Geely CEO: Zeekr Privatization to Save Billions in R&D Costs
Geely Holding Group plans to take its New York-listed subsidiary, Zeekr, private to achieve deep integration with its Hong Kong-listed mainstream car business, Geely Auto. Daniel Li, CEO of Geely Holding, stated that this move serves as the ultimate solution for restructuring operations and is expected to save several billion yuan annually in research and development, manufacturing, and support functions. Gui Shengyue, CEO of Geely Auto, emphasized the need to consolidate resources into a unified strategy to compete effectively in the fierce automotive market. This decision follows the recent merger of Zeekr with Lynk & Co and aligns with Geely’s broader cost-cutting initiatives. Upon completion, Geely Auto will become the flagship public entity for all wholly-owned brands, including Galaxy and the Star Series, while non-wholly owned brands like Polestar and Lotus remain separate. The announcement coincided with strong first-quarter financial results, showing a 48% sales increase and a 264% rise in net profit for Geely Auto, highlighting the company's strategic shift from expansion to operational efficiency and resource optimization.
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Geely CEO: Zeekr Privatization to Save Billions in R&D Costs
Geely Holding Group plans to take its New York-listed subsidiary, Zeekr, private to achieve deep integration with its Hong Kong-listed mainstream car business, Geely Auto. Daniel Li, CEO of Geely Holding, stated that this move serves as the ultimate solution for restructuring operations and is expected to save several billion yuan annually in research and development, manufacturing, and support functions. Gui Shengyue, CEO of Geely Auto, emphasized the need to consolidate resources into a unified strategy to compete effectively in the fierce automotive market. This decision follows the recent merger of Zeekr with Lynk & Co and aligns with Geely’s broader cost-cutting initiatives. Upon completion, Geely Auto will become the flagship public entity for all wholly-owned brands, including Galaxy and the Star Series, while non-wholly owned brands like Polestar and Lotus remain separate. The announcement coincided with strong first-quarter financial results, showing a 48% sales increase and a 264% rise in net profit for Geely Auto, highlighting the company's strategic shift from expansion to operational efficiency and resource optimization.
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