Geely is reportedly working to merge the Lynk & Co and Zeekr manufacturers for a extra targeted strategy in direction of the brand new power car market, in response to sources cited by Financial Each day.
The deliberate consolidation goals to cut back inside competitors between the group’s manufacturers and cannibalisation of gross sales, and in the end 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 response to sources cited by Reuters. This will likely be adopted by a capital injection for Zeekr to extend its stake to 51%, whereas Geely Vehicle Holdings will maintain the remaining share.
In accordance 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 yr. Zeekr can be anticipated to guide improvement for EV and related car know-how, and to share its analysis with group manufacturers Lynk & Co and Polestar, in response to one other Reuters supply.
The most recent 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 inside the group such because the Volvo EX30 and the sensible #1.
In October 2024, the Geely group bought 226,686 autos, or a 28% achieve from this month final yr; 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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