Report: Geely Set To Merge Zeekr and Lynk & Co EV Brands
Reports have surfaced indicating that Chinese automaking firm Geely is set to merge two EV brands under its fold, namely Lynk & Co and Zeekr.
Chinese automaker Geely (Geely Holding Group) has an extensive portfolio of brands, both directly under its fold and through share-holding. However, it seems the firm reckons it’s time to streamline things, evident through reports indicating that it will merge some of its brands.
According to a recent report my Automotive News Europe, Geely’s streamlining efforts will see it merge both its Zeekr and Lynk & Co electric vehicle (EV) brands soon. The report cites a filing by the group’s Zeekr Intelligent Technology Holding Ltd. acquiring a majority stake in Lynk & Co.
The same filing also indicates that the transaction sees the former valuing the latter EV maker at roughly US$2.5 billion (approx. RM11.2 billion). Prior to which, Zeekr Intelligent Technology Holding Ltd. had staged the biggest US market listing by a Chinese-rooted firm in a three-year span too.
More specifically, Zeekr will acquire 30% of Lynk & Co from Volvo at a reported sum of RMB5.4 billion (approx. RM3.34 billion). It will then acquire another 20% from Geely Holding for an additional RMB3.6 billion (approx. RM2.2 billion), adds the firm.
A key driver to this supposed merger stems from the need to curtail cross-competition from within the Geely Group itself.
Following which, Zeekr will proceed to increase its stake up to 51% through a cash injection worth RMB367.3 million (approx. RM227.4 million). Geely Group’s head Li Shufu had also reportedly told staff back in Sept that deep integration was needed to improve efficiency and lower costs.
The move sees Geely prompting both brands to form a new energy vehicle manufacturing group with a combined annual sales of over a million units. For reference, both brands shifted just 339,000 vehicles combined in 2023.
Critically, the merge will curtail some cross-competition within the Geely Group itself, and bolster it to face off against rivals such as BYD.
Written By
Thoriq Azmi
Former DJ turned driver, rider and story-teller. I drive, I ride, and I string words together about it all. [#FuelledByThoriq] IG: https://www.instagram.com/fuelledbythoriq/
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