According to reports from Economic Daily, Geely Group has announced the merger of its two brands, Zeekr and Lynk & Co., in a move aimed at eliminating duplication and reducing costs.
As per the plan, Zeekr will gain control of Lynk & Co. by acquiring 30% of Volvo’s shares and 20% of Geely’s shares. Subsequently, Zeekr will increase its stake to 51% in Lynk & Co. by injecting an additional 1% of the registered capital, while the remaining 49% will be held by Geely.
In reality, the merger plan was approved by Geely back on September 1st, when the company declared a shift in its development strategy from expansion to concentration for resource optimization. This move will witness the integration of resources such as research and development, software, and hardware integration capabilities between the two brands.
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As a result, Volvo will no longer be a shareholder of Lynk & Co. However, the Swedish automaker has stated that it will continue to support Lynk & Co. to bring strategic benefits to both entities.
Geely’s Chairman, Li Shufu, commented, “This integration is a significant step towards executing Geely’s long-term strategic plans. The coordination and integration of brands create greater synergy, benefiting sales, service, and product competitiveness.”
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Currently, both Zeekr and Lynk & Co. are experiencing robust sales growth. In October 2024, Zeekr’s vehicle sales reached 25,049 units, marking a 92% increase compared to the same period last year. During the same month, Lynk & Co. also recorded a 26% growth, selling 31,074 vehicles. Cumulatively, Geely has sold 1.32 million vehicles since the beginning of the year, representing a 26% increase compared to 2023, including 408,000 pure electric vehicles, a 66% surge.
Lynk & Co. entered the Vietnamese market in August 2023, launching two models: the Lynk & Co. 01 and Lynk & Co. 03. Additionally, Zeekr also intends to sell vehicles in the country through its distributor, Tasco.
Thai Son (Tuoitrethudo)
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