Media reports stated that American company Ford and Chinese company Geely are holding advanced talks regarding a potential partnership involving manufacturing and technology exchange, at a time when the electric vehicle sector is witnessing increasing competition and growing pressure to reduce costs.
According to a report, the two companies are discussing a scenario that would allow Geely to use unused space in Ford’s European plants to produce vehicles for the European market, within a broader framework that may include technical cooperation. Sources indicated that the European manufacturing aspect is the most advanced so far compared to technology-sharing terms.
The reports stated that Ford sent a delegation to China this week, following meetings held between the leadership of the two companies last week.
Five sources confirmed that talks between the two sides have been ongoing for several months, without disclosing precise details about their nature or potential outcomes.
Observers believe this move could help Geely avoid the high tariffs imposed on electric vehicles imported from China, through local production within Europe.
In return, Ford could benefit from improving the utilization of its unused European production capacity and generating returns from plants suffering from low demand.
The reports added that the discussions also included a framework for sharing some technologies, including Automated Driving systems and Connected Vehicle technologies, although this path is still less advanced compared to manufacturing negotiations.
Neither company has officially confirmed the details of these talks, and it is not yet clear whether they will lead to a final agreement or what its scope would be if reached. This comes after a previous report pointed to potential talks between Ford and Chinese company Xiaomi.
These developments fall within a broader context witnessing an accelerated global shift towards electric vehicles, where Western companies like Ford face challenges related to reducing production costs and expanding in this field, while Chinese companies, led by Geely, continue to expand their international presence thanks to their rapid growth and technical advancement.
Several brands owned by Geely are sold, including Volvo and Lotus, however, high tariffs and restrictions on vehicles equipped with Chinese software have practically limited sales of vehicles manufactured in China within the market.
Ford
Ford is an American automobile manufacturer founded by Henry Ford in 1903. It revolutionized the industry with the introduction of the moving assembly line for the Model T, making cars affordable for the masses and profoundly shaping modern industrial manufacturing.
Geely
Geely is a Chinese multinational automotive manufacturing company, founded in 1986 by Li Shufu. It began as a refrigerator parts maker before expanding into motorcycles and eventually automobiles, growing into one of China’s largest private car manufacturers. The company gained significant global prominence through its acquisition of Volvo Cars in 2010.
European plants
“European plants” refers to the diverse flora native to Europe, which has evolved over millennia across varied climates and landscapes. Many species have significant historical ties to regional agriculture, medicine, and cultural traditions, such as the olive tree in Mediterranean cultures or the oak in Celtic and Germanic folklore. This botanical heritage has been extensively studied and classified, notably during the Enlightenment and subsequent botanical explorations.
Europe
Europe is a continent with a rich and complex history, shaped by ancient civilizations like Greece and Rome, the Middle Ages, the Renaissance, and periods of both conflict and cooperation, such as the two World Wars and the subsequent formation of the European Union. It is home to a vast array of cultural sites, from the Acropolis in Athens to the historic centers of cities like Rome, Prague, and Paris, reflecting its diverse artistic, architectural, and intellectual heritage.
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural achievements. In the modern era, it has developed into a major global power with a unique blend of ancient traditions and rapid technological advancement.
European market
The European market, often referring to the European Union’s single market, is an economic area established to allow the free movement of goods, capital, services, and people. Its foundations were laid by the 1957 Treaty of Rome, which created the European Economic Community, and it was formally completed in 1993. This integrated market is a cornerstone of the EU, designed to increase economic cooperation and prosperity among member states.
Volvo
Volvo is a Swedish automotive manufacturing company founded in 1927, originally known for producing durable cars and commercial vehicles. The brand has become globally recognized for its emphasis on safety innovations, such as introducing the three-point seatbelt in 1959.
Lotus
The Lotus Temple in New Delhi, India, is a Bahá’í House of Worship completed in 1986, renowned for its distinctive flower-like architecture. It is open to people of all faiths and has become a major architectural landmark and tourist attraction, symbolizing the Bahá’í principle of the oneness of humanity.
