Volvo Cars sells 30% of Lynk & Co shares to Zeekr

The announced the divestment of its 30% stake in Zeekr, a transaction that represents a price of around SEK 8 billion (SEKs). The exchange will be paid in cash, with 70% of the amount paid in the transaction closure and 30% plus interest paid one year after the closure. The transaction is expected to be completed in the first quarter of 2025. Volvo Cars has been a minority shareholder of Lynk & Co since the company was founded in 2017. The divestment is linked to a new development phase of Lynk & Co in the future, which includes a new ownership structure for the company. Volvo Cars will continue to focus on business partnerships with Lynk & Co on selected markets where there is strategic benefit for both companies. The transaction includes Volvo Cars (China) Investment Co., Ltd, an indirect subsidiary of Volvo Car AB, which sells its share of Lynk & Co Automotive Technology Co., Ltd to Zhejiang Zeekr Intelligent Technology Co., Ltd, an indirect subsidiary of Zeekr Intelligent Technology Holding Limited. The transaction is subject to approval by an Extraordinary General Meeting of Volvo Cars Shareholders expected to take place in the first quarter of 2025, as well as other regulatory approvals. Volvo Cars’ global sales increased by 3% in October. Volvo Cars reported worldwide sales of 61.686 cars in October, increased by 3% compared to the same period last year. The increase in sales is mainly due to the strong performance of electric models in Europe. Sales in the US and China decreased, but the performance of the electric series was stable. The company’s sales of electric and plug-in hybrid models – increased by 40% compared to the same period last year and accounted for 48% of all cars sold in October. The share of fully electric cars constituted 22% of all cars sold for the month. Total sales for the period January – October amounted to 622,608 cars worldwide, increasing 9% compared to the same period in 2023. In Europe, sales reached 30,167 cars in October, increased by 21% compared to the same period last year. Sales of Volvo Cars’ electric models increased by 46% compared to the same period last year and the share of electric models represented 66% of all cars sold in Europe in October. Sales in the US decreased 17% in October, reaching a total of 9,360 cars. However, sales of electric models increased 18% compared to the same period last year, with plug-in hybrid models increasing by 67%. In October, Volvo XC60 was the top-selling model, reached 19,846 units (2023: 20,212 units), followed by XC40/EX40, with total sales of 14,088 cars (2023: 17,022) and XC90 with 8,517 (2023: 7,961 units).