Written by Cláudio Afonso | LinkedIn | X
Chinese carmaker Zeekr said on Friday it has completed its previously announced strategic integration transactions with Geely entities, making Lynk&Co an indirect non-wholly-owned subsidiary of the company.
Last November, the Hangzhou-based manufacturer announced it planned to take a 51% controlling stake in Lynk & Co as part of a restructuring aimed at consolidating resources and “accelerating operational synergies.”
Previously, both brands were part of the Geely Holding Group, which includes several other brands such as Lotus, Smart, Volvo, Polestar, LEVC, Geely Auto, and Proton, among others.
Zeekr acquired shares in Lynk & Co currently held by Geely Holding and Volvo Cars, with Geely Auto retaining the remaining 49%.
As part of the reorganization, Geely Auto will also raise its stake in Zeekr to approximately 62.8%, aligning the brands for improved integration in areas like hardware and software compatibility, supply chain management, and after-sales support, the company said in a statement.
The transaction will involve Volvo Cars divesting its 30% stake in Lynk & Co for RMB 5.4 billion (approximately SEK 8 billion). Volvo will receive 70% of the payment at closing, with the remaining 30%, plus interest, due a year later. The transaction is expected to complete in the first quarter of 2025.
Although Volvo Cars will no longer hold an equity stake in Lynk & Co, the company said late last year it intended to maintain operational collaborations with the brand “in selected markets where there is a strategic benefit for both companies.”
Zeekr Sales
In December, often the best month sales-wise due to the year-end sales push, Zeekr reached a new record with over 27,000 vehicles delivered. In January, sales dropped 5% from a year ago to 11,942 units.
The Hangzhou-based company closed 2024 with 222,123 vehicles delivered, around 7,900 short of its 230,000 target announced a year ago. In 2025, the company is targeting a 44% growth to 320,000 vehicles — a monthly average of 26,660 units.