Automotive News Europe — 2026-02-04
Automotive Industry
Ford and China’s Geely are in advanced discussions about a potential partnership focused on European manufacturing, as global automakers seek to share rising technology and production costs, according to people familiar with the matter.
The talks are centered on Geely using Ford’s factory capacity in Europe to produce vehicles for the regional market, three sources said. The most likely site is Ford’s plant in Valencia, Spain, according to a person with knowledge of the discussions.
Such an arrangement would allow Geely to build vehicles inside the European Union, helping the Chinese automaker avoid steep European Union tariffs on China-made electric vehicles.
Ford and Geely also have discussed the potential framework for shared vehicle technologies, including for automated driving, sources said. Discussions around European manufacturing are further along than other areas of cooperation between the two automakers, they said.
Ford recently sent a delegation to China to advance negotiations, following meetings in Michigan between senior Geely executives and Ford leadership, source said.
Any partnership in Europe would come as Chinese automakers accelerate efforts to establish local production to serve the EU market.
Last year, the EU imposed provisional tariffs of up to 37.6 percent on battery-electric vehicles imported from China, citing concerns about unfair subsidies. Producing vehicles at Ford’s Spanish plant would likely allow Geely to bypass those duties.
Geely would join other brands building cars in Europe
Several Chinese automakers have already moved to localize production in Europe. Leapmotor vehicles will be built at a Stellantis plant in Spain, while Chinese brands Xpeng and GAC are producing vehicles in Magna Steyr’s contract manufacturing plant in Austria. Chery Auto builds models in a former Nissan plant in Barcelona, Spain.
Ford currently only builds one model in Valencia, the Kuga compact SUV, whose European sales were 98,376 in 2025, according to Dataforce market researchers. The automaker will add a second SUV using the Bronco nameplate in 2027, Automotive News Europe has reported.
For Ford, a deal with Geely could also help improve factory utilization in Europe and support its broader strategy of pursuing partnerships to reduce costs and speed access to new technologies.
Ford, Geely also partner with Renault
Ford recently struck an electric vehicle production agreement in Europe with Renault, underscoring its growing emphasis on collaboration in the region. Renault will build two battery-electric cars for Ford using its small electric platform, which underpins the Renault 4 and Renault 5 as well as the Nissan Micra.
Geely has used a similar strategy in other markets, partnering with Renault in South Korea and Brazil to produce vehicles using Geely technology at Renault facilities. That approach has helped boost Renault’s sales outside Europe.
While Ford and Geely have discussed technology sharing more broadly, any plans involving the U.S. market would likely face regulatory and political scrutiny. However, people familiar with the talks said the current focus remains on Europe, where local manufacturing offers a clearer path forward.
Ford declined to comment on specific discussions, saying it routinely talks with other companies about potential partnerships. Geely declined to comment.
Geely is far behind MG and BYD
Geely’s sales are far behind Chinese rivals BYD and SAIC’s MG Motor in Europe. Geely brand’s European registrations were 3,533 last year, according to Dataforce.
MG’s European sales were 307,282 while BYD sold 186,568 vehicles. BYD is opening an assembly plant in Hungary this year while MG has said it is looking for a European production site.
Geely and Ford have past links. Zhejiang Geely Holding Group bought Volvo Cars from Ford in 2010.