11/14 2024 427
According to Fast Technology on November 14, rumors began circulating last night about a significant restructuring announcement Major adjustments to be announced soon by Geely Auto, with all indications pointing to its two sub-brands, Zeekr and Lynk & Co.
Early this morning, the media outlet 'China Economic Net Auto' revealed shocking news: 'Geely's Zeekr and Lynk & Co will undergo strategic integration, aiming to achieve Zeekr's controlling stake in Lynk & Co. This announcement will be officially made soon. Meanwhile, An Conghui, Chairman of Zeekr Tech, will succeed Shen Ziyu as Chairman of Polestar, seen as a precursor to further integration or synergy between Polestar and Zeekr in the future.'
Both Lynk & Co and Zeekr are core brands of Geely Auto. In 2017, Lynk & Co was jointly established by Geely Auto Group and Volvo Car Group, known for its personalized and youthful products. In just six years, it has achieved sales of 1 million units, making it arguably the most successful youth-oriented Chinese automotive brand.
However, Lynk & Co missed the rapid development phase of electric vehicles, only launching its first pure electric vehicle, the Z10, this year. This model, however, has faced challenges and struggles to compete with Zeekr.
As for Zeekr, its first model, the 001, was launched in 2021. Despite being positioned as a pure electric shooting brake, it became an overnight success, propelling Zeekr to become a representative brand of independent high-end new energy vehicles. Zeekr achieved sales of 100,000 units in just over 500 days and was listed on the New York Stock Exchange within three years, standing out among new forces in the industry.
So why are these two brands undergoing strategic integration? Ultimately, it boils down to 'concentrating efforts on major tasks.'
In September this year, Geely Holding Group officially released the 'Taizhou Declaration,' announcing the company's entry into a new phase of strategic transformation. It clearly stated that the group would focus on its automotive core business and deploy its technological ecosystem to enhance competitiveness through five major initiatives: strategic focus, strategic integration, strategic synergy, strategic prudence, and strategic talent development.
Following the release of the declaration, Geely Auto has already begun adjustments around it. On October 9, Geely officially announced the integration of the Geometry brand into the Yinhe series. Recently, media reports revealed that RADA Auto will also be integrated into Geely Auto Group.
The integration of Zeekr and Lynk & Co holds even greater significance. Both are core businesses of Geely and have made remarkable achievements within the group. If they merge, it will undoubtedly serve as a model for implementing the 'Taizhou Declaration' and will consolidate their strengths for further advancement.