Geely It is one of the largest conglomerates in the motor industry today. The Chinese giant controls several car brands, some as notable as Volvo or Lotus. Now it wants to reorganize its product portfolio and is going to make a significant move. It consists of join Lynk & Co and Zeekr in the same company so that they can join forces and strengthen sales of their electric cars. It makes some sense because currently models of both share platforms and components.
Under Geely, Zeekr is set to acquire a majority stake in Lynk & Co. worth 18.33 billion yuan (2,400 million euros). If we go into the details of the operation, Zeekr buys 30% of the shares from Volvo and 20% from Geely, in addition to making a cash injection of 367.3 million yuan (48.08 million euros), for become the majority partner of Lynk & Co by owning 51% of the shares. That opens up new possibilities for brands.
There was another time when Geely dedicated itself to acquiring manufacturers to expand its product portfolio. Now the goal is improve efficiency and reduce costs as a group. After observing that Zeekr and Lynk & Co could have internal competition problems and redundant investments, they have decided to merge them directly. The purpose is that they can become a brand that reach one million cars sold per yearexceeding the 339,000 units they obtained separately in 2023.
Both have overlaps with similar products and prices, in fact there are cars that are carbon copies. It is estimated that the union would reduce R&D costs by 10-20%also reducing investment in components. On the other hand, Lynk & Co’s sales network (which has been in place since 2016) would be used to get Zeekr off the ground. All under a framework of guarantees such as Geely, which increased revenue by 92% in the last quarter thanks to the fact that it is selling 32% more than the previous year.
