DETROIT, Feb. 4, 2026, 10:16 a.m. EST
- Sources close to the discussions reveal that Ford and China’s Geely are in talks about a possible manufacturing and technology partnership.
- Discussions cover Geely potentially utilizing Ford’s European factory space and outline a framework for collaborating on vehicle technology, including automated driving
- Any tech partnership involving the U.S. risks scrutiny under regulations aimed at Chinese vehicle software and data
Ford Motor and China’s Geely are reportedly in talks about a partnership that might involve Geely producing vehicles at Ford’s European plants, according to eight sources close to the negotiations. The Ford facility in Valencia, Spain, is believed to be the prime candidate for this potential collaboration, said one insider. (Reuters)
The talks come at a sensitive time for the European Union’s auto sector, as Chinese brands ramp up their presence and policies grow more stringent. This year, the EU slapped provisional tariffs as high as 37.6% on imported Chinese electric vehicles, citing concerns over unfair subsidies and a flood of low-cost models.
Ford’s message is straightforward: empty factory floors burn cash, and Europe has been tough to crack. The company has slashed jobs and trimmed its passenger-car range to reboot its operations. At the same time, it’s pouring $2 billion into turning its Cologne plant into an electric vehicle hub, the Financial Times reported. (Financial Times)
According to five sources, talks have stretched over several months and recently involved high-level meetings in Michigan between Geely’s top executives and Ford’s leadership. This week, Ford dispatched a team to China to push negotiations further, two sources added. Geely chose not to comment. Ford responded with: “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don’t.”
Ford’s stock climbed roughly 1.1% during morning trading.
People familiar with the matter say a manufacturing deal within the EU could let Geely dodge the bloc’s tariffs on EVs made in China. Several other Chinese automakers are also eyeing European production to cut trade risks. Leapmotor, for instance, aims to start building cars at a joint venture plant in Spain.
The talks go beyond factory floors. According to two sources familiar with the discussions, the companies have also explored a possible framework for shared vehicle technologies, including automated driving — a term they use for systems capable of steering, braking, and accelerating with minimal human intervention.
Ford CEO Jim Farley insists that American and European automakers must catch up to China in the race for electric and software-driven “connected” vehicles—cars equipped with built-in communications for updates, navigation, and driver assistance. At last year’s Aspen Ideas Festival, Farley described China’s dominance in electric and connected-vehicle tech as “the most humbling thing I have ever seen.”
Trying to extend the talks to the U.S. faces immediate hurdles from politics and regulation. Chinese automakers are mostly blocked from entering the American market due to tariffs and restrictions introduced by the Biden administration targeting data collection and vehicle software. Reuters also reported that the Commerce Department is considering rules banning some China-linked communications tech in connected vehicles sold and operated in the U.S.
Farley said he doesn’t believe President Donald Trump would outright block a Ford joint venture with a Chinese automaker, but he called it a tightrope walk. “I don’t think so,” Farley said. “As long as there are proper guardrails and we approach it correctly, no. I’ve seen openness across the government on this, because they recognize it’s necessary.”
Geely isn’t a minor player. Geely Auto, covering Zeekr and Lynk & Co, saw sales soar 39% in 2025, topping 3 million vehicles, Reuters reported. The larger group also owns Volvo Cars and Lotus. Geely acquired Volvo from Ford back in 2010 for $1.8 billion.
Ford’s EV presence in Europe remains scattered and evolving. The Mustang Mach-E rolls in from Mexico, while the Puma Gen-E is made in Craiova, Romania. Cologne has been revamped to churn out electric Explorers and Capris, using a VW-supplied electric platform. On top of that, Ford sealed a fresh deal with Renault to build small EVs based on Renault’s AmpR Small platform, electrive reported. (Electrive)
Nothing is signed yet. The discussions remain private and could fall apart at any moment. Plus, sharing technology beyond basic manufacturing would trigger legal hurdles and political battles in the U.S., where lawmakers have already slammed Ford for considering Chinese battery tech in Michigan.
In Europe, a deal aiding a Chinese firm’s growth might face backlash if trade tensions flare up again or if EV demand weakens—and Ford’s extra capacity isn’t as ample as it seems.
