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Volvo to Sell 30% Stake in Lynk & Co to Zeekr, Reshaping Ownership Structure

Mirror Insight
November 14, 2024

Volvo Stake Sale, Lynk & Co Ownership Change, Geely Subsidiary Zeekr

Volvo Cars has announced its decision to sell its entire 30% stake in Lynk & Co to fellow Geely subsidiary Zeekr for approximately USD 745.53 million (RMB 5.4 billion, or Rs 6,296.26 crore). The transaction is expected to close in the first quarter of 2025, pending shareholder and regulatory approvals. This sale will see Lynk & Co’s ownership structure change, with Zeekr acquiring a majority 51% stake in the brand.

Volvo to Retain Operational Collaboration Despite Stake Sale

Lynk & Co Collaboration, Volvo Geely Partnership, Volvo and Lynk & Co Future

Although Volvo is selling its stake, it will continue operational collaboration with Lynk & Co in select markets where there is a strategic advantage for both parties. This ensures that Volvo maintains a role in Lynk & Co’s future, despite no longer holding a significant ownership share.

Zeekr and Geely: Expanding Influence in the EV Market

Zeekr Majority Stake, Geely EV Strategy, Zeekr Volvo Collaboration

Following this move, Zeekr will hold a majority 51% stake in Lynk & Co, while the remaining 49% will be held by Geely. Additionally, Geely will increase its stake in Zeekr to 62.8%, strengthening its position in the rapidly growing electric vehicle (EV) market.

Impact on Lynk & Co’s Ownership Structure

Lynk & Co Stake Sale, Geely Ownership, Volvo Disinvestment

Since Lynk & Co was founded in 2017 as a joint venture between Volvo, Geely, and Zeekr, the brand’s ownership was initially split with Geely holding 50%, Volvo 30%, and Zeekr 20%. The upcoming transaction will shift this balance, giving Zeekr control of the brand’s majority share.

Conclusion: Strategic Shifts in the EV Landscape

Volvo Geely Strategy, EV Market Changes, Lynk & Co Future Plans

While the sale signifies a strategic shift in Volvo’s involvement with Lynk & Co, the collaboration with Geely and Zeekr remains strong. As the EV market continues to evolve, these changes will likely have a lasting impact on the brands’ future operations and market presence.

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