Zeekr and Lynk & Co complete equity delivery, Volvo says goodbye to Lynk & Co completely

【PCauto】Recently, Zeekr and Geely announced the successful completion of Zeekr's acquisition and capital injection into Lynk & Co, with Zeekr now holding a 51% stake in the company, while Geely Auto retains a 49% interest. The Zeekr Technology Group was officially established on February 14, marking a mere three months since the strategic integration was announced on November 14, 2024, and the equity transfer has now been finalized.

In this shake-up, Volvo has completely divested its shares in Lynk & Co. Previously, Lynk & Co was jointly owned by Geely and Volvo, with the latter holding a 30% stake. Now, Volvo has completely exited as a shareholder.

Industry insiders have been speculating about Volvo's decision. Some believe it’s tied to Lynk & Co's performance. In 2023, Lynk & Co reported a loss of 1.1 billion yuan, while Volvo itself is under financial pressure due to its electric transformation. By selling its 30% stake, Volvo secured 5.4 billion yuan, easing some financial strain and boosting its stock price. Others think that in the new energy era, Volvo's traditional fuel vehicle advantages are fading, and they need Geely's support for electric technology and funding. Exiting Lynk & Co might help Volvo focus more on its own electric transition.

Looking at market performance, Volvo's electric vehicles face tough competition in Europe, sell fewer than 300 units monthly in China, and suffer from tariffs in the US. Sales of pure electric models are declining, while plug-in hybrids sell around 3,000 units per month. Profit margins are slim due to low premiums on main models and limited sales of high-priced models in China. This led to a 6.6% year-on-year drop in third-quarter operating profit and a 30.5% quarter-on-quarter decline. Net sales fell by 12%, and adjusted operating profit dropped by 26.92%. Given these challenges, Volvo even lowered its 2030 all-electric target. Exiting Lynk & Co could be seen as a strategic move to free up resources for its own transformation.

Zeekr Technology Group, new group structure, and ambitious annual sales targets of 710,000

Following the establishment of Zeekr Technology Group, the organization will pursue a dual-brand strategy consisting of "Zeekr Auto + Lynk & Co Auto," leveraging a robust product line matrix for operation, including the complete integration of manufacturing systems, supply chains, and overseas organizations, which will undergo significant restructuring. The group also aims to harness artificial intelligence to develop a more competitive integrated platform.

According to information, Zeekr Technology Group has set an aggressive objective for 2025, aspiring to release five new models, achieving annual sales of 710,000 units—a 40% year-on-year increase. Lynk & Co targets sales of 390,000 units, while Zeekr aims for 320,000 units. To achieve these goals, the company will prioritize ramping up product research and development, alongside initiating internal management reforms across four key areas: manufacturing, user operations, intelligence, and overall operational efficiency to enhance market competitiveness. Reflecting on 2024, Zeekr delivered 222,000 vehicles, marking an impressive 87% year-on-year increase, while Lynk & Co recorded total sales of 285,400 vehicles, signifying a nearly 30% rise. Both brands have demonstrated strong market performances, setting a solid foundation for Zeekr Technology Group.

Zeekr's new vehicle plans have been revealed, bringing a high-end intelligent SUV to the market

For 2025, Zeekr’s vehicle plans are particularly noteworthy, with three new models slated for launch in the second, third, and fourth quarters. The most eagerly anticipated model features self-developed L3-level autonomous driving technology, which will be unveiled at the Shanghai Auto Show and is expected to commence mass production by the end of the year. This new model represents a significant advancement for Zeekr in autonomous driving, enhancing the intelligent driving experience of forthcoming vehicles.

In the SUV segment, Zeekr plans to introduce two large SUVs under the codenames "DX" and "EX," available in both five-seat and six-seat configurations. The EX series is positioned as a full-size flagship SUV, with the EX1H featuring Zeekr's "Super Extended" hybrid system, while the EX1E will be the pure electric variant set for official launch in the third quarter. The series adopts the design language of the 009 family, measuring over 5.2 meters in length and equipped with a front and rear four-motor drive alongside electro-hydraulic pump active suspension. The hybrid version also includes a dedicated 2.0T extended-range engine and supports direct drive mode. Moreover, it will debut the new Zeekr EEA 4.0 central integrated electronic and electrical architecture along with the Nvidia Thor-U intelligent driving domain controller, expected to be priced between 500,000 to 600,000 yuan, targeting competitive offerings from local brands such as Lixiang Automobile and AITO. The DX series will be slightly smaller with comparable power configurations, potentially integrating a three-motor system and is scheduled for a fourth-quarter launch, with an anticipated price range of 300,000 to 500,000 yuan.

In the first half of the year, Zeekr will also unveil its second shooting brake model, the 007 GT, which aims to replace the 001 as the primary sales powerhouse. The 007 GT will feature a familial design language with light curtains, an upgraded interior, and will retain similar intelligent cockpit, intelligent driving, and three-electric power systems found in the current 007 and 7X, while integrating single-chamber air suspension (most likely standard in the top configuration of the four-wheel drive variant, with other versions offered as optional upgrades).

Lynk & Co has a clear development direction, focusing on smart driving and hybrid technology

Lynk & Co's strategic planning for intelligent driving and hybrid technology involves transitioning to an "end-to-end" technology solution to achieve urban no-map navigation on demand (NOA, Navigate on Autopilot).

In terms of hybrid systems, Lynk & Co champions a three-gear direct hybrid transmission (DHT) architecture designed to create a high-end, enjoyable driving experience across various scenarios. Its EM-P hybrid system boasts a comprehensive range exceeding 1,000 kilometers, with models like the Lynk & Co 07 EM-P achieving over 1,400 kilometers and the Lynk & Co 08 EM-P setting a Guinness World Record with an impressive range of 1,813 kilometers. Product strategy aims to launch the world's first mass-production model equipped with Nvidia Thor chips in the second quarter, which will continuously enhance its intelligent capabilities.

Lynk & Co and Zeekr is expanding its efforts in overseas markets, with over 200 stores established worldwide

Beyond China, Lynk & Co and Zeekr plan to establish over 200 stores globally by 2025. In addition to focusing on the European market, both companies will enhance global channel construction collaboration, establishing a unified sales organization.