Zeekr Takes Control of Lynk & Co In Geely Rehash

Late last week, Geely Auto declared that its sibling company Lynk & Co. would be taken over by its luxury electric brand Zeekr. According to reports, the significant reform is the first of several planned reorganisations that Geely plans to implement as part of its continuous efforts to simplify its extensive automotive empire. And Malaysian motorists can expect to see these cars in showrooms as early as late next year.

According to a statement from the company, the merger will “increase talent development, streamline product portfolios, and accelerate technology synergies between the two brands, ultimately leading to greater global sales volume.”

Zeekr will purchase all 30% of Volvo Cars‘ interest in Lynk & Co. as part of the restructuring, along with an additional 20% from Geely Auto. Zeekr will bring its stake up to 51% via a capital infusion, giving it a controlling ownership of Lynk, while the remaining 49% will remain the property of Geely Auto.

The purchase is expected to finalise by June 2025, and the Chinese-Swedish brand is valued at about CNY18 billion (about RM11 billion), according to Reuters.

Zeekr to share R&D with Lynk and Polestar

After the reorganisation, Zeekr is expected to lead the group’s research and development of connected and electric vehicles, sharing that research with Lynk & Co. and Polestar, among others.

According to contacts familiar with the situation, as of last week, the product team at Lynk & Co. began reporting directly to Andy An, the CEO of Zeekr, and talks on parts and technology exchange between the two companies had already begun.

Geely Chairman Li Shifu first hinted at the reorganisation plan in September of this year with the business wanting to reduce redundancies and increase efficiency across all of its brands.

In a conference call with analysts after the news, Andy An stated that resource sharing between the two brands would improve utilisation of its production capacity, lower the bill for materials by 5-8%, and reduce R&D expenditures by 10-20%.

Although there are currently no intentions to incorporate Lynk & Co. into the Zeekr brand, the combination will enable the more recent Zeekr brand to sell its vehicles in areas where Lynk & Co. already has a sales network.

CARLIST THOUGHTS

The Z10 and Z20, Lynk & Co.’s first fully electric models, were just released and they already have the same EV design (and style) as Zeekr’s vehicles. Although it’s uncertain if they will survive into the future, the brand also provides ICE and hybrid versions that are based on various platforms created by Geely and Volvo Cars and will appear in Malaysian showrooms in time.

More Articles for You

Porsche 911 GT3 Smashes Nurburgring Lap Record

Porsche has just smashed another Nürburgring record, this time winning the title of fastest production car to lap the Green …

New Nissan Leaf Delivers Competitive Range Of Over 300 Miles

When the Leaf debuted in 2010, it took home the North American and World Car of the Year awards. That’s …

New Leapmotor B10 And C10 To Debut In Malaysia

According to local media reports, Stellantis Malaysia intends to debut several Leapmotor models in Malaysia shortly, including the B10 and …

Kia Is Recognized As Newsweek’s ‘Sustainability Disruptor Of The Year’ 

Plastic pollution on land and sea is a major environmental issue. Microplastics have been found in every ocean, even in …

BYD Sealion 7 Captures 5-Star Rating On Euro NCAP

BYD’s Atto 3 electric vehicle may have received an unsatisfactory safety rating last year for its driver-assistance tests, but this …

Honda Launches First EV in Malaysia And Its Called e:N1

Following its teaser preview at last year’s Kuala Lumpur International Mobility Show, Honda’s first-ever electric vehicle—the e:N1—has just landed in …