ford has reportedly held discussions with a number of Chinese automakers about producing their cars at various Blue Oval factories.
Multiple people quote Reuters Ford and Geely are reportedly in intensive discussions about a far-reaching partnership. Apparently discussions began months ago about Geely using some of Ford’s spare production capacity in its European factories.
Although Ford has significantly reduced its European manufacturing footprint over the past decade, the company still has plants in Valencia, Spain, and Cologne, Germany, as well as a joint venture plant in Romania.
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If Geely decides to build cars at a European Ford factory, it would avoid tariffs of 10 percent on all imported vehicles and punitive tariffs of up to 35 percent on electric vehicles made in China.
Discussions have reportedly expanded to include sharing vehicle technology, including those related to autonomous driving.
Ford and Geely both have ongoing partnerships with other automakers. As part of Ford and Volkswagen’s collaboration, the two have worked together on the Ford Ranger/Volkswagen Amarok, Volkswagen Caddy/Ford Transit Connect and Ford Transit Custom/Volkswagen Transporter.
Ford also uses the Volkswagen MEB architecture for its Explorer EV and Capri EV available in Europe.
Interestingly, Ford recently signed a deal with Renault that will see the French company produce Fiesta and Puma class electric cars for the Blue Oval starting in 2028.
Meanwhile, Renault has been working with Geely since 2021, with Renault South Korea now partially owned by Geely and building cars, including the latest Koleos and Filante, based on Geely platforms. Geely and Renault also have a joint venture company that houses all of their internal combustion engine assets.
Should an agreement be reached between Ford and Geely, it would not be the first transaction between the two companies, as Geely purchased Volvo Cars from Ford in 2010 for $1.3 billion.
Geely declined to comment on the report, while Ford told the news service: “We are constantly in discussions with many companies on a variety of issues. Sometimes they come to fruition, sometimes they don’t.”
Sources have revealed Financial Times Ford has also held preliminary discussions with Xiaomi about producing its electric vehicles in the US. According to the business newspaper, Ford has spoken to BYD and other unnamed Chinese automakers about collaborating on US production.
Both Ford and Xiaomi strenuously denied the report, with Ford telling the newspaper: “This story is completely false.”
Xiaomi was similarly candid, stating: “Reports that Xiaomi is discussing a joint venture with Ford Motor Co are false. Xiaomi does not sell or negotiate its products and services in the United States.”
Since the Biden administration, the U.S. has imposed a 100 percent tariff on all Chinese-made electric vehicles, effectively banning all imports except for mega-bucks models like the Lotus Eletre.
Producing electric vehicles in the United States would avoid this problem, but could face significant political opposition.
Previously, Ford CEO Jim Farley spoke enthusiastically about the Xiaomi SU7, which he drove as a test vehicle for six months.
He has also stated that the Chinese government’s strategy is to “dominate the (automotive) industry globally by moving to electric vehicles and intelligent vehicles before anyone else,” while acknowledging that Ford is open to entering into “intellectual property partnerships.”
Ford already has two long-standing relationships with Chinese automakers – Changan and JMC – both of which are its manufacturing partners in the Middle Kingdom.
Some of the cars produced by these joint ventures are sold in the Middle East, Africa and Latin America, including Mondeo/Taurus, Territory and Edge.
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