Short dive:
- Volvo Car Group has sold a 30% stake in automaker Lynx & Co., the company announced in a Nov. 14 press release.
- Volvo Cars operates Lynx & Co. together with its parent company Geely Auto Group, and on the day of the announcement, its 30% equity stake in the company was valued at 5.4 billion yuan ($747.4 million).
- According to the release, the sale of the automaker to Lynx & Co. is part of a new ownership structure and the next phase of development of the brand. However, Volvo Cars will continue to focus on future strategic collaborations with Lynx & Co. in selected markets that could benefit both companies.
Diving information:
Following the sale of Volvo, Geely-owned electric vehicle brand Zeekr, based in Hangzhou, China, is taking a majority stake in the company as part of a new ownership structure. Zeekr was founded by Geely in 2021 as a premium brand to compete with luxury automakers such as Tesla, Audi and BMW. The company is acquiring Lynx & Co. shares held by both Geely and Volvo.
Lynx & Co. was founded in 2017 and mainly focuses on the emerging electric vehicle market in China. Volvo has been a minority shareholder since the company was launched as a jointly managed automotive brand. Lynx & Co. is headquartered in Gothenburg, Sweden, and its vehicles are produced by Geely in China.
Volvo Cars will receive an upfront cash payment equal to 70% of its 5.4 billion yuan stake in Lynx & Co. once the sale is concluded, with the remaining 30% to be paid a year later, according to the release.
The transaction is expected to close in the first quarter of 2025 and is still subject to approval at a special meeting of Volvo Cars shareholders, scheduled for the first quarter of 2025. It is also subject to other regulatory approvals.
While Lynx & Co. remains focused on launching new high-tech electric vehicles in China to compete with brands like BYD and Tesla, it also offers both hybrid and traditional combustion engine models. The company’s latest vehicle is an all-electric model dubbed the “02,” which offers a range of 276 miles.
Volvo also operates the Polestar electric vehicle brand alongside parent company Geely. In August, Polestar began production of the Polestar 3 at Volvo Cars’ assembly plant in South Carolina. Polestar is actively working to increase its manufacturing presence in the United States ahead of new tariffs expected on electric vehicles.