Reuters: Ford, Geely in talks for EU manufacturing, tech sharing

Ford and Geely Holding Group are within the midst of superior talks a few potential partnership centred on utilizing Ford’s manufacturing unit area in Europe to supply the latter’s autos for the area, in addition to potential expertise sharing. Eight sources advised Reuters for a 4 February report {that a} delegation of Ford executives visited China this week to debate alternatives together with using its meeting plant in Valencia, Spain.

This was preceded by prior conferences in late January in Michigan between senior Geely executives and Ford management. The talks on European manufacturing are mentioned to be extra superior than these a few potential framework for shared car applied sciences. Sources additionally indicated to Reuters that among the many shared applied sciences might be autonomous driving.

Geely utilizing Ford’s plant in Valencia can be mutually useful for each automakers. For the previous, it will permit electrical autos to be offered within the European market with out dealing with hefty tariffs of as much as 37.6%, as is the case when importing from China. For the latter, it merely will increase manufacturing unit utilisation: Valencia produced solely the Ford Kuga SUV in 2024 with output doubtless under 1 / 4 of its 400,000-unit annual capability.

In an announcement to ReutersFord didn’t deny the rumours. “(We’ve) discussions with numerous corporations on a regular basis on a wide range of matters,” a spokesperson remarked. “Generally they materialise, typically they don’t.” Sources corroborated that the talks could quantity to nothing. Geely declined to touch upon the matter fully.

Geely, which already produces automobiles in Europe below the Volvo Automobiles model, is way from the one Chinese language automaker to construct a producing presence in Europe. BYD has vegetation below development in each Hungary and Turkey, with the previous slated to start mass manufacturing in early 2026. Leapmotor is becoming a member of up with its majority backer Stellantis to supply autos at an current plant in Spain, whereas GAC and Xpeng are leveraging native contract manufacturing through Magna to make automobiles. Fellow Geely model Polestar can also be shifting into Europe, with sequence manufacturing of the Polestar 7 slated to start in Slovakia throughout 2028.

Ford Chief Government Jim Farley’s fixation on Chinese language automakers is nothing new—certainly, he has been talking about them each in fawning phrases and as an existential menace for a while. Throughout an interview at 2025’s Aspen Concepts Pageant, Farley described the nation’s lead in EVs and linked automotive expertise “essentially the most humbling factor I’ve ever seen”. In the identical interview he fielded a query about whether or not the Trump administration would block a possible three way partnership between his firm and a Chinese language automaker; to this he famous there was an “openness all through the federal government to do that, as a result of I believe they understand it’s required”.

Simply a number of days prior, it was reported by the Monetary Instances that Ford was additionally in talks with Chinese language smartphone maker-come-automaker Xiaomi a few potential partnership for the US market. The association would have seen the 2 automakers collaborate to supply EVs for the US market. Talks have been mentioned to be at a preliminary stage, and have been subsequently rejected fully by each events.

In an announcement to FTXiaomi maintained it “doesn’t promote its services and products within the US, and isn’t negotiating to take action”. Chinese language automakers have been successfully shut out of the US market on account of insurmountable 100% tariffs and restrictions on knowledge assortment and citing nationwide safety dangers from knowledge assortment and car software program.

Elsewhere, Geely has partnered with Renault in South Korea and Brazil to supply and promote automobiles constructed on Geely applied sciences utilizing the French automaker’s factories and gross sales community. The automaker posted a 39% leap in gross sales in 2025 to barely greater than three million autos, and has raised its gross sales goal for 2026 to three.45 million.