk & Co

The premium electric vehicle subsidiary of Geely Holding Group, Zeekr, is set to acquire a 51% stake in Lynk & Co. This acquisition, announced on November 14, 2024, will allow Zeekr to take control of the innovative car brand that was initially a joint venture between Geely Auto and Volvo Cars.

Lynk & Co was founded in 2017, and it made a name for itself with its unique, subscription-based approach to car ownership. With Zeekr at the helm, the brand will enter a new phase of growth and development, fully immersed in the growing EV market.

The deal is valued at approximately $2.5 billion and involves a series of transactions. Zeekr will acquire a 20% stake from Geely Holding for $500 million and a 30% stake from Volvo Cars for $770 million. Geely will hold the remaining 49%. Zeekr plans to fund this acquisition through its own cash reserves and external financing.

This acquisition reflects a broader trend within the Geely Holding Group to streamline its operations and focus on the rapidly expanding New Energy Vehicle market. As part of its "Taizhou Declaration," announced on September 1, Geely wants to reduce internal competition and promote resource integration. The acquisition effectively puts all of Geely's EV efforts under the Zeekr brand, leveraging Zeekr's technological expertise and market position.

For Volvo Cars, this divestment is a strategic step away from direct involvement in Lynk & Co, although the company maintains its commitment to operational cooperation in specific markets. Volvo Cars will continue to focus on its own electrification strategy while benefiting from the cash infusion from the sale of its Lynk & Co stake.

The transaction is expected to close in the first quarter of 2025. Following the acquisition, Geely Auto's stake in Zeekr will increase to approximately 62.8%.

It will be interesting to see how this new partnership shapes the future of both brands. Will Lynk & Co's identity survive under Zeekr's leadership? How will this affect development and rollout of new models? These are questions the industry will be watching closely in the coming months and years.

Via