(Feb 14): Zeekr Group, the new entity that now houses Zhejiang Geely Holding Group Co’s electric vehicle (EV) brand Zeekr and smart car marque Lynk&Co, aims to sell 710,000 units this year and make a renewed push into overseas markets.

Chinese billionaire Li Shufu put plans in place last November to bring the two brands together and that transaction has now been completed, according to a Zeekr statement on Friday. Lynk&Co was initially set up as a joint venture between Volvo Car AB and Zhejiang Geely. Under the deal, Zeekr acquired 30% of Lynk&Co’s shares from Volvo Car and a 20% stake from Geely.

Hong Kong-listed Geely Automobile Holdings Ltd retains a minority stake of 49% in Lynk&Co and recorded a gain of 6.47 billion yuan (RM3.95 billion) from the change in Lynk&Co’s status, according to a separate stock exchange filing on Friday.

As well as a single global sales network that will cover most regions except Europe, where Lynk&Co has a more established presence, Zeekr Group hopes to save as much as 20% on research and development, sales and marketing and other administrative costs over the coming two years.

The company also plans to reduce raw material and component expenses by up to 8% and raise capacity utilisation rates by up to 5%, according to Zeekr.

The reorganisation comes after Li released a new strategy in September in a document called the Taizhou Declaration. Geely is seeking to consolidate resources and eliminate cross-competition from its various brands. Zeekr will focus on the premium category of EVs that cost 300,000 yuan and above while Lynk&Co’s positioning is in the 200,000 yuan and up segment.

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