Ford In Talks With China's Geely To Explore European Manufacturing Partnership: Report

Ford Motor Co. (NYSE:F) is reportedly in discussions with China’s Geely Automobile Holdings Ltd. (OTC:GELYF) for a potential partnership that could see Geely utilizing Ford’s factory space in Europe to manufacture vehicles for the region.

The talks also involve the potential sharing of vehicle technologies, including automated driving. The discussions, which are more advanced in European manufacturing, have been ongoing for several months, according to a Reuters report on Wednesday.

Ford recently dispatched a delegation to China to advance the discussions, following talks in Michigan between senior Geely executives and Ford leadership.

The Valencia, Spain, plant is likely to be the factory involved in these discussions, sources told the publication.

Producing vehicles at Ford's European plants could help Geely sidestep EU tariffs, as Chinese automakers increasingly localize manufacturing in Europe, including Leapmotor's production at a Stellantis NV (NYSE:STLA) plant in Spain.

Ford Walks Tightrope On China EV Ties

This potential partnership comes on the heels of Ford’s denial of joint venture talks with Xiaomi Corp. (OTC:XIACF) for electric vehicle production in the U.S, despite CEO Jim Farley‘s admiration for Chinese EVs.

On a previous occasion, when asked if President Donald Trump would block a potential joint venture between Ford and a Chinese automaker, Farley dismissed the concern, adding that with the “right guardrails” in place, the government is open to evaluating such partnerships. However, Farley has also called for more steps to curtail China’s dominance in the auto sector.

Notably, Chinese automakers remain largely shut out of the U.S. market due to tariffs and security restrictions imposed under the Biden administration that have further expanded under Trump. Ford’s 2023 partnership with Chinese battery-maker CATL to produce low-cost LFP EV batteries, which is set to launch this year, has reportedly drawn the ire of lawmakers in Congress.

Despite this, Ford has been actively exploring partnerships in the electric vehicle space, including a potential battery partnership with BYD as part of its hybrid strategy.

Benzinga's Edge Rankings place Ford in the 74th percentile for quality and the 81st percentile for momentum, reflecting its strong performance in both areas. Benzinga’s screener allows you to compare Ford’s performance with its peers.  

Price Action: Over the past year, Ford stock surged 38.83%, as per data from Benzinga Pro. On Tuesday, the stock edged 0.58% lower to close at $13.73.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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