Ford and Geely in Advanced Talks Over European Manufacturing Partnership Deal

American automotive giant Ford and Chinese manufacturer Geely are engaged in discussions regarding a potential collaboration, according to eight individuals with knowledge of the ongoing negotiations, as global carmakers seek to distribute increasingly substantial technology development and manufacturing expenditure.

European Manufacturing Talks Take Centre Stage

The companies are exploring an arrangement where Geely would use Ford's factory capacity in Europe to manufacture vehicles for the regional market, three people familiar with the matter confirmed, news agency Reuters has reported. They have additionally discussed a potential framework for shared vehicle technologies, including systems for automated driving, according to two separate individuals with knowledge of the discussions.

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The negotiations centred on European manufacturing have progressed further than other aspects of the talks, two sources were quoted in the report. Ford dispatched a delegation to China this week to advance the discussions, following meetings last week in Michigan between senior Geely executives and Ford leadership, several of the sources revealed.

Negotiations Remain Confidential

Conversations between Geely and Ford have been underway for several months, stated five of the sources, who requested anonymity as the discussions remain private and ongoing.

Geely declined to provide comment, as per the report. Ford responded: "We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialise, sometimes they don't."

US Market Entry Faces Obstacles

Chinese automotive manufacturers have been effectively excluded from the American market due to tariffs and restrictions implemented during the Biden administration, which cited national security concerns related to data collection and vehicle software systems. Any agreement to introduce advanced Chinese vehicle technology to the US market would likely attract scrutiny from the Trump administration and certain lawmakers.

Closing Technology Gap with China

A partnership could assist Ford in its efforts to match global competitors in areas such as connected-vehicle technology and autonomous driving capabilities -- priorities for Tesla and major focal points for Chinese automotive manufacturers. Ford Chief Executive Jim Farley has been outspoken regarding the necessity for his company to close the competitive gap with China.

European Manufacturing Strategy

Manufacturing certain vehicles using Ford's European factory infrastructure would likely enable Geely to avoid the European Union's tariffs on China-manufactured electric vehicles. In 2024, the EU introduced provisional tariffs of up to 37.6 per cent on imported Chinese EVs, cautioning against a potential influx of unfairly subsidised vehicles.

Ford's manufacturing facility in Valencia, Spain, would most probably be the plant involved in these discussions, a person familiar with the matter indicated.

Chinese Carmakers Establish European Production Footprint

Multiple Chinese carmakers have initiated moves to establish production operations in Europe. Vehicles from Chinese automotive manufacturer Leapmotor will be produced at a Stellantis facility in Spain as part of a joint venture arrangement. Suppliers are likewise striking similar agreements, with China's Guangzhou Automobile Group and Xpeng constructing an electric model at a Magna International facility in Austria.

Geely has previously partnered with Renault in South Korea and Brazil to jointly manufacture and distribute vehicles built on Geely technologies utilising the French manufacturer's factories and sales infrastructure. The strategy appears to be delivering results, as Renault-branded vehicle sales outside Europe increased 11 per cent in 2025 from a year earlier, compared with a 0.6 per cent decline in 2024.