Lynk & Co wins Volvo as a distribution partner in Europe

The takeover of the shares was announced in November, when the Chinese Geely Group revealed that it was reorganising its brands. In this move, the Geely subsidiary Volvo Cars was to sell its 30 per cent stake in Lynk & Co to Zeekr for around 700 million euros, although both brands were already majority-owned by Geely. “The proposed move aims to accelerate technological synergies between the two brands, streamline product portfolios and promote talent development, which should ultimately lead to higher global sales volumes,” Geely said at the time.

Lynk & Co was founded in 2017 as a joint venture between Geely and Volvo Cars and initially focussed on hybrids and plug-in hybrids – also in Europe. However, the brand was only moderately successful in Europe with the Lynk & Co 01 SUV. With the 02 (sold in China as the Z20), a battery-electric SUV has now also come to Europe, which is available from 35,995 euros.

Zeekr, on the other hand, has focussed on all-electric vehicles since it was founded in 2021, but its expansion in Europe has been slow so far. The launch in Germany, originally announced for early 2024, has still not been completed.

The future success of Lynk & Co in Europe will in any case depend on distribution, which has been a problem so far. Lynk & Co sold its 01 in Europe exclusively online and only in a subscription model until it was temporarily withdrawn from the market in the summer of 2024 due to EU cyber security guidelines. However, the 01 can now be ordered again and can also be leased or purchased directly instead of using the subscription model.

In September 2024, the company then announced that it would be reorganising its sales in Europe, increasing its focus on self-operated clubs in major cities and opening a larger number of showrooms together with partner dealers. It was not yet known at the time that Volvo would be one of these retail partners. However, Volvo has now announced that the two companies had already agreed on such a collaboration in September 2024 – even before the planned takeover by Zeekr was announced.

The retail partnership will give Lynk & Co access to selected Volvo authorised partners in seven European countries, namely Sweden, Germany, the Netherlands, Belgium, France, Spain and Italy. Other European markets could follow. This wholesale model will enable customers to purchase new Lynk & Co cars directly from various Volvo dealerships.

In addition to the sale of new vehicles, the partnership also includes joint efforts in the used vehicle sector as well as cooperation in spare parts sales and logistics. The retail partnership was sealed at the end of 2024 with the establishment of a corresponding joint venture.

“Our retail partnership with Lynk & Co fulfils all the requirements for continued success,” explained Arek Nowinski, President of International Markets at Volvo Cars. “While Lynk & Co will continue to be responsible for product development and sales strategy, our retail expertise and operational processes will help the brand grow its business in Europe. Volvo Cars and Lynk & Co agree on the strategy for this partnership and are confident that it will be a success.”

Volvo Cars had previously received approval from its shareholders to sell its 30 per cent stake in Lynk & Co, as first announced in November 2024. The transaction is worth the equivalent of 5.4 billion Chinese renminbi, or around 700 million euros.

Source: Info via email, volvocars.com