Ford Motor Co. and China-based Geely are in active negotiations over a possible commercial arrangement, according to multiple people close to the conversations. Eight people with knowledge of the ongoing talks said the companies have been engaging for months on options that range from using manufacturing capacity to sharing vehicle technology.
Three people familiar with the matter said one strand of the discussions envisions Geely using Ford factory space in Europe to build cars for the regional market. Two different people with knowledge of the talks reported that the companies have also talked through a potential framework for jointly developing and sharing vehicle technologies, including systems related to automated driving.
Those who spoke to reporters indicated the talks focused on European manufacturing are further along than other elements of the discussions - two people said. To intensify the dialogue, Ford sent a delegation to China this week, following meetings last week in Michigan between senior Geely executives and Ford leaders, several participants said.
Five of the sources said negotiations between the two automakers have been under way for months. The full scope of the discussions and whether they will produce a binding deal - including any arrangement for the U.S. market - could not be determined from the available information. Geely declined to comment. Ford provided the following statement: "We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don't."
Regulatory and political context
Chinese carmakers have faced effective exclusion from the U.S. market because of tariffs and restrictions put in place under the Biden administration, which cited national security concerns tied to data collection and vehicle software. The sources and reporting note that any deal that would bring advanced Chinese vehicle technologies into the U.S. market is likely to draw close scrutiny from the Trump administration and from some members of Congress.
The discussion of Chinese technology in the context of global auto competition has been a public focus for Ford's leadership. CEO Jim Farley has repeatedly highlighted a need to close gaps with competitors in areas such as connected-vehicle technology and autonomous driving. In comments at a public forum last year, Farley described China's lead in electric and connected-vehicle technology as "the most humbling thing I have ever seen." He also addressed whether a potential joint venture with a Chinese automaker would be blocked by the U.S. president, saying: "I don't think so. I think as long as it has the right guardrails and we think about it the right way, no, I've found openness throughout the government to do this, because I think they know it's required."
Why Europe is central to the talks
Building some vehicles in Ford's European facilities could allow Geely to avoid European Union tariffs on China-made electric vehicles. In 2024 the EU imposed provisional tariffs of up to 37.6% on imported Chinese EVs, citing concerns about a potential flood of unfairly subsidized cars. One person familiar with the negotiations identified Ford's plant in Valencia, Spain as the most likely European factory to be involved in the talks.
The strategy of using foreign factories and networks to access new markets is not unique to Geely. Several Chinese automakers have pursued production and sales alliances in Europe: Leapmotor will have vehicles built at a Stellantis plant in Spain under a joint venture, and suppliers and Chinese automakers such as Guangzhou Automobile Group and Xpeng have arrangements to assemble an electric model at a Magna International facility in Austria.
Geely itself has struck production partnerships with Renault in South Korea and Brazil to build and sell cars based on Geely technologies using Renault factories and sales channels. Those tie-ups appear to have had commercial benefits: Renault-branded car sales outside Europe rose 11% in 2025 from a year earlier, compared with a 0.6% decline in 2024, according to the reporting provided to reporters.
Partnerships, sensitivities and precedent
Farley has been publicly supportive of partnerships as a route to faster technology adoption; Ford recently agreed an EV production deal in Europe with Renault. Yet any commercial alliance involving vehicles or advanced technologies intended for the U.S. market would face heightened political scrutiny. Lawmakers previously criticized Ford's licensing of EV battery technology from Chinese battery maker CATL for a Michigan plant, illustrating the sensitivity around cross-border technology transfers.
On the regulatory front, proposed rules drafted under the Biden administration included a Commerce Department restriction banning the use of communications technology and services from China and other identified "adversary" countries in connected vehicles sold and used in the U.S., on national security grounds. The Trump administration recently moved to remove Elizabeth "Liz" Cannon, a Commerce Department official whose office had led efforts to restrict Chinese cars and related technologies from entering the U.S. market. Those rules remain in place and the current administration has not signaled that it intends to change them. In public comments last month, President Trump said he would welcome a Chinese automaker that wanted to build cars in the U.S. if it brought investment and jobs.
Geely's profile and broader moves
Geely Auto, which includes the Zeekr and Lynk & Co brands, posted a 39% jump in sales in 2025 to just over 3 million vehicles, according to the reporting noted by sources. Counting affiliates such as Volvo Cars and Lotus, Geely is the second-largest Chinese automaker behind BYD. Under founder Li Shufu, Geely has pursued numerous international partnerships and acquisitions. One notable past transaction was the purchase of Volvo from Ford in 2010 for $1.8 billion.
Separately, last week reports suggested Ford and consumer electronics company Xiaomi held talks about a potential arrangement that would have allowed Xiaomi to manufacture EVs in the U.S.; Ford and Xiaomi both said those reports were inaccurate.
What remains uncertain
Numerous aspects of the discussions between Ford and Geely remain unresolved or unclear. Sources described the talks as private and ongoing, and it is not known whether negotiations will yield a formal agreement or what the full geographic scope of any deal would be. The discussions encompass manufacturing, shared technology frameworks and regulatory considerations, but participants cautioned that some talks may not lead to a transaction.
As the companies continue to deliberate, regulatory, political and commercial considerations will shape any potential outcome. Stakeholders in the automotive sector - including vehicle manufacturers, suppliers, and policymakers - will be watching to see whether an agreement emerges and how it navigates tariffs, national security concerns and competitive dynamics in connected and autonomous vehicle technology.