CHINESE car-maker and multi-brand owner Geely Auto is shuffling its ownership status in a bid to contain costs in an increasingly competitive and crowded EV market. The move comes at a time when the threat of EV tariffs in Europe combines with an uncertain future under a less-friendly-to-EVs Trump administration in the US.

The first change is that its EV sub-brand Zeekr, which only launched in Australia in October, now takes control of another sub-brand – Lynk & Co – in a move Geely said will reduce costs and “unlock synergies”. 

Reuters reported that under the Geely restructuring Zeekr, which is an NYSE-listed technology company that manufactures vehicles, will lead innovation for electric and connected vehicles. It shares that technology with other brands including Lynk & Co and Polestar.The move will also mean Zeekr-Lynk & Co will have combined annual sales of more than one-million vehicles. Last year, they sold 339,000 vehicles.

The South China Morning Post reported that under the restructuring plan, Zeekr will buy Geely’s shares in Lynk & Co for $US1.24 billion ($A1.9b) and end up with a 51 per cent stake. The seller is a company associated with Geely founder Li Shufu.

The remaining 49 per cent will remain under the control of Geely Auto.

At the same time, Geely will raise its share of Zeekr to 62.8 per cent from 51.5 per cent at a cost of $US806.1 million ($A1.24b), also from the Geely founder’s associate company.

Geely chairman Li Shufu said in a statement that the “integration is a key measure for Geely Holding to implement its long-term strategic plans.

“The coordination and integration of our brands supports their sustainable operations and generates greater synergies that benefit sales, services, revenue, and product competitiveness allowing our companies to provide greater value and opportunities to both global consumers and shareholders.”

Geely added that it will form a closer relationship between Geely Auto, Zeekr and Lynk & Co brands including sharing hardware and software along with greater efficiencies in the supply chain and after sales service sectors.

The South China Morning Post said Geely was profitable on three-quarter revenue (to September) up 20 per cent to 60.4 billion yuan ($A12.8b). 

Zeekr and Lynk & Co are not profitable yet, the newspaper said. Zeekr announced its loss in the three months to September was trimmed back to 22 per cent down (compared with 30 per cent down in the previous three months) to a loss of 1.148 billion yuan ($A242m).

Geely Group’s automotive brands are now Volvo Cars, Polestar, Proton, Lotus and LEVC (London black cabs) as well as Chinese-domestic brands Geely, Zeekr and Lynk & Co.