Ford Geely Partnership Talks Focus on Europe Manufacturing and Technology Sharing

Ford Motor Co. and China’s Geely Auto are in discussions over a possible collaboration, according to people familiar with the matter, as global automakers reassess strategies to manage tariffs while sharing technology and manufacturing investments. The Ford Geely partnership reflects a broader industry shift toward cooperation to remain competitive in a rapidly evolving automotive landscape.

European manufacturing discussions move forward

Talks between the two companies include the possibility of Geely using Ford’s factory capacity in Europe to produce vehicles for the regional market. People familiar with the discussions said Ford’s Valencia plant in Spain is the most likely site under consideration, with manufacturing-related negotiations described as more advanced than other areas.

Factory utilization and cost efficiency

The European manufacturing element is seen as a way to improve plant utilization while lowering per-unit costs. By sharing existing capacity, both companies could reduce capital expenditure and respond more flexibly to market demand, a priority as European regulations and cost pressures continue to tighten for automakers operating in the region.

Technology collaboration and ongoing negotiations

Beyond manufacturing, the companies have also discussed a broader framework for sharing vehicle technologies, including automated driving systems, according to people with knowledge of the talks. Ford sent a delegation to China in the first week of February to advance discussions, following late-January meetings in Michigan with senior Geely executives. Negotiations between Ford and Geely have been underway for several months, said people familiar with the matter. While Geely declined to comment, Ford acknowledged the discussions, stating, "We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don't." Ford CEO Jim Farley has publicly emphasized the need for the company to close its competitive gap with Chinese automakers. Speaking at the Aspen Ideas Festival in 2025, Farley addressed questions about whether President Trump might block a potential joint venture with a Chinese OEM. “I don’t think so," Farley said. "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."