US automaker Ford Motor Co. and Chinese brand Geely Auto are currently in discussions about a potential partnership to share technology and production costs, Reuters reported Wednesday citing people familiar with the matter.
The conversations between both companies are centered on Geely‘s possibility to utilize Ford‘s factory space in Europe to produce vehicles for the region.
One source said that the US company’s plant in Valencia, Spain, is the most likely option.
Two people close to the situation confirmed that the brands have also discussed the potential framework for shared vehicle technologies, such as automated driving.
The discussions focused on production in Europe are more advanced, according to some of the people with knowledge of the matter.
Five sources cited by the outlet clarified that there have been conversations between Geely and Ford “for months.”
Following last week’s Michigan meeting between both companies’ executives, the Detroit-based automaker sent a delegation to China this week to continue negotiations.
While Geely declined to comment on the discussions, Ford responded to Reuters: “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don’t.”
Due to high tariffs imposed on Chinese vehicles by both Biden and Trump, Chinese automakers have effectively been barred from the US market.
Therefore, Reuters reported that the Ford and Geely partnership will “likely draw scrutiny from the Trump administration and some lawmakers.”
Ford Partnerships
Last Saturday, citing sources familiar with the matter, the Financial Times reported that Ford and Xiaomi had been discussing a joint venture to allow the Chinese tech giant to produce EVs in the US.
A day later, both companies denied the report.
Last December, the US firm formed a strategic partnership with Renault Group, allowing two Ford EVs to be produced in the group’s Northern France plant.
Back in February 2023, Ford agreed to build a battery factory in Michigan with technology from the Chinese battery maker CATL, a decision which a US lawmaker scrutinized last week.
Two weeks ago, in an interview with Bloomberg, the automaker’s CEO Jim Farley reaffirmed the company’s strategy.
“We have a licensing agreement, but we feel it’s better to build these batteries in the United States with American workers, with our own Ford workers and understand the IP than import them like they’re being done today,” Farley stated.
“The best way to compete with China is to get close to the IP and then run the plants at Ford,” the CEO added.
Geely and Other Chinese Partnerships
Last month, Geely also partnered with the Renault Group, as part of Geely Holding‘s new five-year strategic plan, intending to “create a new paradigm of open, collaborative, and mutually beneficial brand cooperation.”
Under the agreement, the companies jointly manufacture and sell vehicles on Geely platforms, utilizing Renault’s production facilities and retail networks in South Korea and Brazil.
To avoid the European Union’s tariffs on EVs made in China, several other Chinese automakers have decided to start producing their units in the Old Continent.
Late last month, BYD began trial production in its first European plant in Hungary, and is preparing to start production in a new $1 billion EV factory in Turkey.
The Shenzhen-based company is considering Spain and Portugal for its third European factory.
XPeng has been building electric models at its Graz plant in Austria, in cooperation with Magna Steyr, since last September.
Additionally, Leapmotor and its backer Stellantis Group agreed last August to build the Chinese brand’s new B10 compact SUV at the group’s plant in Spain by the end of this year.
Ford’s 2025 US Sales
In the US, Ford delivered 2,204,124 vehicles last year, achieving a market share of 13.2%
The figures represented a 6% year-over-year increase.
The automaker maintained its leading position in the truck sales segment in the US market.
Last quarter, 545,216 Ford units across all powertrains were registered.
EVs accounted for 14,513 units, halving from the 30,176 units registered a year prior.
Geely’s 2025 Sales
Across all its brands, Geely Holding sold a total of 4,116,321 units, marking a new yearly record.
The figures rose by 26% compared to 2024’s 3,336,534 deliveries.
The group owns major automakers, including Geely, Volvo, Polestar, Lotus Cars, Zeekr, and brands such as Lynk&Co and Farizon. It also has stakes in Mercedes-Benz, the Malaysian Proton Cars, and the local manufacturer DRB-HICOM.
New-energy vehicles (NEVs) – which include battery-electric (BEV), hybrid electric (HEV), and plug-in hybrid vehicles (PHEV) – accounted for 2,293,099 units, jumping 58% year-over-year.
The powertrain represented more than half (56%) of the Group’s total sales.
The main Geely Auto brand delivered 3,024,567 vehicles – a 39% year-on-year increase compared to 2024.
Geely‘s NEV sales surged 90% year-on-year to 1,687,767 units, representing 55.8% of total deliveries across all powertrains
This year, the Chinese automaker is targeting total sales of 3.45 million vehicles, up 14% from 2025, with 2.22 million expected to be NEVs.
