Zeekr takes control of Lynk & Co through the newly-formed of the Zeekr Group.
A little while back in 2017, Geely and its subsidiary Volvo decided to launch a new global car company that focused on producing hip and trendy electrified vehicles. This venture was to be Lynk & Co.
Then seemingly out of the blue in 2021, Geely themselves had decided to debut yet another brand. And while Zeekr was set to be a premium fully-electric automaker, the fact that its debut model, the 001, had all the design hallmarks of a Lynk & Co did leave many wondering as to what will happen to Lynk & Co?
Well, as of yesterday, it seems that both companies will soon finally become one, at least in the back end anyway. Such is as Zeekr has since recently completed its acquisition Lynk & Co, with both brands to now be consolidated under the newly-formed Zeekr Group.
Zeekr has since gained a controlling 51% majority stake in Lynk & Co, with Geely holding on to the remaining 49%. At the same time however, Geely is said to be planning to increase its stake in the latter to around 62.8%, which in turn sees for the parent company of both subsidiaries to still retain overall control.
In the official statement, Zeekr said that this merger will enable it and Lynk & Co to generate greater synergies that will benefit sales, enterprise value and create more value for both its customers and investors. More interestingly too is that the Zeekr Group will apparently be ‘developing its own software systems, e-powertrain and electric vehicle supply chain’, in the aim of creating ‘a fully integrated user ecosystem with innovation as a standard.’
Apart from Europe, both brands will gradually integrate their office operations to establish a cohesive international business team and a unified sales company. The group is further implementing a “one market, one strategy” approach to international expansion, with operations tailored to local consumer preferences and market characteristics.
The integration of both companies into one entity is expected to generate significant cost efficiencies across multiple areas of operations, with R&D expenses are expected to decrease by 10% to 20% and supply chain costs are anticipated to be reduced by 5% to 8% following the consolidation. Expenses for support and service departments are also set to be lowered by 10% to 20%.
It has to be reiterated here though that while the back-end of these companies are consolidated, both brands will nevertheless maintain their independent operations and unique market positioning. Zeekr is set to become the more premium of the two marques, with it offering mid-sized EVs and full-sized hybrid vehicles. Lynk & Co on the other hand will specialise in small-to-mid-sized vehicles, focusing on small pure electric cars and mid-sized hybrids.
This dual-brand approach is said to enable the Zeekr Group to cover a price range from RMB 150,000 (RM 91,000) to RMB 800,000 (RM 490,000), and addresses nearly 60% of the passenger vehicle market with complementary product offerings across both PHEV and BEV segments. The Zeekr Group has further set an ambitious sales target of 710,000 vehicle by 2026, with Zeekr contributing 320,000 units and Lynk & Co adding 390,000 units.
As for what will be supporting this substantial sales growth, the Lynk & Co 08 EM-P and Zeekr’s first 800 V global car, the 7X will launch overseas. These upcoming international models will be further supplemented too by an expansion to over 200 overseas stores, with said outlets to predominantly be situated across Europe, Middle East and East Asia.
Finally on a more local level meanwhile, this integration of Lynk & Co into Zeekr might finally make good on a promise made by Geely all the way back in 2021 to debut the Lynk & Co brand locally by 2025. Zeekr previously made its Malaysian debut late last year, with its current product portfolio over here consisting of the Zeekr X all-electric compact crossover and the Zeekr 009 all-electric premium MPV.
PRESS RELEASE: Zeekr Group, headquartered in Zhejiang, China, is the world’s leading premium new energy vehicle group from Geely Holding Group. With two brands, Lynk & Co and Zeekr, Zeekr Group aims to create a fully integrated user ecosystem with innovation as a standard. Utilizing its state-of-the-art facilities and world-class expertise, Zeekr Group is developing its own software systems, e-powertrain and electric vehicle supply chain. Zeekr’s values are equality, diversity, and sustainability. Its ambition is to become a true global new energy mobility solution provider.
Group Level Strategy
1. Goal of the Group
The goal will be to deepen collaboration, establish a premium new energy vehicle group, deliver unique value experiences to consumers by offering BEV, ICE, and PHEV, to millions global users by 2026.
Zeekr Group aims to achieve sales of 710,000 units, Zeekr 320,000, Lynk & Co 390,000 ,and operating over 200 overseas stores, aspiring to become a global leader in premium new energy vehicles.
2. Group Competiveness
The integration will enable Zeekr and Lynk & Co to generate greater synergies that benefit sales, enterprise value, and create more value for global users and investors.
Cost reduction: After integration, R&D expenses are expected to decrease by 10%-20%, supply chain costs by 5%-8%, production capacity utilisation will increase by 3%-5%, and expenses for support and service departments will be reduced by 10%-20%.
Product complementarity: Zeekr Group will achieve a complementary product lineup in plug-in hybrid (PHEV) and pure electric (BEV) markets, covering a broader range of market segments. The price range will expand to RMB 150,000–800,000, encompassing nearly 60% of the passenger vehicle market.
3. Unique Brand and Product Positioning
Zeekr and Lynk & Co will maintain their independent operation, as well as brands and products, to provide unique experiences to their users.
Brand:
- Zeekr: Positioned as a global luxury technology brand with a focus on luxury, performance, and technology.
- Lynk & Co: Positioned as a global premium new energy brand with a focus on being trendy, sporty, and personal.
Product:
- Zeekr: Focuses on mid-to-large-sized vehicles. For mid-sized cars, the emphasis is on pure electric models, while large vehicles focus on hybrids.
- Lynk & Co: Specializes in small-to-mid-sized vehicles. In the pure electric category, Lynk & Co focuses on small cars, while hybrids target mid-sized vehicles.
Global Operations Post-Integration
1. Integrated Operations:
Zeekr and Lynk & Co will gradually integrate in office operations. Apart from the European team, the integration of Zeekr and Lynk & Co will create a unified, professional, diverse, and cohesive international business team and will enhance global channel collaboration by establishing a unified sales company.
2. Market-Specific Operation
After the integration, specific market operations will follow a “one market, one strategy” approach, tailoring rules and strategies to align with local consumer preferences and market characteristics.
Product Lineup
After the integration, the product layout of the two brands will be expanded.
In 2025, Lynk & Co 08 EM-P (plug-in hybrid SUV) and Zeekr’s first “800V global car,” Zeekr 7X (premium electric five-seater SUV), will launch overseas.
Current Lineup of Zeekr (all BEV)
- Zeekr 001/001 FR (2021–present), premium shooting brake
- Zeekr 007 (2023–present), luxury sedan
- Zeekr 009/009 Grand (2023–present,RHD), luxury MPV
- Zeekr X (2023–present,RHD), premium urban SUV
- Zeekr 7X (2024–present), premium five-seater SUV
- Zeekr Mix (2024–present), all-scenario super cabin
- Zeekr 007 GT (upcoming), shooting brake
Current Lineup of Lynk & Co (ICE, HEV, PHEV, and BEV)
- Lynk & Co 01 (2017–present), compact SUV
- Lynk & Co 03 (2018–present), compact sedan
- Lynk & Co 05 (2019–present), compact coupe SUV
- Lynk & Co 06 (2020–present), subcompact SUV
- Lynk & Co 07 (2024–present), mid-size sedan
- Lynk & Co 08 (2023–present), mid-size SUV
- Lynk & Co 09 (2021–present), mid-size SUV
- Lynk & Co Z10 (2024–present), full-size sedan, BEV
- Lynk & Co Z20 (2024–present), compact SUV, BEV
- Lynk & Co 900 (upcoming), full-size SUV
