Confused about the difference between Zeekr and Lynk & Co? Well, don’t worry. It’s going to be simpler from now on as parent company Geely will integrate these two brands aimed at eliminating duplication and saving costs.
The move will see the two brands pool resources such as research and development, software, and hardware capabilities.
Zeekr will effectively take control of Lynk & Co by purchasing Volvo Cars’ 30 percent stake and a 20 percent stake from Geely. Zeekr will then up its stake to 51 percent in Lynk & Co with a capital injection. The remaining 49 percent will be held by Geely.
The deal will see Volvo fully exit from Lynk & Co as a shareholder, but it will continue to focus on operational collaborations with Lynk & Co in selected markets where there is a strategic benefit for both companies, Volvo Cars said in a statement.
Geely Chairman Li Shufu said in a statement on Nov. 14: “This integration is a key measure for Geely to implement its long-term strategic plans. The coordination and integration of our brands supports their sustainable operations and generates greater synergies that benefit sales, services, revenue, and product competitiveness.”
Currently, Zeekr and Lynk & Co have some overlap with similar products and pricing, cannibalizing each other’s sales.
Under the new structure, Zeekr will lead innovation when it comes to electric and connected vehicles, sharing that research with Lynk & Co and Polestar.
Management of both car brands will largely remain in place, although Zeekr CEO Andy An will lead the transition and Lynk & Co executives will report to him.
Good move by Geely Group
ReplyDeleteLynk and Co is the premium version of Geely while Zeekr is the luxury EV brand subsidiary of Geely
Oh no! Salespeople of Geely always name drop Volvo to close the deal. They better change the spiel soon.
ReplyDeleteVolvo used to have a solid reputation for making quality and safe cars but now they sell overpriced yet unreliable vehicles just like most European makes.
DeleteWhat happens then to the distribution rights of each brand here in the PH. Zeekr is under AutoHub and Lynk & Co with UAAGI. There is no issue though if there is no merging of brands for the 2 subs of Geely.
ReplyDeleteGood move by Volvo to get rid of Geely.
ReplyDelete