Big brand to team up with China as Ford preparing to make a deal with a major Chinese brand in Europe: Report

Ford and Geely could be about to team-up and use the Blue Oval’s European factory, according to a report in Reuters.

The brands are reportedly in talks for Geely to use Ford factory space in Europe to produce vehicles to be sold on the continent, which would allow Geely to skirt tariffs placed on Chinese built cars. 

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The talks are said to be at an advanced stage and have been going on for months.

Delegations from both companies have traveled to their counterparts’ respective headquarters over the past few weeks. 

Innovation in car automation and seamless technology from Chinese brands has long been admired by CEO Jim Farley.

Farley said back in 2024 that Chinese automakers presented an “existential threat” to the Western automotive industry.

He has praised the Xiaomi SU7 electric sedan, which he admitted at the time he had been driving for months.

Earlier this week, it was reported the Blue Oval was about to begin building electric cars with Xiaomi in the United States.

It is now believed the joint-venture will not happen after both companies ruled out the move publicly. 

This differs from Ford’s response to these Geely rumours with the Blue Oval telling Reuters: “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialise, sometimes they don't."

Geely did not comment on the potential of the partnership. 

Such a move would offer some benefits for Geely, with the company likely able to avoid the EV tariffs imposed by the European Union on Chinese car importers.

Ford currently has manufacturing plants in Germany, Romania and Spain, which would allow Geely to tap into factories already built in the region. 

Other Chinese automakers have already made the jump to European manufacturing, including Leapmotor building cars in Stellantis’ Spain plant. 

Ford could also gain valuable EV technologies from Geely, with the brand already having several electric-only models on sale.

This could be particularly important for Ford, as emissions standards continue to tighten around the world, especially in Australia. 

Australia’s tough New Vehicle Efficiency Standard (NVES) will see brands incur fines on vehicles that do not meet emissions standards. 

Selling electric vehicles accumulates credits for manufacturers, which can then be sold to other brands Down Under or mitigate against a its high-emissions vehicles. 

Geely technologies could assist Ford in gaining the electrified vehicle architecture for models, such as between Renault and Geely on models like the incoming Filante hybrid SUV.

Ford Australia told CarsGuide earlier this year the brand is more focused on consumer demand rather than emissions limitations.

Nearly all of Ford's models sold in Australia employ internal combustion engines, with models like the Ranger ute and Everest SUV being some of the most popular in the country.