In a strategic move that has generated significant buzz in the automotive world, Geely's two leading electric vehicle brands, Zeekr and Lynk & Co., have officially announced a merger that represents a transformative "super combination." This fusion is not merely a reshuffling of corporate assets; it symbolizes Geely's ambitious objective to establish itself as a formidable competitor in the luxury electric vehicle market, akin to the German automotive triumvirate known as BBA (Benz, BMW, and Audi).

On February 14, 2023, both Zeekr (ZK.US) and Geely Automobile (0175.HK) made groundbreaking announcements confirming the completion of the acquisition of Lynk & Co. and capital injectionThis monumental step led to the formation of the Zeekr Technology Group, signaling an era of enhanced collaboration and efficiency.

The groundwork for this merger stems from the "Taizhou Declaration," which outlines Geely's strategic vision for evolving in the competitive landscape of the electric vehicle (EV) marketThis past November, Geely Holdings shared their intent to integrate the resources and strengths of Zeekr and Lynk & Co., aiming for a smoother operational synergyWith the finalization of the equity transfer, Zeekr now holds a 51% stake in Lynk & Co., while Geely retains a 49% share, thus establishing Lynk & Co. as a non-wholly owned subsidiary of Zeekr.

The creation of the Zeekr Technology Group clearly indicates a deep integration of both brands, enhancing their competitive stance in a market characterized by fierce rivalry among EV manufacturers.

In addressing the post-merger positioning, CEO An Conghui emphasized that Zeekr and Lynk & Co. will maintain a dual-brand operating modelHowever, he clarified that each brand will have distinct identities and product lines: "Zeekr will focus on premium and cutting-edge technology, while Lynk & Co. will cater to a broader lifestyle brand appeal."

Zeekr positions itself as a "global luxury technology brand," targeting high-end consumers with a price point starting from around 300,000 RMB (approximately $45,000). The brand aims to capture the mid-to-large vehicle market, emphasizing innovations such as pure electric technologies for mid-size cars and hybrid solutions for larger vehicles.

Conversely, Lynk & Co. is identified as a "global high-end electric vehicle brand," appealing to a younger, trendier demographic with a starting price of approximately 200,000 RMB (about $30,000). Its focus is on delivering stylish and sporty attributes, particularly in small electric cars while incorporating hybrid technology into its mid-to-large offerings.

Under this dual-brand strategy, An Conghui also articulated a vision for the new group's internal management structure

Advertisements

The goal is to initiate a comprehensive reform across four key areas: product development collaboration, manufacturing innovation, enhanced user engagement, and breakthroughs in intelligent systems.

The intention behind product collaboration is ambitious—aiming for a 15% increase in overall development efficiency through a sophisticated hybrid organizational structureIn manufacturing, the plan is to create an integrated "large-scale production and quality" management approach, streamlining operations to boost efficiency by over 20% through organizational simplification and flatter management hierarchies.

One of the most intriguing aspects of this merger is the initiative to build a "dual-brand value pyramid" focused on user managementFurthermore, in pursuit of advanced intelligent system capabilities, Zeekr will leverage AI technology to enhance operational efficiency by at least 20%, facilitating a transition into a data-driven, intelligent enterprise.

The formation of the new Zeekr is undoubtedly a pivotal move towards bolstering competitiveness on a global scale, aimed at enabling the company to navigate international markets with greater agility.

An Conghui outlined three ambitious "campaigns" that the newly merged entity must undertake this year: a battle for technical innovation, a struggle for product value, and a quest for global expansion.

The first campaign emphasizes a strong focus on technological innovationZeekr aims to develop its "super hybrid" technology, a significant differentiator in today's EV landscapeAn Conghui pointed out that rather than simply converting internal combustion engines to electric power, Zeekr's hybrid strategy will encompass both "top-tier pure electric and strongest hybrid" technologiesThis year, Zeekr plans to enter the 900-volt realm, which promises to enhance the experience of pure electric vehicle technology significantly.

While automotive intelligence has become a critical competitive front, Zeekr has made impressive strides

Advertisements

Last year, the brand introduced an advanced driving system known as Haohan Intelligent Driving 2.0, successfully integrating AI capabilities into its offeringsFurthermore, a partnership with a rapidly growing AI model, DeepSeek, has already been realized, showcasing an integrative approach between smart technology and automotive innovation.

With the acceleration of the AI era, Zeekr recognized it as an essential engine driving the future of electric vehiclesThis year, they established an independent Intelligent Development Department (iDD), which focuses on pioneering advancements in artificial intelligence that will also support daily operations and management of the organization.

Moving forward, Zeekr plans to persistently enhance its AI capabilities and lead the industry in intelligent innovationThe Zeekr Technology Group aims to adopt a holistic development model driven entirely by self-research on both software and hardware fronts, facilitating optimal cooperative routing for intelligent driving initiatives.

Anticipating imminent developments, An Conghui revealed that by late February, they plan to commence user testing for their urban navigation system, including a seat-to-vehicle (D2D) feature, followed by a comprehensive rollout slated for AprilThe second quarter also promises to unveil the Lynk & Co. 900, recognized as the first production vehicle integrating NVIDIA’s Orin chip, alongside a showcase of level 3 autonomous driving technology at the Shanghai Auto Show.

Besides technological assertions, the second campaign centers on product valueReports indicate that Lynk & Co. will introduce two new models by 2025, aspiring to hit an annual sales target of 390,000 unitsMeanwhile, Zeekr aims to roll out three new models with a target of 320,000 units for the year.

The third campaign relates to global encroachment strategiesAn Conghui noted, "Being global is a common thread that binds Lynk & Co. and Zeekr together."

Remarkably, just two years after launching their first car, Zeekr embarked on a global journey in 2023, extending its reach into over 40 countries, from Sweden to Australia, the UAE, Singapore, Mexico, and Egypt, covering six continents

Advertisements

Four flagship models—Zeekr 001, Zeekr 009, Zeekr X, and Zeekr 7X—have successfully entered international markets.

Lynk & Co. has also made notable strides abroad, boasting total exports exceeding 80,000 units since inception, consistently ranking as the top Chinese brand in Europe's segment for vehicles priced above 40,000 euros for three consecutive years.

Global expansion remains a cornerstone for the future of ZeekrUnlike other brands primarily focused on emerging markets, Lynk & Co. and Zeekr will maintain a strategy directed "upwards and onwards," specifically targeting the premium and luxury markets in Europe, the Middle East, and East Asia.

Additionally, An Conghui highlighted that the two brands will work collaboratively to penetrate international markets by establishing a unified sales subsidiary outside of Europe and creating a synchronized market entry strategy to bolster their global channel building.

By 2025, the plan is to have over 200 stores opened in international markets, with Lynk & Co's 08 EM-P and Zeekr's first "800-volt global vehicle," the Zeekr 7X, set for overseas launches.

Through these three key campaigns, the new Zeekr aims to achieve an annual sales target of 710,000 vehicles, equating to a 40% year-on-year increase, with the overseas market comprising 10% of this figure—60% attributable to Lynk & Co. and 40% to Zeekr—aspiring to realize a vision of becoming the BBA of the new energy era.

Standing at this pivotal juncture, the new Zeekr envisions evolving into a global leader in high-end luxury electric vehicles, achieving a production and sales volume of one million units annually within the next two yearsThe ambition could potentially reshape the dynamics of both the Chinese and global premium automotive markets.

Clearly indicative of bold aspirations and strategic vision, the new Zeekr recognizes that it must translate these ambitions into decisive action in the years ahead.

Advertisements

Advertisements