Asger Risom
Fresh talks between a legacy U.S. automaker and a major Chinese group are highlighting how fast the global car industry is changing.Rising costs, trade barriers and rapid technological shifts are pushing rivals toward unlikely conversations.
Ford Motor Co. and China’s Geely are in discussions over a potential manufacturing and technology partnership, according to people familiar with the matter, as automakers look for new ways to share costs and stay competitive.
The talks, which are ongoing and not guaranteed to result in a deal, come as global carmakers face mounting pressure from electrification, automation and geopolitical trade barriers.
Manufacturing focus
According to Reuters, one key area of discussion involves Geely using Ford’s factory space in Europe to build vehicles for the region. Three people familiar with the talks said the manufacturing element is among the most advanced aspects of the negotiations.
Ford recently sent a delegation to China to deepen discussions, following meetings in Michigan between senior executives from both companies, sources told Reuters. One person said Ford’s Valencia plant in Spain is the most likely facility under consideration.
Producing vehicles in Europe would help Geely avoid steep European Union tariffs on Chinese-made electric vehicles. In 2024, the EU imposed provisional duties of up to 37.6% on imported Chinese EVs, citing concerns about state subsidies.
Technology discussions
Beyond manufacturing, Ford and Geely have also explored frameworks for sharing vehicle technologies, including systems related to automated driving, two sources told Reuters.
Such collaboration could help Ford accelerate progress in connected-car software and autonomy, areas where Chinese automakers have gained a reputation for rapid development and lower costs.
Ford said in a statement: “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don’t.” Geely declined to comment.
Political sensitivities
Any partnership involving Chinese technology carries political risk for Ford, particularly in the United States. Chinese automakers are effectively barred from the U.S. market due to tariffs and restrictions introduced under the Biden administration, citing national security concerns around data and vehicle software.
Rules drafted by the U.S. Commerce Department ban the use of communication technologies from so-called adversary countries in connected vehicles sold domestically. Those rules remain in force under the Trump administration.
Ford CEO Jim Farley has nevertheless argued that partnerships are essential. At the Aspen Ideas Festival last year, he described China’s lead in electric and connected vehicles as “the most humbling thing I have ever seen,” according to Reuters.
A wider trend
Geely has pursued similar strategies elsewhere, partnering with Renault in South Korea and Brazil to produce vehicles using Geely technology in Renault factories. Renault reported that sales outside Europe rose 11% in 2025, compared with a decline the previous year.
Other Chinese automakers have also moved production to Europe. Leapmotor vehicles are set to be built at a Stellantis plant in Spain, while Xpeng and Guangzhou Automobile Group have partnered with Magna International in Austria.
The Ford–Geely talks underscore a broader shift in the auto industry, where cooperation across borders is increasingly seen as a necessity rather than an exception.
Sources: Reuters
