Zeekr Takes Charge of Lynk & Co as Geely Holding Restructures EV Market in China
Significant Restructuring in the EV Market
Zeekr electric vehicles, a prominent player in the EV market in China, is set to take control of Lynk & Co, a sister brand owned by Geely Holding and Volvo Cars. This strategic move is part of a larger automotive restructuring undertaken by Geely Holding to streamline operations and slash costs.
Details of the Acquisition
Under the new agreement, Zeekr is expected to purchase Volvo Cars' entire 30% stake in Lynk along with a 20% stake from Geely Holding. The deal, which values Lynk at around 18 billion yuan (USD 2.5 billion), enables Zeekr to increase its ownership to 51% following a capital injection.
Impact on Vehicle Sales
Both Zeekr and Lynk have experienced overlapping product offerings, often cannibalizing each other's sales. In the first nine months of the year, Lynk sold about 195,600 vehicles, marking a 40% increase, while Zeekr’s sales reached approximately 143,000 cars, reflecting an 81% increase. This integration aims to leverage shared insights, improving overall performance in the competitive landscape of electric vehicles.
Future Outlook
Market experts anticipate that under Zeekr's leadership, Lynk will enhance its focus on innovation in electric and connected vehicles, aligning more closely with Zeekr’s technological advancements and research. This restructuring is a crucial step toward establishing a dominant position within the evolving EV market in China.
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