Ford and Geely explore potential partnership in Europe

Ford and Geely are holding talks over a possible partnership, as global carmakers increasingly look to share advanced technologies and production costs. The discussions were cited by sources quoted by Forbes and Reuters.

According to the sources, one option under consideration would allow Geely to use Ford’s European manufacturing plants to produce vehicles for the European market. The two companies have also discussed potential technology-sharing arrangements, although talks related to European production appear to be more advanced. Ford recently sent a delegation to China following meetings held in Michigan between executives from both companies, Reuters reported, citing Agerpres.

When asked to comment, Geely declined, while Ford stated: “We have discussions with many companies all the time on various topics. Sometimes they lead to outcomes, sometimes they don’t.”

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Geopolitics, tariffs, and strategic interests

Chinese automakers have been largely shut out of the U.S. market due to tariffs and restrictions introduced during the Biden administration, which cited national security concerns related to data collection. Any deal that could bring advanced Chinese vehicle technology into the U.S. could attract scrutiny from the Trump administration and other authorities.

For Ford, a partnership with Geely could help narrow the gap with global competitors in areas such as connected vehicle technology, a field where Chinese automakers and Tesla have moved quickly. Ford CEO Jim Farley has repeatedly emphasized the need to close the competitive gap with China.

For Geely, manufacturing vehicles at Ford’s European plants would help avoid EU tariffs on electric vehicles produced in China. In 2024, the European Union imposed duties of up to 37.6% on Chinese-made EVs, warning of a potential surge of unfairly subsidized imports. A source cited by Reuters said Ford’s Valencia plant in Spain is the most likely facility involved in the talks.

Photo: The Business Times