ZEEKR Recalls Over 38,000 Vehicles Amidst 2.3 Billion Yuan Dispute Involving Geely and Sunwoda

Deep News
Feb 12

ZEEKR Intelligent Technology Co., Ltd. has announced a recall of more than 38,000 vehicles, drawing significant public attention as the year draws to a close. According to a notice issued by the State Administration for Market Regulation's recall center, the affected models are the ZEEKR 001 WE edition.

The recall involves vehicles where, due to inconsistencies in the manufacturing of high-voltage power battery components, prolonged use may lead to an abnormal increase in the internal resistance of the power battery. This could result in decreased performance of some power batteries and, in extreme cases, thermal runaway, posing a safety risk.

This is not the first time ZEEKR has faced scrutiny over product quality issues. As early as 2023, multiple ZEEKR 001 owners reported recurring power system failures that impacted daily use.

The recall follows shortly after Geely Automobile successfully completed the privatization of ZEEKR. This move was intended to deepen internal resource integration, enhance efficiency, eliminate redundant investments, reduce costs, improve corporate competitiveness, and build long-term value.

However, last year's sales figures indicate that ZEEKR is currently facing growth challenges. In 2025, ZEEKR brand's annual sales reached 224,100 units, representing only a 1% year-on-year increase. The brand's target for 2025 was 320,000 units, meaning actual sales fell short by nearly 30%. For 2026, Geely has set a sales target of 300,000 units for the ZEEKR brand, a reduction from the previous year's goal.

The recall is linked to a dispute within the Geely group involving Sunwoda Electronic Co.,Ltd. Last year, Geely's power battery company,威睿电动汽车技术(宁波)有限公司, filed a lawsuit against Sunwoda's subsidiary, Sunwoda Power, seeking over 2.3 billion yuan in compensation, citing quality issues with battery cells supplied for ZEEKR and other Geely premium models. The two parties reached a settlement approximately 40 days later. The agreement stipulates that Sunwoda Power will pay 608 million yuan for costs incurred up to December 31, 2025, with future costs to be shared according to a set ratio. The settlement also requires both parties to cooperate if a formal vehicle recall is mandated by authorities.

Prior to this recall, ZEEKR had faced consumer complaints regarding other product quality issues. In 2023, numerous ZEEKR 001 owners reported power system malfunctions. Later, in December of the following year, a consumer reported a severe incident where her new ZEEKR 001 lost power completely while driving on a highway just ten days after purchase.

Just before the recall announcement, Geely Automobile finalized the privatization of ZEEKR, making it a wholly-owned subsidiary and delisting it from the New York Stock Exchange. According to ZEEKR's final financial report before delisting, the company's gross margin was 19.2% in the third quarter of last year. For the full year 2025, the ZEEKR brand's sales totaled 224,100 units, a mere 1% increase year-on-year and significantly below its target of 320,000 units. For 2026, Geely has set a more conservative sales target of 300,000 units for the ZEEKR brand.

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