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.
A Ford and Geely EV partnership could be a win-win
It’s no secret by now that China is the clear leader in the auto industry’s shift to software-defined electric vehicles.
The rapid rise of Chinese automakers in Europe, the UK, and other major global auto markets forced Ford to reconsider its global business plans.
“We know we’re in a fight for our lives,” Ford’s CEO Jim Farley said during an interview in December after announcing a new partnership with Renault to develop more affordable EVs to compete with BYD, SAIC’s MG Motors, and other surging Chinese brands.
Now, Ford is reportedly closing in on a potential deal with Volvo’s parent company, Zhejiang Geely Holding Group.
According to Reuters, citing eight sources familiar with the matter, the Ford and Geely deal may involve more than just sharing manufacturing space.
Two sources said Ford and Geely have discussed sharing new technology, including automated driving and other advanced driver-assistance systems (ADAS) features.
Talks have been ongoing for months, five of the sources claimed, but discussions have been intensifying recently.
Following a series of meetings last week in Michigan between Ford and Geely executives, Ford reportedly sent a representative to China this week.
The talks are still ongoing, and no plans have been finalized. Ford said in a statement, “We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don’t.”
A partnership could benefit Geely and Ford in the long run. Using Ford’s underutilized space in Europe would help Geely avoid tariffs of up to 37.6% on imported EVs from China. Ford’s plant in Valencia, Spain, would most likely be chosen to share with Geely.
For Ford, it could help it 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 over the weekend claimed Ford was in talks with China’s Xiaomi about a partnership to build EVs in the US. Ford and Xiaomi denied the report, calling it “completely false.”
Author: Peter Johnson
Source: Electrek
Reviewed By: Editorial Team
