Ford Motor and China’s Geely are in talks over a potential collaboration focused on technology and vehicle production, with negotiations centring on Ford’s manufacturing capacity in Europe, according to a Reuters report citing people familiar with the matter.
Producing vehicles at Ford’s European plants could allow Geely to sidestep European Union tariffs on electric vehicles imported from China, Reuters reported, citing eight sources. Several of the discussions are said to involve battery-electric models, which are currently subject to additional EU duties.
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According to three people familiar with the talks, Geely has explored using Ford Motor’s European factories to build its own vehicles. Two other sources said the negotiations have also covered the possible sharing of vehicle technologies, including automated driving systems. Reuters cited two sources as saying talks related to European production are “more advanced” than other elements of the discussions.
A Ford delegation is in China this week to intensify talks, Reuters reported, adding that earlier meetings were held in Michigan and that negotiations have been ongoing for several months. It remains unclear whether any potential cooperation would extend to the U.S. market.
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Ford declined to comment on specifics, telling Reuters: “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialise, sometimes they don’t.” Geely declined to comment.
Ford currently manufactures electric vehicles at several European sites. These include production of the Mustang Mach-E imported from Mexico, the Puma Gen-E built in Craiova, Romania, and EV output at its fully electrified Cologne plant in Germany, where the Explorer and Capri are produced using Volkswagen’s MEB platform. The automaker has also said it plans to build electric vehicles near Valencia, Spain, after selecting the site over Saarlouis in Germany.
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Although capacity at Cologne is reportedly underused, Reuters said the discussions with Geely are most likely focused on the Valencia plant. Ford has not yet disclosed which models or platforms will be assigned there, previously describing the facility as intended for a “multi-energy platform” after abandoning its goal of selling only electric vehicles in Europe by 2030.
Any agreement could involve technology contributions from Geely, which controls several proprietary EV platforms. Ford Chief Executive Jim Farley has repeatedly praised the technology and connectivity of Chinese EV makers, including publicly citing his experience with the Xiaomi SU7.
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Geely also collaborates with Renault, Ford’s new partner, through the Horse Powertrain joint venture, which develops internal combustion engines. Ford has increasingly emphasised partnerships as it recalibrates its EV strategy, with recent reports suggesting it may source batteries from BYD for hybrid models.
While the talks remain exploratory, any deal could highlight the growing interdependence between Western automakers and Chinese suppliers as Europe balances industrial policy goals with cost pressures and competition in the electric vehicle market.
