Production Media: Ford and Geely Explore Partnership

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According to media reports, Ford and Geely are discussing cooperation on production and technology. This would allow Geely to build electric cars in Europe - and sell them without customs duties.

Ford and Chinese car manufacturer Geely are apparently discussing a possible partnership. This was reported by the news agency Reuters, citing eight people familiar with the ongoing negotiations. According to the report, Ford and Geely want to share technology and production costs.

Specifically, Geely is to use Ford's production space in Europe for vehicle production for the European market. The talks are most likely to involve the Ford plant in Valencia, Spain, a person familiar with the matter told the news agency. According to the report, discussions are also being held about possible framework conditions for shared vehicle technologies, including those for automated driving.

Talks on the European manufacturing industry have progressed further, said two insiders. Ford had sent a delegation to China this week for further talks. According to Reuters, meetings between high-ranking Geely managers and Ford representatives had already taken place in Michigan.

Jim Farley Impressed by Chinese Technology

Cooperation between car manufacturers could help Ford with connected vehicle technology and autonomous driving. Ford CEO Jim Farley has repeatedly stated that his company needs to close the competitive gap with China. But Farley went further, describing China's lead in electric vehicles and connected car technology as "the most humiliating thing I've ever seen" in an interview last year.

Geely and Ford have apparently been negotiating for months, sources tell the news agency. Geely declined to comment, according to Reuters. Ford said: "We are constantly in talks with many companies on various topics. Sometimes this leads to concrete results, sometimes not."

What is the US government's Position on the Negotiations?

Chinese car manufacturers are effectively shut out of the US market due to tariffs and restrictions dating back to the time of US President Joe Biden. According to Reuters, agreements that bring Chinese vehicle technology to the US market would likely attract the critical attention of the current administration.

However, Jim Farley does not see this as a problem. According to Reuters, he responded to questions about whether US President Donald Trump would prevent a possible joint venture between Ford and a Chinese car manufacturer with: "I don't think so". "I think as long as the right framework is in place and we go about it the right way, no, I've seen openness to it throughout the administration because I think they know it's necessary."

Chinese Technology in Cars Banned in the USA

Under US President Joe Biden, the US Department of Commerce banned the use of communication technologies and services from China and other "adversarial" countries in connected vehicles sold and used in the US. Reuters reported in January that the Trump administration had recently fired a Commerce Department official - whose office led efforts to keep Chinese cars and technology out of the US market.

The Trump administration does not appear to be seeking to correct the rules set by the Biden administration. The current US president reiterated last month that he would welcome a Chinese car manufacturer wanting to produce cars in the US, provided it creates investment and jobs.

Farley has spoken out in favor of the need for partnerships. Ford has also recently signed a contract with Renault. The content is the production of electric vehicles in Europe. According to Reuters, Ford had previously licensed EV battery technologies from Chinese battery manufacturer CATL for a plant in Michigan.

Geely's E-Cars Without Customs Duties in Europe

Geely could circumvent EU tariffs on electric vehicles manufactured in China with European vehicle production. In 2024, the EU introduced provisional tariffs of up to 37.6% on imported Chinese electric vehicles.

The Zeekr and Lynk & Co. brands belong to Geely Auto. According to Reuters, the company sold 39 percent more cars last year, just over three million vehicles. Including other subsidiary brands such as Volvo Cars and Lotus, Geely is the second-largest Chinese car manufacturer after BYD.

Under the leadership of founder Li Shufu, Geely has actively sought foreign partnerships, according to the news agency. In 2010, for example, Geely bought Volvo from Ford for 1.8 billion US dollars. Last week, the Financial Times reported that Ford and Xiaomi were in talks about a partnership, according to insiders. This would have allowed Xiaomi to produce e-cars in the USA. However, Ford and Xiaomi rejected the reports as inaccurate, according to Reuters.