Lynk & Co sentenced to disappear

The proliferation of brands within the same group is a risky strategy. Lynk & Co bears the brunt of this at Geely.

The Chinese automotive giant Geely this week celebrated the intention of its new energy brands, Zeekr and Lynk & Co, to seek greater synergies through a regrouping project. Communication is an art practiced by the Chinese with a very particular subtlety because behind this positive message lies quite a different reality. These two brands share the same technologies and very similar designs. One of them is therefore superfluous! And believe us, Gelly is behind this rapprochement and has known for a long time who to cut loose.

The press release continues in the same tone, with nuance and implication, when Geely Holding supports the intention of its subsidiary Zeekr to hold a majority stake in Lynk & Co by acquiring shares held by Geely Holding and Volvo Cars. After the transactions are finalized, Zeekr will hold 51% of Lynk & Co’s shares, while the remaining 49% will continue to be held by Geely. At the same time, Geely plans to increase its stake in Zeekr to about 62.8%. The Chinese group has thus sold Lynk & Co shares to Zeekr before buying back Zeekr shares… The message is very clear, here lies Lynk & Co.

This decision makes sense when following the trajectory of the two brands. Lynk & Co has never managed to establish its long-term rental system without overly expensive and restrictive commitments compared to a traditional lease. Not having strings attached is good, but paying a high price for it is unacceptable. Meanwhile, Zeekr has built a young, fun, and dynamic image. One cousin has overtaken the other; it’s the harsh reality of the automotive market.

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