US-based automaker Ford and China’s Geely are currently in talks regarding a potential collaboration that could see them combine manufacturing operations in Europe and share vehicle technologies. Sources reported to Reuters that discussions are underway to explore the possibility of Ford’s European plants assembling vehicles for Geely to sell locally, as well as collaborating on in-vehicle technologies like automated driving systems.
Insiders familiar with the discussions revealed that the European manufacturing aspect of the collaboration is more advanced than other elements being considered. Ford has even sent a team to China to intensify negotiations following recent meetings between senior executives from both companies in Michigan. These discussions have been ongoing for several months, indicating a significant level of interest from both parties.
The report highlighted that Chinese automakers have faced challenges entering the US market due to tariffs and restrictions implemented during the Biden administration over national security concerns related to vehicle software and data. Any plans involving Chinese technology in the US would likely face scrutiny from not only the Trump administration but also lawmakers.
One source mentioned that Ford’s site in Valencia is a leading candidate to participate in the collaboration. By producing vehicles within the EU, Geely could potentially bypass the duties imposed on China-built electric cars, such as the provisional levies introduced in 2024, which can be as high as 37.6% on imported Chinese EVs.
Other manufacturers are also establishing European production facilities, with companies like Leapmotor planning to use a Stellantis factory in Spain through a joint venture, and Guangzhou Automobile Group and XPeng working with Magna International in Austria.
Geely already collaborates with Renault in South Korea and Brazil and has faced criticism in Washington over Ford’s decision to license battery technology from CATL. Geely Auto, home to Zeekr and Lynk & Co, reported a 39% increase in sales in 2025, surpassing three million vehicles.
In a separate development, Ford and Xiaomi were reportedly in talks over US EV production, although both companies have denied these claims. Geely Holding Group recently outlined plans to increase global vehicle sales beyond 6.5 million by 2030 under a new strategic blueprint.
The article “Ford and Geely discuss European production and tech tie-up” was originally published by Just Auto, a brand owned by GlobalData. Please note that the information provided in this article is for general informational purposes only and should not be relied upon as advice. It is recommended to seek professional advice before making any decisions based on the content provided.
