STOCKHOLM, March 30 (Reuters) - Sweden-based Volvo Cars said on Monday it will become importer of Lynk & Co cars in Europe, according to a signed memorandum of understanding with Geely Auto. (
Volvo Cars to exclusively sell Lynk & Co electric cars in Europe
Exclusive Distribution Agreement and Strategic Implications
STOCKHOLM, March 30 (Reuters) - Volvo Cars has signed a memorandum of understanding with its Chinese sister company Geely Auto to become the exclusive importer and distributor of Lynk & Co electric vehicles in Europe, the company said on Monday.
Strengthened Collaboration Between Volvo Cars and Geely
After Volvo Cars last year brought back CEO Hakan Samuelsson - a trusted confidant of Geely-owner Li Shufu who ran Volvo Cars for over a decade - the company has strengthened its collaboration with brands, suppliers and technology that are ultimately controlled by privately held Geely Holding.
Lynk & Co’s Expansion in Europe
Among them, Lynk & Co, founded in 2016 in Sweden, is a premium brand that sells and rents vehicles in several European markets and has expanded beyond its original 01 plug-in hybrid SUV.
Sales and Service Integration
"Volvo Cars intends to use Volvo Cars retailers for the sale of Lynk & Co cars and use its sales and servicing system in relevant markets," Volvo Cars said.
Product Lineup and Market Impact
Three Lynk & Co models, 01, 02 and 08, are set to be sold through Volvo under the current deal, a Geely Auto spokesperson said, though the line-up might change depending on the final agreement or business circumstances.
Manufacturing and Tariff Considerations
All are built in China, and Lynk & Co 02 is a pure electric vehicle, meaning the 02 model will be subject to EU tariffs, the spokesman added. The other two models are hybrids.
Strategic Benefits for Both Brands
The new partnership will allow both brands to reach a wider audience, as they target different customers and segments without additional product investments, it said further.
Scalability and Dealer Network
"By leveraging Volvo Cars' central commercial operations and mature dealer network, Lynk & Co Europe will achieve faster scalability capable of supporting higher volumes," Lynk & Co said in a separate statement.
Geely’s Ambitions and Broader Automotive Strategy
Global Growth Targets
AIMS TO RANK AMONG THE FIVE BIGGEST
Geely Holding said in January it aimed to rank among the world's five leading automakers with global sales of over 6.5 million vehicles by 2030 and last week it announced plans to double by next year the number of vehicle projects it manages at its European technology hub.
Volvo’s Electrification Plans
Until 2024, Volvo Cars planned to go all-electric by the end of the decade, but it has continued to introduce hybrids as demand for fully electric vehicles has slowed.
Geely’s Brand Portfolio and Integration
Geely Holding has a large portfolio of automotive brands that also includes Zeekr, Lotus and Polestar. Over the last two years, it has shifted its focus from acquisitions to cost-cutting and tighter integration, consolidating brands such as Lynk & Co and Zeekr under Geely Auto.
(Reporting by Anna Ringstrom, Marie Mannes, Alessandro Parodi and Ju-min Park; Editing by Essi Lehto, Barbara Lewis and Raju Gopalakrishnan)
