Zeekr and Lynk & Co will undergo a strategic integration with the goal of achieving Zeekr's controlling stake in Lynk & Co, according to a Chinese state-run media report.
Chinese auto giant Geely will reportedly integrate Lynk & Co under the Zeekr (NYSE: ZK) brand to focus its resources on the rapidly changing new energy vehicle (NEV) market.
Zeekr and Lynk & Co will be strategically integrated with the goal of achieving Zeekr's controlling stake in Lynk & Co, the state-run Economic Daily cited sources as saying in a report today, adding that a formal announcement will be made in the near future.
Geely announced the transition from strategic expansion to strategic focus on September 1, 2024, when it issued the Taizhou Declaration. Since then, the integration of Geely's businesses is accelerating and has now touched the core businesses, the report noted.
Born in 2017 as a joint venture between Geely Auto and Volvo Cars, Lynk & Co was one of the most successful young Chinese car brands, reaching one million sales in six years.
But Lynk & Co missed out on the rapid growth of electric vehicles (EVs), launching its own first battery electric vehicle (BEV) model only this year, and with rivals that include Zeekr models, the report noted.
Zeekr was founded in March 2021 and released its first model, the Zeekr 001, in April 2021, a rebranding of the model previously known as the Lynk & Co Zero, as previously reported by CnEVPost.
Zeekr surpassed 100,000 units sold in just over 500 days and took three years to achieve a stock listing on the New York Stock Exchange, the Economic Daily report noted.
Zeekr and Lynk & Co have taken over the Geely mission of upward brand development and technological transformation at different stages, the report said, adding, however, that China's automotive industry is currently undergoing a period of profound change, and in a highly competitive environment, companies need to have the ability to make timely adjustments.
The integration of the two brands does not stem from operational pressures, but is more about building up momentum and preparing to focus on bigger challenges, according to the report.
In addition to the consolidation of Zeekr and Lynk & Co, Polestar (NASDAQ: PSNY) may also be facing consolidation.
Zeekr chairman Andy An will be taking over the role of Polestar's chairman from Shen Ziyu, a sign of further integration of Polestar with Zeekr in the future, according to the report in the Economic Daily.
In the January-October period, Zeekr delivered 167,922 vehicles, up 82.32 percent year-on-year. The company is targeting to deliver around 230,000 vehicles for the whole of this year.
Lynk & Co launched its first BEV model, the Z10 sedan, on September 5, built on the same platform as the Zeekr 001.
On September 13, Lynk & Co filed for a second BEV in China, the Z20, which looks like the Zeekr X. The model went on sale in Europe last month.
Lynk & Co launches 1st BEV model Z10 in China with starting price of $28,600
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