For months, Ford and Geely have been discussing a potential partnership that would allow the Chinese automaker to use underutilized plant capacity in Europe. The two appear to be closing in on a deal that would involve more than just sharing manufacturing space. China is the clear leader in the auto industry's shift to software-defined electric vehicles, forcing Ford to reconsider its global business plans.
The rapid rise of Chinese automakers in Europe, the UK, and other major global auto markets has forced Ford to adapt and innovate to stay competitive. The company's CEO Jim Farley has repeatedly warned that Chinese EV manufacturers are an existential threat to Western brands. By partnering with them, Ford can potentially help narrow China's growing tech gap to keep pace in overseas markets.
Ford is reportedly closing in on a potential deal with Volvo's parent company, Zhejiang Geely Holding Group, which could involve sharing new technology, including automated driving and other advanced driver-assistance systems (ADAS) features. The talks are still ongoing, and no plans have been finalized. A partnership could benefit both Geely and Ford in the long run by using underutilized space in Europe to avoid tariffs on imported EVs from China.
For Ford, it could help gain an advantage as the American automaker aims to keep pace in the global shift to software-defined EVs. The news comes after a Financial Times report claimed Ford was in talks with China's Xiaomi about a partnership to build EVs in the US, which Ford and Xiaomi denied. Despite this, Ford is set to begin producing lithium iron phosphate (LFP) batteries at its new battery plant in Michigan in 2026, using licensed tech from China's CATL.
The lower-cost batteries will power electric vehicles based on Ford's new Universal EV Platform, with the first being a midsize pickup priced at around $30,000. The partnership also marks a return to Geely and Ford's history, as they already have a partnership in place through Volvo, which was acquired by Geely in 2010. The talks are still ongoing, and a deal could still fall through, but the potential partnership is a significant development in the global EV market.
This partnership would be a strategic move for Ford to stay competitive in the rapidly evolving EV market, where Chinese manufacturers are increasingly playing a dominant role. By sharing technology and resources, Ford can potentially narrow China's growing tech gap and maintain its position as a major player in the global automotive industry.
