Ford and Geely Discuss Partnership in Manufacturing and Technology, Sources Reveal

• Ford sent a delegation to China this week to intensify months-long discussions, following meetings in Michigan with senior Geely executives last week. Ford's Valencia, Spain plant is likely the European facility under consideration.
• Manufacturing in Europe would help Geely avoid EU tariffs of up to 37.6% on Chinese-made EVs, while technology collaboration could help Ford close competitive gaps in connected-vehicle technology and autonomy where Chinese automakers lead.
• Any deal involving the U.S. market would face significant scrutiny given Biden-era restrictions banning Chinese communication technology in connected vehicles, though Trump recently indicated openness to Chinese manufacturers building cars in the U.S. with proper investment and jobs.

Ford-Geely Partnership Talks Summary

Key Development: Ford and China's Geely are in advanced partnership discussions, with talks focused on European manufacturing and potential technology collaboration, according to eight sources familiar with the negotiations.

Main Details

• Geely would utilize Ford's European factory space, likely the Valencia, Spain plant, to produce vehicles for the regional market
• European manufacturing discussions are most advanced; Ford sent a delegation to China this week following meetings in Michigan last week
• Talks have been ongoing for months but scope and deal certainty remain unclear
• Both companies declined to confirm specifics

Strategic Rationale

• Ford aims to close competitive gaps in connected-vehicle technology and autonomy where Chinese automakers lead
• CEO Jim Farley previously called China's EV and connected-tech leadership "the most humbling thing I have ever seen"
• Manufacturing in Europe would help Geely avoid EU tariffs up to 37.6% on Chinese-made EVs imposed in 2024
• Partnerships help automakers defray rising development costs

Market Context

• Geely posted 39% sales growth in 2025, reaching 3 million vehicles; second-largest Chinese automaker after BYD
• Geely previously acquired Volvo from Ford for $1.8 billion in 2010
• Similar partnerships emerging: Leapmotor-Stellantis in Spain, Geely-Renault collaboration boosted Renault's non-European sales 11% in 2025

Regulatory Challenges

• Any U.S. market deal would face scrutiny due to national security concerns over Chinese vehicle technology and data collection
• Biden-era Commerce Department rules ban Chinese communication technology in U.S.-connected vehicles
• Trump administration maintains these restrictions, though Trump expressed openness to Chinese manufacturers investing domestically