Volvo Cars has announced the sale of its 30% stake in the Chinese automaker Lynk & Co to Zeekr, in a deal valued at approximately RMB 5.4 billion (SEK 8 billion). This move, which marks a significant shift in Volvo’s involvement with Lynk & Co, is expected to close during the first quarter of 2025.
The divestment will be paid in cash, with 70% of the payment made at the transaction’s closing, and the remaining 30% plus interest due one year later. The sale is part of Lynk & Co’s broader transition into a new phase of development, which includes a restructuring of its ownership model.
Volvo has been a minority shareholder in Lynk & Co since its founding in 2017. Despite the divestment, Volvo Cars emphasized that it would continue to collaborate operationally with Lynk & Co in markets where such partnerships offer mutual benefits. This includes leveraging Lynk & Co’s expertise and presence in specific regions as Volvo focuses on its long-term strategic objectives.
The transaction, which involves the sale of Volvo Cars (China) Investment Co., Ltd.’s stake in Lynk & Co Automotive Technology Co., Ltd. to Zhejiang Zeekr Intelligent Technology Co., Ltd., is contingent on approval from an Extraordinary General Meeting of Volvo Cars’ shareholders. This meeting is expected to be held in the first quarter of 2025, with further regulatory approvals to be obtained before the deal can be finalized.
The sale is the latest move in Volvo’s ongoing evolution as it adjusts its portfolio and partnerships to reflect changing market conditions and its own strategic priorities. The deal also highlights Zeekr’s growing influence within the electric vehicle sector, with the company continuing to expand its footprint in China and beyond.
