Both brands remain but will be more clearly positioned and share more back-end technology.
Chinese premium electric brand Zeekr will take a 51% majority stake in sister brand Lynk & Co in a Geely Group ownership shake up.
Lynk & Co had been owned 50 percent by Geely Auto, 30 percent by Volvo Cars, and 20 percent by Zhejiang Geely Holdings, but after Zeekr’s majority stake the remaining 49 percent will now be held by Geely Auto.
At the same time, Geely Auto will increase its stake in Zeekr to 62.8 percent to enable greater collaboration and technical synergies between all units.
Both Zeekr and Lynk & Co will remain separate brands but will become more clearly defined as individual units with both brands currently competing in similar spaces with the likes of the Zeekr X and Lynk & Co Z20, and the high-end Lynk & Co Z10 up against the Zeekr 001.
The aim will be to position Zeekr as a luxury EV brand in the future with Lynk & Co serving as a premium long range PHEV and EV brand below them.
By working together, the two brands should be able to “accelerate technology synergies…streamline product portfolios, and boost talent development” according to the press release from Geely Holding.
At the same time, Geely’s Geome model range has also been rolled into the Geely Galaxy range, with those products representing mass-market EVs and PHEVs, and the China star range focusing on fuel-powered cars, both petrol and methanol.
Geely Holding Chairman, Li Shufu, said: “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.”
Zeekr stock (NYSE:ZK) dropped from highs of $29.14 to $22.07 in the hours following the announcement.
