Volvo to become sole European importer of Lynk & Co
Volvo Cars and Geely Auto have formalised their distribution partnership plans in a letter of intent, though the final agreement is still pending. The direction is clear: the Geely-owned Volvo Cars is set to distribute vehicles from its group sister brand, Lynk & Co, across Europe using its established dealer network. Outside Europe, Geely’s parent group in China will retain control over the brand’s distribution, as well as global development and product certification.
The recently signed letter of intent builds on an existing arrangement in which vehicles from Volvo Cars and Lynk & Co are already jointly distributed at selected locations in Europe. This approach is now set to be expanded. “The partnership states Volvo Cars becoming the exclusive importer of Lynk & Co cars in Europe and being responsible for Lynk & Co’s commercial and brand operations in Europe, further supporting the brand’s growth plans in the region,” the companies said. This move is expected to drive the brand’s growth in Europe while optimising the use of Volvo Cars’ trading partners in distribution and service operations. “The intention is to create synergies with Volvo Cars by operating the Lynk & Co brand through its central commercial operations and on a market level,” the statement added.
Geely is confident that the two brands appeal to distinct customer groups and are therefore ‘natural collaboration partners’. Erik Severinson, Chief Commercial Officer at Volvo Cars, commented: “With this new arrangement, we will leverage our commercial system to support Lynk & Co’s growth ambitions in Europe. At the same time, it enables Volvo Cars and our retail partners to address a wider customer base. With the support of our retailers and our commercial organisation, Lynk & Co can achieve its true potential in Europe.”
Lynk & Co, founded in 2017 as a joint venture between Geely and Volvo Cars, initially focused on hybrids and plug-in hybrids – including in Europe. With the 02 (sold as Z20 in China), the brand has since introduced a battery-electric SUV to the European market. Importantly, the ownership structure of Lynk & Co has evolved: Volvo Cars sold its 30 per cent stake in the brand to Geely’s Zeekr brand last year. Geely also divested further shares, resulting in Zeekr becoming the majority shareholder of Lynk & Co with 51 per cent as of February 2025. Geely retains the remaining 49 per cent.
Geely Holding has been restructuring its assets for some time to avoid cannibalisation among its numerous subsidiaries. In addition to Volvo, Zeekr, and Lynk & Co, the group includes brands such as Polestar and Lotus. Through a joint venture with Mercedes-Benz, Geely also owns half of Smart. The Chinese automotive group has repeatedly emphasised its intention to better leverage internal synergies and reduce costs overall.
Interestingly, the holding company is already present in Germany with several brands, though not yet with its core Geely brand. This is set to change soon. From May, two SUVs will launch the Geely brand in Germany: the all-electric Geely E5, available from €37,990, and the plug-in hybrid Starray EM-i, starting at €32,990. The market launch is also planned for Spain, the Netherlands, Belgium, and Luxembourg. Geely has already been active in some other European markets for several months. Distribution will be handled through its own showrooms. In Germany, the first location – a site operated by the automotive trading group Kohl Automobile in Aachen – was introduced last week.
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