Geely’s Zeekr to take over Lynk & Co

Geely Auto Group wants Zeekr and Lynk & Co to form a new energy vehicle (NEV) manufacturing group with combined annual sales of more than a million vehicles.

Zeekr and Lynk & Co have some overlap and Geely aims to eliminate internal competition and overlap to improve sales, says InsideEVs.

Zeekr will take a 51% stake Lynk & Co and get access to its dealer network and Zeekr will act as Geely’s research, development and innovation leader, sharing its technology with the group’s 12 brands including Polestar, Lotus, Smart and Volvo.

Employees from both companies will answer to Zeekr chief executive Andy An, says InsideEVs.

Reports among overseas media suggest Geely aims to cut research spending by up to 20% through the take over which is also likely to make Zeekr vehicles available through the Lynk & Co dealer network.

“Like many Chinese car brands these days, Zeekr is analysing the possibility of manufacturing cars in Europe to avoid the steep new import tariffs on Chinese EVs,” says InsideEVs, which speculates Geely’s move to reorganise its brands was likely prompted by the ongoing price war between Chinese automakers.