As indicated last November, Geely has finally re-organised its electric vehicle brands with the consolidation of Zeekr and Lynk & Co. In a statement, Zeekr – which now holds a controlling 51% stake in Lynk & Co, with Geely holding on to the remaining 49% – said that the formation of the Zeekr Technology Group will enable it and Lynk & Co to generate greater synergies that will benefit sales, enterprise value and create more value for both users and investors.
Aside from a better management of resources, the integration will also bring about cost reduction benefits, as R&D expenses are expected to decrease by 10%-20% and supply chain costs are anticipated to be reduced by 5%-8% following the consolidation. Additionally, expenses for support and service departments are also set to be lowered by 10%-20%.
There will of course be a high element of unification following the move. Apart from Europe, both brands will gradually integrate their office operations to create a cohesive international business team and a unified sales company. Specific market operations will follow a “one market, one strategy” approach, tailoring rules and strategies to align with local consumer preferences and market characteristics.
However, as Zeekr pointed out, both brands will continue to have their own identity, with Zeekr being positioned as a global luxury technology brand focusing on mid to large sized vehicles, with an emphasis on pure electric models for its mid-sized offerings and hybrids for its larger models.
Previously, it was reported that Zeekr is also expected to lead development for EV and connected vehicle technology, sharing its research with group brands. As for Lynk & Co, it will be positioned as a global premium new energy brand specialising in small all-electric and mid-sized hybrid vehicles.
Meanwhile, the product portfolio will be increased and will cover a broader range of market segments, with the company stating that the price range of the integrated group’s offerings is set to expand to cover the RMB 150,000 to RMB 800,000 (RM91,700 to RM489,000) spectrum, encompassing nearly 60% of the passenger vehicle market.
As for new models this year, there will be five, with three coming from Zeekr and two from Lynk & Co. These will include the Zeekr 007 GT and the recently announced Lynk & Co 900 full-sized SUV. This year will also see the Zeekr 7X electric SUV and Lynk & Co 08 EM-P plug-in hybrid SUV make their way to overseas markets.
As for global sales targets, the new group aims to achieve sales of 710,000 units this year, with Zeekr’s target being 320,000 units and Lynk & Co, 390,000 units.
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