Geely Brand Zeekr to Acquire Majority Stake in Lynk & Co

Written by Cláudio Afonso | LinkedIn | X

Zeekr, the premium electric car brand of the China giant Geely Holding Group, announced Thursday it plans to take a 51% controlling stake in Lynk & Co as part of a restructuring aimed at consolidating resources and “accelerating operational synergies.”

Geely announced Thursday that Zeekr will acquire shares in Lynk & Co currently held by Geely Holding and Volvo Cars, with Geely Auto retaining the remaining 49%.

As part of the reorganization, Geely Auto will also raise its stake in Zeekr to approximately 62.8%, aligning the brands for improved integration in areas like hardware and software compatibility, supply chain management, and after-sales support, the company said in a statement.

The transaction will involve Volvo Cars divesting its 30% stake in Lynk & Co for RMB 5.4 billion (approximately SEK 8 billion). Volvo will receive 70% of the payment at closing, with the remaining 30%, plus interest, due a year later. The transaction is expected to complete in the first quarter of 2025.

Although Volvo Cars will no longer hold an equity stake in Lynk & Co, the company said it intends to maintain operational collaborations with the brand “in selected markets where there is a strategic benefit for both companies.”

The company reported on Thursday its third quarter earnings results posting a Vehicle margin decline to 15.7%, drown from 18.1% reported a year ago and up sequentially from 14.2%.

Total revenue rose 30.7% year over year to $2.61 billion while loss from operations decreased 19.3% from the third quarter of last year to $173.3 million.

In October, Zeekr reached a new record for monthly deliveries for the second consecutive month, crossing the 25,000-unit mark. Year over year, deliveries nearly doubled in October—13,077 units in 2023 vs. 25,049 in 2024.