Zeekr acquires majority stake in Lynk & Co to form merger

Last week, the headlines were focused around the end of merger talks between Honda and Nissan. While we all know both parties didn’t end up merging, a different outcome emerged under Geely’s house of brands.

Zeekr has acquired a controlling stake to integrate Lynk & Co into its business structure, forming the Zeekr Technology Group. This paves the way to maximize the resources of both brands, reduce operating costs, and expand market reach.

Previously, Geely Holdings and Volvo Cars owned 20% and 30% stakes respectively over Lynk & Co. Those have now been acquired by Zeekr and is now holding a 51% share of Lynk & Co, while Ningbo Geely still holds 49% of the shares.

The merger is basically a move to eliminate model overlaps between the two brands, as the new structure sees Zeekr focusing on offering BEVs for the mid-size segment and hybrids for larger cars. On the other hand, Lynk & Co will offer compact BEVs while offering hybrids for the mid-size to large market.

Together, the merger plans to achieve 710,000-unit sales in 2025 – 320,000 of those will come from Zeekr, while 390,000 will come from Lynk & Co. The new holding company also sees Zeekr launching three new models in 2025, while Lynk & Co is set to introduce two new models to its lineup.

The new Zeekr Technology Group will also collaborate on sales channel development, with Lynk & Co leveraging Zeekr’s experience in major cities and Zeekr expanding its reach using Lynk & Co’s network in less developed markets as it plans to operate over 200 stores internationally for 2025.

In the Philippine market, Zeekr and Lynk & Co are distributed by two auto groups. The former is being distributed by the Autohub Group while Lynk & Co is under United Asia Automotive Group, Inc. (UAAGI). With that being the case, let’s wait and see if the merger will have an effect on the operations of both distributors.