Ford is reportedly engaged in discussions with several Chinese automakers, including Geely, Xiaomi, and BYD, regarding the production of vehicles at its European factories. According to sources familiar with the matter, these talks, particularly with Geely, have progressed significantly, potentially allowing Geely to utilize Ford’s spare production capacity in Europe.
In recent years, Ford has reduced its manufacturing footprint in Europe, yet it continues to operate facilities in Valencia, Spain, Cologne, Germany, and a joint venture plant in Romania. If an agreement is reached, it would enable Geely to avoid tariffs of 10 percent on imported vehicles and punitive tariffs of up to 35 percent on electric vehicles produced in China.
The discussions between Ford and Geely have reportedly extended to technology sharing, particularly in the realm of autonomous driving systems. Both companies are already involved in collaborations with other manufacturers. Ford’s partnership with Volkswagen includes shared platforms for models like the Ford Ranger and Volkswagen Amarok, as well as the use of Volkswagen’s MEB architecture for Ford’s Explorer EV and Capri EV, designed specifically for the European market.
In addition to its ongoing talks with Geely, Ford announced a new collaboration with Renault that will see the French automaker producing electric vehicles in the Fiesta and Puma classes for Ford starting in 2028. Meanwhile, Renault has been working with Geely since 2021. This partnership includes joint ventures that focus on combustion engine assets and the production of models like the latest Koleos and Filante, which are based on Geely platforms.
This potential partnership between Ford and Geely is not unprecedented, as Geely acquired Volvo Cars from Ford in 2010 for $1.3 billion. While Geely has not commented on the current discussions, Ford spokespersons have stated, “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don’t.”
According to the Financial Times, Ford has also held preliminary talks with Xiaomi about manufacturing electric vehicles in the United States. Although both Ford and Xiaomi have denied these reports, stating that discussions are not taking place, the ongoing dialogue highlights the shifting landscape of the automotive industry, particularly concerning electric vehicle production.
The current U.S. tariff structure imposes a 100 percent tariff on all Chinese-made electric vehicles, effectively barring imports except for luxury models like the Lotus Eletre. If Ford were to produce electric vehicles domestically, it could circumvent these tariffs, although such a move might encounter political resistance.
Ford’s CEO, Jim Farley, has previously praised the Xiaomi SU7, which he tested as an evaluation vehicle for six months. He has expressed interest in exploring partnerships focused on intellectual property, recognizing the competitive edge that emerging technologies could provide.
In addition to its potential collaborations with Geely and Xiaomi, Ford maintains longstanding partnerships with Chinese manufacturers Changan and JMC. Vehicles produced through these joint ventures are marketed in various regions, including the Middle East, Africa, and Latin America, featuring models such as the Mondeo/Taurus, Territory, and Edge.
The automotive industry is witnessing a significant evolution, with traditional manufacturers like Ford seeking strategic alliances to enhance their competitive advantage in a rapidly changing market landscape.
