Volvo Cars has announced the sale of its 30% stake in Chinese automaker Lynk & Co to Zeekr, a fellow subsidiary under the Geely umbrella. The deal, valued at 5.4 billion RMB (approximately 3 billion USD or 26.7 billion CZK), involves a cash transaction split into two phases. The first 70% will be paid upon completion, with the remaining 30%—plus interest—scheduled for payment within a year.
Continuing Strategic Cooperation
While Volvo Cars is stepping back as a shareholder, it has confirmed plans to maintain a strategic partnership with Lynk & Co in select markets where collaboration is mutually beneficial. This move aligns with a broader restructuring at Lynk & Co, as Geely appears to be consolidating its interests in Chinese automotive brands.
Legal and Approval Process
The transaction includes the transfer of Volvo Cars (China) Investment Co., Ltd’s shares in Lynk & Co Automotive Technology Co., Ltd to Zhejiang Zeekr Intelligent Technology Co., Ltd. The deal remains subject to the approval of Volvo Cars’ shareholders, with a vote expected at an extraordinary general meeting in the first quarter of 2025.
Volvo’s 2023 Financial Milestones
In 2023, Volvo Cars posted a record operating profit of 58.5 billion CZK and reached a historic revenue peak of 912.7 billion CZK. Global vehicle sales hit a new high, with over 708,000 units sold worldwide, underscoring Volvo's solid position amidst growing competition and shifts in the automotive industry, especially in the electric vehicle segment.
A Legacy of Volvo Cars
Founded in 1927, Volvo Cars has grown into one of the most respected names in the automotive industry, with a presence in over 100 countries. The company’s shares are traded on the Nasdaq Stockholm exchange under the ticker symbol "VOLCAR B."
Source: media.volvocars.com, EVmagazin.cz
