Ford Motor Company and China’s Geely are reported to be in talks about a potential manufacturing partnership that would involve Geely using Ford’s European factories to produce vehicles intended for the regional market. People familiar with the discussions say the companies have also explored cooperation on automated driving technology.
Sources describe the manufacturing element of the talks as the most advanced, and indicate that negotiations between the two automakers have been ongoing for months. The discussions come after Ford announced it was restructuring its operations in Europe and formed a collaboration with Renault to jointly develop small, inexpensive electric vehicles aimed at that market.
Industry observers note that traditional automakers, including Ford, are contending with a surge of competition from Chinese manufacturers in overseas markets. Building Geely models in Ford’s European plants could provide a route for Geely to avoid import tariffs on vehicles produced in China and shipped into Europe.
Ford’s chief executive, Jim Farley, has been pushing to narrow the competitive gap with Chinese rivals and has emphasized the need for additional partnerships to help pursue that objective. Those remarks align with the broader push within the company to adapt its European strategy and to seek collaborative options that address cost and competitiveness challenges.
The conversations between Ford and Geely include two main strands: the use of Ford’s production capacity in Europe to assemble vehicles for European consumers, and technical cooperation on automated driving capabilities. While the manufacturing proposals are reportedly the furthest along, details on any definitive agreements, timelines or specific product plans have not been disclosed by the parties.
For now, the talks represent a potential shift in how legacy automakers and emerging Chinese groups approach access to key regional markets, with manufacturing location and technology partnerships both serving as strategic levers.
Summary
Ford and Geely are negotiating a manufacturing partnership that could see vehicles for the European market produced in Ford’s European factories. The discussions, which have been proceeding for months, also touch on automated driving, with manufacturing talks described as the most advanced. These developments follow Ford’s overhaul of its European operations and its collaboration with Renault on small, low-cost electric vehicles.