Producing some vehicles at Ford’s European plants could help Geely avoid EU tariffs on electric vehicles manufactured in China, according to a report by Reuters. The news agency cites eight sources familiar with the negotiations, suggesting that these discussions are likely taking place.
However, the specifics of the negotiations remain unclear. According to three insiders, the talks focus on Geely using Ford’s production facilities in Europe for its own vehicles—particularly battery-electric cars, as imports from China into the EU face special tariffs. Two additional sources indicated that discussions have also covered potentially shared vehicle technologies, including automated driving.
Reuters, citing two insiders, reports that talks regarding European production are ‘more advanced.’ A Ford delegation is currently in China this week to ‘to intensify discussions.’ Previously, several meetings were held in Michigan to negotiate a potential collaboration, with these talks reportedly ongoing for months. Whether the US market was also discussed remains unclear, according to the Reuters report.
Ford produces EVs at multiple European plants
Ford responded to a request for comment but remained non-committal: “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialise, sometimes they don’t.” Geely declined to comment to Reuters.
The potential implications of any deal remain speculative at this stage. Ford is currently pursuing a multi-pronged approach to electric vehicles in Europe: the company offers the Mustang Mach-E, imported from Mexico, produces the Puma Gen-E in Craiova, Romania, based on its own platform, and has fully converted its Cologne plant to electric vehicle production. Currently, the Explorer and Capri are built there using Volkswagen’s MEB platform. In the future, Ford also plans to manufacture electric vehicles near Valencia, after the Spanish plant won out over the Saarlouis site for the allocation. Additionally, a new partnership with Renault was recently announced: the French manufacturer is expected to build small electric vehicles based on the AmpR Small platform for Ford, such as an electric successor to the Fiesta.
Although electric vehicle production in Cologne is reportedly underutilised, Reuters suggests that the talks with Geely are ‘most likely’ focused on the Valencia plant. Ford has yet to specify which models will be built there or which platform will be used. In summer 2024, when Ford abandoned its target of selling only electric vehicles in Europe by 2030, it referred to a ‘multi-energy platform’ for the Spanish plant.
It thus cannot be ruled out that Geely may contribute its own technology. Ford CEO Jim Farley has repeatedly expressed admiration for the technology of Chinese manufacturers in electric vehicles and connectivity—including his experiences with the Xiaomi SU7. Geely possesses several proprietary electric vehicle platforms and is also collaborating with Ford’s new partner, Renault, in the joint venture Horse Powertrain to develop internal combustion engines.
Farley has also repeatedly emphasised the importance of partnerships. In mid-January, it was revealed that the US manufacturer might source batteries from BYD for hybrid models. Last week, reports emerged about a potential US collaboration with Xiaomi—but both Ford and the Chinese manufacturer promptly denied these claims.
