Geely Taps Volvo to Run Lynk & Co’s European Operations, Accelerating Asset-Light Global Expansion

On March 30, 2025, Geely Automobile announced in a public filing that it had signed a non-binding memorandum of understanding (MoU) with Volvo Cars, under which Volvo will take charge of promoting, selling, and providing after-sales services for the Lynk & Co brand in key European markets, including Germany, France, Spain, and Italy. The collaboration does not involve any equity changes; Lynk & Co will retain full control over product development, delegating only regional operational activities to Volvo. This move enables Lynk & Co to leverage Volvo’s established European dealership network, after-sales service system, and localized resources, thereby shortening channel development timelines and reducing trial-and-error costs. As of February 2026, Lynk & Co had accumulated global sales exceeding 1.74 million units, though its performance in the European market remained modest. Meanwhile, other Chinese automakers are also exploring similar asset-light overseas expansion models. Leapmotor entered into a partnership with Stellantis Group in October 2023, established a joint venture in 2024 to advance its international business, and plans to build a local production facility in Spain. In 2024, Chery partnered with Spain’s EV MOTORS to utilize Nissan’s former Barcelona plant for manufacturing multiple vehicle models, becoming the first Chinese automaker to establish a joint-venture production base in Europe and achieve mass production there. Chinese automakers are accelerating their overseas expansion primarily due to intensifying domestic competition, shrinking profit margins, and the need to capitalize globally on their technological advantages in electrification. In 2025, the automotive industry’s sales profit margin in China hit a historic low, prompting domestic brands to seek growth opportunities abroad. That same year, Chinese brands recorded significant sales growth in Europe, steadily increasing their market share. However, the European Union’s imposition of anti-subsidy duties and carbon tariffs has eroded the price competitiveness of Chinese electric vehicles, compelling automakers to adjust their product strategies—increasing the proportion of plug-in hybrid electric vehicles (PHEVs) and accelerating localization of production. In January 2026, China and the EU reached a price commitment mechanism for battery electric vehicles (BEVs), offering greater policy certainty for exports. Given Europe’s mature market structure, stringent regulations, and consumers’ strong loyalty to local brands, Chinese automakers still face a long road ahead in building brand recognition, after-sales service capabilities, and consumer trust. Industry analysts believe that Chinese automakers’ expansion in Europe will be a gradual process.