China’s Geely announced on Thursday that its premium electric vehicle (EV) brand, Zeekr, will take control of its sister brand Lynk & Co. This marks the first major restructuring move in Geely’s planned overhaul of its extensive automotive portfolio.
Geely Holding, which owns both Zeekr and Lynk alongside ten other automotive brands, is shifting from a strategy of aggressive acquisitions to a focus on streamlining operations and cutting costs.
Group Chairman Eric Li stated in September that deeper integration across the brands is essential to improve efficiency and lower expenses. He emphasized that each brand must clearly define its model positioning to avoid overlap.
Geely intends for Zeekr and Lynk to establish a new energy vehicle (NEV) manufacturing group, targeting annual combined sales of over one million units—up from around 339,000 in 2023.
“If we don’t integrate Zeekr and Lynk, we’ll face challenges like internal competition and redundant R&D and sales investments,” Geely Auto Holdings CEO Gui Shengyue told analysts. “This would hinder Geely’s competitiveness.”
As part of the restructuring, Zeekr will acquire a 30% stake in Lynk from Volvo Cars and a 20% stake from Geely Holding, ultimately raising its ownership to 51% through a capital injection. Geely Auto, the group’s primary listed entity, will retain the remaining shares. Lynk’s valuation stands at around 18 billion yuan ($2.5 billion), with the transaction expected to conclude by June of next year.
Sources indicate Zeekr is set to lead innovation for EVs and connected vehicles within Geely’s group, sharing technological advances with Lynk and Polestar. Last week, Lynk’s product team began reporting to Zeekr’s CEO Andy An, with plans underway to increase shared technologies and components.
According to An, shared resources are expected to reduce R&D costs by 10%–20% and lower material expenses by 5%–8% while boosting production efficiency. This collaboration would also enable Zeekr brands to expand into lower-tier cities through Lynk’s established sales network.
Lynk’s latest EVs, the Z10 and Z20, utilize the same architecture as Zeekr’s vehicles, though its gasoline and hybrid models are built on platforms developed by Geely and Volvo. Since its 2016 launch, Lynk has sold around 195,600 vehicles this year, a 40% increase year-over-year. In comparison, Zeekr, established just three years ago, sold almost 143,000 vehicles from January to September, marking an 81% increase.
Since listing in New York in May, Zeekr shares have risen nearly 40%, giving the company a market value of $7.3 billion.
