DETROIT/BEIJING, Feb. 4 (GeokHub) — Ford Motor Co. and China’s Geely are holding discussions over a potential manufacturing and technology partnership, according to multiple sources familiar with the talks, as global automakers look to share rising costs tied to advanced vehicle technologies and production.
People with knowledge of the negotiations said the companies are exploring an arrangement that would allow Geely to use Ford’s factory capacity in Europe to manufacture vehicles for the regional market. The discussions have also touched on a broader framework for cooperation on vehicle technologies, including systems related to automated and connected driving.
Sources cautioned that the talks remain ongoing and private, and it is not yet clear whether they will result in a formal agreement.
European Manufacturing Talks Advance
Discussions focused on Europe are said to be the most developed so far. Ford recently sent a delegation to China to deepen negotiations, following earlier meetings in Michigan between senior executives from both companies, according to people briefed on the matter.
Ford’s plant in Valencia, Spain, has been identified as the most likely site for any potential European production, one source said. Manufacturing vehicles within the European Union could help Geely avoid steep tariffs imposed on Chinese-made electric vehicles, which currently run as high as 37.6% under EU trade measures introduced in 2024.
Chinese automakers have increasingly turned to European production partnerships as they seek to expand their footprint while navigating regulatory barriers.
Technology Sharing Under Discussion
Beyond manufacturing, the companies have discussed cooperation on vehicle technologies, including software and autonomous-driving systems, two sources said. Such a deal could help Ford narrow a technology gap with competitors, particularly in connected vehicles — an area where Chinese automakers have emerged as global leaders.
Ford CEO Jim Farley has repeatedly highlighted China’s rapid progress in electric and software-defined vehicles, calling it a wake-up call for Western automakers.
Political and Regulatory Sensitivities
Any deeper collaboration — especially involving technology destined for the U.S. market — would likely face scrutiny from U.S. lawmakers and regulators. Chinese automakers remain effectively excluded from the American market due to tariffs and rules restricting the use of Chinese vehicle software and data-handling technologies, citing national security concerns.
Those restrictions remain in force under the Trump administration, even as the president has said he would welcome Chinese automakers that invest and create jobs inside the United States.
Ford declined to comment on specifics, saying it regularly holds discussions with multiple companies that may or may not lead to partnerships. Geely also declined to comment.
Partnerships Gain Momentum Across the Industry
The potential Ford-Geely talks come amid a broader push by global automakers to form alliances to cope with soaring development costs for electric vehicles, software platforms and autonomous driving.
Geely has successfully pursued similar strategies elsewhere, partnering with Renault in South Korea and Brazil to produce vehicles using Geely technologies through Renault’s manufacturing and sales networks. Renault’s sales outside Europe rose sharply in 2025 following that collaboration.
Geely Auto reported a 39% increase in vehicle sales in 2025, selling just over 3 million vehicles. Including affiliated brands such as Volvo Cars and Lotus, Geely ranks as China’s second-largest automaker behind BYD.
