Geely to merge Zeekr and Lynk & Co EV brands

• Chinese automotive giant, Geely, has announced its intention to more closely combine two of its separate newcomer EV brands: Zeekr and Lynk & Co.
• Under the planned changes, Zeekr will obtain a majority stake in Lynk & Co, partly helped by Volvo Cars selling its 30% stake in the brand to Zeekr. This will result in Zeekr having a 51% share in Lynk & Co, while Geely will hold a 49% share.
• The move comes as both of these new EV brands continue their international expansion, with Geely hoping that the move will improve efficiency, customer service, and strengthen each brand.

Geely streamlines its EV operations

The move has been widely reported as a rumour over the past 24 hours, but this confirmation from Geely shows that the brand integration will be going ahead, giving further detail on how exactly that merge will work. Geely says the move will lead to ‘greater global sales volume’ of both Zeekr and Lynk & Co, by streamlining the product portfolio that both brands offer, whilst allowing for expertise sharing between the two.

This integration doesn’t mean that either specific brand will be lost, however, with Geely noting that each brand will maintain ‘clear market segments’. That’s despite the fact that both brands will now have more in common underneath, with the two brands set to have a higher level of software and hardware commonality.

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While not explicitly mentioned, these supply chain efficiencies as a result of the two brands’ integration should lead to cost savings further down the line. That could drive consumer demand for the two brands even further, considering that both already undercut legacy manufacturers on price.

Eric Li, Chairman of Geely Holding, commented:

“This integration is a key measure for Geely Holding 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 allowing our companies to provide greater value and opportunities to both global consumers and shareholders.”