Electric car brand Zeekr takes control of hybrid Lynk & Co

Chinese car giant Geely has acquired a larger controlling stake in its electric vehicle (EV) subsidiary Zeekr, which now owns a majority stake in hybrid vehicle specialist Lynk & Co.

Geely Group currently owns nearly a dozen car brands, including the Geely Automobile brand of the same name, as well as Zeekr, Lynk & Co, Radar, Proton, Volvo, Polestar, Lotus and Smart.

Previously, Geely owned about 54.5% of Zeekr, but the group’s structure changed and its shareholding ratio rose to 62.8%. Geely said the move will help improve all aspects of the electric vehicle brand’s business.

However, Zeekr has also gained its own interests from this transaction and currently controls 51% of Lynk & Co Automobile’s shares, with the remaining 49% held by Geely Holding.

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After Geely and Volvo established a joint venture in Lynk & Co in 2017, Geely Automobile held 50% of the shares, while Geely Holding and Volvo held 30% and 20% respectively.

“This integration is a key move for Geely Holding to implement its long-term strategic plan,” said Li Jiaxiang, chairman of Geely Holding.

“The alignment and integration of our brands supports their sustainable operations and creates greater synergies that benefit sales, service, revenue and product competitiveness, enabling our companies to deliver greater value to consumers and shareholders around the world and opportunities.”

Li Keqiang’s remarks were not as direct as those of Geely Automobile CEO Gui Shengyue. Reuters Reporting a lack of brand integration is foolish.

“If we don’t integrate (Zeekr and Lynk & Co), we have to face problems like internal competition… and redundant investments in R&D, sales and many other aspects, which is stupid,” he reportedly said. Reuters.

“If we don’t do this, Geely’s overall competitiveness will certainly not improve.”

While Geely has a strong presence in Australia as one of the most experienced Chinese carmakers through its Volvo, Polestar and Lotus units, as well as the recently launched Zeekr and Smart, its namesake brand has yet to break into the local market.

That will change at the end of this year, when Geely’s EX5 mid-size electric SUV will be its first product launched to local buyers.

Lynk & Co, meanwhile, has yet to provide any further updates on its Australian launch, despite its dedicated focus on hybrid vehicles as demand is growing at a faster rate than electric vehicles (EVs).

In the “Smart Geely 2025 Strategy” roadmap released in 2021, Geely outlined its goal of bringing the Lynk & Co brand into Australia by 2025.

“Lynk & Co will expand its global presence by entering places such as Russia, Malaysia, Australia and New Zealand,” the company said in a press release.

If not in Australian showrooms, Lynk & Co cars are also present on Australian soil, such as its 03 sedan participating in the local TCR Australian Championship.

MORE: Which Chinese car brands will be coming to Australia in 2024 and 2025?