Ford and Geely Explore Europe-Centered Tech Alliance

Ford and China’s Geely are in advanced talks over a potential manufacturing and technology partnership focused on Europe, according to people familiar with the discussions. The negotiations come as global automakers look to share production capacity and development costs amid intensifying pressure from the electric vehicle transition and increasingly restrictive trade policies.

The discussions are centered on a proposal that would allow Geely to manufacture vehicles for the European market using underutilized Ford plants in the region. The companies are also exploring cooperation on vehicle platforms and selected technologies, including automated driving systems. Sources said the manufacturing component in Europe is the most advanced element of the talks, which have been underway for several months.

Ford confirmed it is engaged in discussions but declined to elaborate. “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they do not,” the company said in a statement to Reuters. Geely declined to comment.

According to people familiar with the matter, Ford recently sent a delegation to China to advance negotiations, following meetings in Michigan involving senior executives from both companies. A Geely executive also visited Ford’s headquarters during the process. 

Under the proposed manufacturing arrangement, Geely would use spare capacity at Ford facilities in Europe, several of which have remained underutilized despite recent investments. One source said Ford’s Valencia plant in Spain is the leading candidate, though no final decision has been made. Ford has also invested heavily in Germany, including a US$2 billion overhaul of its Cologne facility to produce electric vehicles, but output has fallen short of initial expectations.

The discussions come as Ford continues a multiyear restructuring of its European operations, where it has faced high production costs and a slower-than-anticipated transition to electric vehicles. In recent years, the automaker has cut thousands of jobs in Germany and the United Kingdom and narrowed its passenger-vehicle lineup to focus on vans and other higher-margin segments. Even so, several European plants continue to operate below capacity, according to people familiar with the situation.

For Geely, access to Ford’s European manufacturing footprint would offer a cost-efficient production base at a time when Chinese automakers are confronting higher tariffs on vehicles exported from China. In 2024, the European Union imposed provisional tariffs of up to 37.6% on imported Chinese electric vehicles, citing concerns over state subsidies and market distortion. Producing vehicles within the EU would allow Geely to sidestep those tariffs and expand sales of its brands in the region.

Beyond manufacturing, the two companies have discussed collaboration on vehicle technologies, including platforms and systems related to automated driving and connectivity, sources said. Ford Chief Executive Jim Farley has repeatedly acknowledged China’s lead in electric and connected vehicle technologies. Speaking at the Aspen Ideas Festival last year, Farley described China’s position as “the most humbling thing I have ever seen,” and said Ford needed to learn from Chinese competitors to remain globally competitive.

Farley has also sought to address political sensitivities around potential partnerships with Chinese companies. Asked whether a future US administration could block a joint venture with a Chinese automaker, he said he did not believe so, provided appropriate safeguards were in place, adding that he had encountered openness within the US government because such cooperation is increasingly seen as necessary.

Any expansion of a Ford–Geely partnership beyond Europe would likely draw heightened scrutiny in the United States. Chinese automakers have effectively been shut out of the US market by tariffs and restrictions introduced under the Biden administration, which cited national security concerns related to data collection and vehicle software. Regulations drafted during that period prohibit the use of communication technologies and services from China and other designated adversary countries in connected vehicles sold or operated in the United States.

Those restrictions remain in force under the Trump administration, which has not signaled plans to revise them. Although the administration recently removed Elizabeth “Liz” Cannon, a Commerce Department official whose office led efforts to block Chinese vehicle technologies, the regulatory framework itself remains unchanged. President Donald Trump has said he would welcome Chinese automakers that invest in US manufacturing and job creation, even as lawmakers continue to raise concerns about technology transfer.

Ford has previously faced criticism from US lawmakers for licensing electric vehicle battery technology from China’s Contemporary Amperex Technology for a battery plant in Michigan. Analysts said a deeper commercial partnership with Geely involving US-bound vehicles or technologies would likely attract similar scrutiny.

In Europe, however, collaboration between Western and Chinese automakers has become more common as competition intensifies and Chinese brands expand their footprint. Stellantis has taken a 20% stake in China’s Leapmotor and is producing Leapmotor vehicles at a plant in Spain. Renault has also entered multiple partnerships with Geely, including projects in South Korea and Brazil that combine Geely technology with Renault’s manufacturing and distribution networks.

Ford has explored other potential collaborations as well. People familiar with the matter said the automaker has held talks with BYD about using its European facilities, though BYD declined to comment. The Financial Times recently reported that Ford had also discussed a possible partnership in the United States with Chinese electronics and electric vehicle maker Xiaomi, a report both companies later denied.

Geely has continued to expand through partnerships and acquisitions and owns brands including Geely Auto, Zeekr, Lynk & Co, Volvo Cars, Polestar, and Lotus. Geely Auto reported a 39% increase in vehicle sales in 2025, reaching just over 3 million units. Including affiliated brands, Geely ranks as China’s second-largest automaker, behind BYD.

Under founder Li Shufu, Geely has pursued overseas partnerships for more than a decade. In 2010, it acquired Volvo Cars from Ford for US$1.8 billion.