Geely Merges Zeekr and Lynk & Co to Strengthen EV Portfolio

Abu Dhabi : Geely has consolidated its premium EV brands, Zeekr and Lynk & Co, under Zeekr Technology Group to enhance efficiency, reduce costs, and boost market competitiveness.

• Zeekr now holds a 51% stake in Lynk & Co, with Geely retaining 49%.
• The merger aims to cut R&D costs by 10-20% and supply chain expenses by 5-8%.
• Global sales strategies will unify, except in Europe.
• Zeekr remains a luxury EV brand, while Lynk & Co maintains its unique market positioning.

Geely’s Bold Move to Reshape Its EV Business

Chinese automotive giant Geely has taken a strategic step by merging its premium electric vehicle (EV) brands, Zeekr and Lynk & Co, into a single entity under Zeekr Technology Group. This decision is aimed at improving operational efficiency, reducing costs, and strengthening its position in the highly competitive EV market. The restructuring reflects Geely’s commitment to innovation and global expansion.

New Ownership Structure

As part of the merger, Zeekr now holds a controlling 51% stake in Lynk & Co, while Geely retains 49%. This arrangement allows Zeekr to take a leading role in Lynk & Co’s strategic direction, leveraging its advanced EV technology and expertise. By consolidating these brands, Geely aims to streamline operations, reduce redundancies, and enhance the overall brand value of both entities.

Cost Reduction and Efficiency Gains

One of the primary motivations behind this consolidation is cost optimization. The merger is expected to lower:

• Research and development expenses by 10-20%.
• Supply chain costs by 5-8%.
• Operational redundancies across both brands.

By sharing resources, Zeekr and Lynk & Co can accelerate innovation while maintaining profitability, a crucial factor in the competitive EV landscape.

Global Market Strategy

The newly formed Zeekr Technology Group will unify international business teams and sales strategies across most global markets, except Europe. In Europe, Lynk & Co will continue to operate independently to maintain its unique brand identity and customer base. This dual approach allows Geely to cater to different market dynamics while maximizing growth opportunities.

Distinct Brand Identities

Despite the merger, Zeekr and Lynk & Co will maintain their distinct brand identities and product offerings:

• Zeekr will continue as a global luxury technology brand, focusing on premium mid-to-large-sized electric and hybrid vehicles.
• Lynk & Co will retain its independent market positioning, appealing to younger, urban consumers seeking a balance of performance and affordability.

The Road Ahead

Geely’s decision to merge Zeekr and Lynk & Co marks a significant shift in its EV strategy. By consolidating resources and streamlining operations, the company aims to enhance efficiency, improve profitability, and strengthen its competitive edge in the global EV market. As the demand for electric vehicles continues to grow, this move positions Geely for long-term success in the evolving automotive landscape.