In May 2024, Zeekr went public but may soon revert to private ownership under Geely, which holds a 65.7% stake. CEO Li Shufu believes this would improve management, streamline resources, and boost competitiveness in the EV market. Following reports of potential buyback, its stock experienced an 11% rise, despite previous fluctuations. By consolidating under the private umbrella, Geely aims to enhance cross-brand collaboration, critical for the success of their EV developments, especially amid increasing competition from other manufacturers in the electric vehicle sector.
Li Shufu suggested Geely might buy back remaining Zeekr stock to take it private, aiming for better management and competitive advantage in the electric vehicle market.
Zeekr's transition to a private company could streamline resources and enhance internal collaboration, positioning Geely for stronger performance against rivals in the EV sector.
The stock market responded positively to the news of a potential buyout, with shares rising 11% since the announcement amidst ongoing discussions of consolidation.
Experts speculate this move could signal broader trends in China’s automotive industry, as legacy automakers like Geely look to consolidate brands for improved operational efficiency.
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