Li Shufu is orchestrating a grand strategic move by bringing ZEEKR back under Geely Auto's umbrella. Amid an increasingly complex competitive landscape in the automotive industry, the transition from growth-driven expansion to cutthroat market share battles has forced automakers to streamline operations or risk being sidelined. Against this backdrop, Li’s decisive move to reintegrate ZEEKR marks a calculated strategic pivot rather than a mere financial transaction.
Less than two years after its privatization, ZEEKR has officially rejoined Geely Auto. The Hong Kong-listed automaker recently announced the completion of the merger on December 22, 2025, making ZEEKR a wholly-owned subsidiary and delisting it from the New York Stock Exchange.
The process unfolded swiftly: Geely proposed acquiring all outstanding ZEEKR shares in May 2025, signed a merger agreement in July with a total consideration of approximately $2.4 billion (RMB 17.2 billion), and secured 94.2% shareholder approval in September. This rapid execution reflects a deliberate consolidation strategy rather than an impulsive decision.
Li Shufu framed the move as part of Geely’s "One Geely" initiative, referencing the 2024 Taizhou Manifesto that emphasized cost efficiency and innovation through resource integration. The goal is clear—shift from expanding market presence to strengthening systemic capabilities.
Why reclaim ZEEKR now? Initially spun off to capitalize on investor enthusiasm for EV startups, ZEEKR had been a standout success, going public on the NYSE in just 37 months (May 2024) as China’s fastest EV IPO. However, the standalone model’s drawbacks—including duplicated R&D spending (over RMB 5 billion annually with Geely in areas like battery systems and smart cockpits), operational inefficiencies, and mounting losses (ZK reported a RMB 5.79 billion net loss in 2024 with 131% debt ratio)—outweighed its early advantages.
Geely’s sprawling brand portfolio (Geometry, Lynk & Co, Zeekr, Lotus, etc.) has also led to internal competition and resource dilution. Post-merger, Geely consolidates its passenger vehicle brands under one entity, aiming to transform scattered assets into a unified competitive force. CEO Gui Shengyue emphasized that only through deep integration can Geely prevail in today’s brutal market.
For ZEEKR, leaving public markets removes quarterly earnings pressure, allowing long-term alignment with Geely’s technology roadmap. Group-wide synergies are projected to reduce ZEEKR’s R&D costs by 10-20%, component expenses by 5-8%, while boosting capacity utilization by 3-5% and cutting marketing overhead by 10-20%, according to Geely Holding President An Conghui.
This consolidation mirrors broader industry trends as automakers like SAIC and GAC streamline operations amid the EV sector’s "survival of the fittest" phase. With global EV competition intensifying and smart tech becoming pivotal, Geely’s restructuring positions it for 2026 and beyond.
Li Shufu, ranked among China’s top 10 wealthiest individuals (RMB 225 billion net worth, Hurun 2025), now oversees nine listed companies post-ZK delisting, including Volvo and Polestar. His entrepreneurial journey—from a photo studio startup in 1982 to the landmark acquisition of Volvo in 2010—underscores his risk-taking ethos. Recent achievements, such as Geely winning multiple quality and service awards and setting five Guinness World Records (including largest auto safety lab), highlight its growing technical prowess.
As Li asserts, sustained R&D investment and core technological advantages—not speed—will determine long-term survival. This merger is Geely’s latest bet on that principle.
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