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Ford is in talks with China’s Geely for a partnership in Europe as the US carmaker seeks to revive its struggling passenger vehicle business in the region through manufacturing and technology tie-ups.
The two companies have had discussions about Geely using the spare production capacity of Ford’s plants in Europe and a technology partnership that could see both companies building vehicles on the same platform, according to two people with knowledge of the situation.
Ford said it was “in conversations with lots of companies on a variety of topics, that is normal course of business”. Geely declined to comment on the talks, which were first reported by Reuters.
The discussions with Geely, which also owns Volvo Cars and Polestar, are part of a multiyear review of Ford’s strategy in Europe where it has struggled with the expensive transition to electric vehicles and high production costs.
In recent years, it has cut thousands of jobs in Germany and the UK and reduced the number of passenger vehicles in its line-up to focus on vans and more profitable areas of the highly competitive market.
Ford has invested $2bn to transform its Cologne plant in Germany to produce EVs but its factories in Europe remain underutilised. The US group has held talks with various other companies including BYD about using the plants, according to the people. BYD was not immediately available for comment.
For Geely, the partnership with Ford will allow it to use the US carmaker’s plants “at a relatively low cost” at a time when the Chinese group is seeking to expand vehicle sales under its own brand, according to one person with knowledge of the talks. It will also help Geely address the EU’s higher tariffs on EVs built in China.
“Ideally, Ford would continue selling cars in Europe under the Ford brand, while Geely sells under its own brand. Ultimately, though, the vehicles would be built on a shared platform,” the person added.
The person said a Geely executive recently visited Ford in Michigan to discuss the partnership.
As part of its bid to revive its European business, Ford has appointed Jim Baumbick, who used to head the group’s product development globally, and announced a new partnership with France’s Renault to jointly produce small electric cars and vans.
The FT has reported that Ford has also held talks with EV maker Xiaomi over a partnership in the US that could potentially pave the way for Chinese carmakers to gain a foothold in the world’s second-largest vehicle market. The two companies have denied holding the talks.
In Europe, western carmakers have increasingly turned to tie-ups with rivals amid an influx of affordable Chinese EVs and plug-in hybrids into Europe. Stellantis has also invested a 20 per cent stake in Leapmotor and has helped the Chinese start-up expand its sales in Europe.
Elsewhere, Renault has also partnered with Geely on a combustion-engine business and has collaborations in South Korea and Brazil.
When asked whether Ford would consider partnering with a Chinese rival as it announced its tie-up with Renault in December, chief executive Jim Farley said: “I think Ford remains very open and is very humble about what’s happening in Europe. We will always pick the right partners.”
