- Ford and Geely are reportedly exploring a manufacturing partnership, which would allow Geely to utilise Ford’s European manufacturing capacity.
- The potential partnership could also allow the two OEMs to share technology such as autonomous driving and connected vehicle systems.
- Such a partnership could also improve Geely’s ability to sell EVs within the EU, sidestepping the higher tariffs currently applied to Chinese-built EVs.
Is another China-Europe automotive tie-up on the horizon?
As originally reported by Reuters, this rumoured proposal would allow Geely to use existing Ford production facilities within Europe. Geely, a Chinese OEM, sells vehicles under the Geely brand, as well as owning other manufacturers such as Volvo, Lynk & Co, and Zeekr.
Geely-badged vehicles, including fully-electric models, are already sold across a number of European countries, including the UK, Poland, Greece, and more. This move to allow Geely to produce vehicles at Ford’s existing European plants would allow the manufacturer to sidestep European Union-specific import tariffs on EVs built in China – which currently stand at 19.9% for Geely.
This potential move could also open up a North American expansion opportunity for Geely. Right now, Chinese EV manufacturers have shy away from entering the US market, with the prohibitive 100% Chinese EV tariff being a key barrier. If Geely produced these models in Europe under this new deal, it would allow for a more profitable entry into the US, if other conditions allowed.
In addition to manufacturing, reports of the deal also include collaboration on vehicle platforms, particularly on the areas of autonomous driving and connected vehicle technologies.
These rumours are clearly in an early stage, with both Geely and Ford declining to talk on the matter. However, there’s clearly a growing sign of Chinese and western OEMs seeking closer partnerships. It was only last week that we heard of a potential manufacturing partnership between China’s Chery and JLR within Europe. In a somewhat similar form to the Ford and Geely proposal, this would allow Chery to produce vehicles at JLR’s own UK-based production facilities.
