• Volvo Cars will take charge of Lynk & Co's commercial and brand operations in Europe from January 2027, providing retail and after-sales network support.
• The partnership involves no ownership changes, with Geely Auto retaining responsibility for Lynk & Co's global product development and overall brand strategy.

Geely Auto (HKEX: 0175) has reached a definitive agreement with Volvo Cars that will make the Swedish automaker the exclusive distributor for Geely Auto's Lynk & Co brand in Europe.

The arrangement will take effect in January 2027, with Volvo Cars assuming full responsibility for Lynk & Co's commercial and brand operations in Europe, according to a statement Geely released on Thursday.

The partnership will allow Lynk & Co to expand through Volvo Cars' established retail and after-sales service networks in Europe. It comes as Lynk & Co's sales face pressure while overseas markets underpin Geely's overall growth.

Geely said the cooperation will help Lynk & Co shift toward a more scalable retail model in Europe, expanding its market presence and improving customer reach.

When Lynk & Co unveiled its European strategy in September 2020, its main selling point was a subscription model offering flexible vehicle access for a monthly fee. The latest agreement further reinforces its shift toward expansion through a dealer network in Europe.

The partnership involves no changes to the ownership structure. Geely will continue to lead Lynk & Co's global product design, research and development, regulatory certification and overall brand strategy.

Volvo Cars will handle Lynk & Co's market operations in Europe, while Geely retains control of the brand's core product activities.

Lynk & Co was jointly founded by Geely Auto and Volvo Cars in 2017.

In November 2024, Lynk & Co's sister brand Zeekr announced a series of equity acquisitions and a capital injection to secure a 51% stake in the company, including the purchase of Volvo Cars' 30% holding. The transaction was completed in February 2025.

Volvo Cars said at the time that it would continue to pursue operational cooperation with Lynk & Co in selected markets of strategic importance to both companies after selling its stake.

The latest agreement comes as Lynk & Co faces declining sales. The brand sold 17,027 vehicles in August, down 37% year-on-year, while sales in the first 8 months fell 15% to 177,624 vehicles.

Geely's exports, by contrast, continued to strengthen. August exports rose 205% year-on-year to 110,094 vehicles, setting a monthly record for the eighth consecutive month and accounting for about 41% of total sales.

Export growth offset a decline in domestic sales, lifting Geely's total August sales by 8.01% year-on-year to 270,194 vehicles, according to data compiled by CnEVPost.

Geely raised its annual export target in August to 920,000 vehicles from 640,000. Exports in the first 8 months totaled 690,985 vehicles, meeting about 75% of the revised goal.