Ford and Geely: A Strategic Alliance to Navigate the EV Revolution
Ford is actively pursuing a partnership with Geely, signaling a significant shift in strategy to compete with the growing dominance of Chinese electric vehicle manufacturers. This potential collaboration, following earlier discussions with Xiaomi and BYD, highlights Ford’s willingness to explore unconventional alliances to secure its future in the rapidly evolving automotive landscape.
Why Geely Makes More Sense Than Other Partnerships
While initial talks with Xiaomi and BYD were considered, Geely presents a more comprehensive solution for Ford. Unlike its competitors, Geely possesses expertise in both battery electric vehicles (BEVs) and internal combustion engine (ICE) vehicles and hybrid technologies. This is crucial for Ford, which, despite its focus on EVs, still requires profitable ICE and hybrid offerings.
Geely surpassed Volkswagen in 2025 to grow China’s second-largest automaker, demonstrating its ability to scale production across both battery and combustion engine vehicles. Its subsidiary, Horse, co-created with Renault, is a leading developer of engine and hybrid technology, selling over 2 million units in the first half of 2025 alone.
Leveraging European Manufacturing Capacity
A key aspect of the potential partnership involves Geely utilizing Ford’s underutilized manufacturing facilities in Europe. This allows Geely to accelerate production and bypass potential tariffs, while Ford can monetize its existing infrastructure. The possibility of Geely producing vehicles at Ford’s Valencia plant is specifically being discussed.
Technology Sharing: A Win-Win Scenario
Discussions extend beyond manufacturing to include the sharing of advanced technologies, particularly in automated driving and advanced driver-assistance systems (ADAS). This collaboration could accelerate the development and deployment of these features for both companies. Ford is too leveraging technology licensing agreements, such as with CATL for battery production in the US.
Geely’s Existing Foothold in the US Market
Geely’s ownership of Volvo Cars provides a unique advantage. Volvo sold approximately 120,000 vehicles in the US in 2025, making it the only major Chinese-owned automotive brand with significant sales in the country. This existing presence could facilitate a smoother entry for Geely’s other brands into the US market.
A History of Collaboration
This isn’t the first interaction between Ford and Geely. Geely acquired Volvo from Ford in 2010, establishing a pre-existing relationship that could prove beneficial in forging a new partnership. This contrasts with competitors like General Motors, which sold its European operations in 2017, and Stellantis, which is focused on battery-only options through its partnership with Leapmotor.
Pro Tip:
Strategic partnerships are becoming increasingly common in the automotive industry as manufacturers seek to share costs, access new technologies, and navigate complex global markets.
Navigating US Tariffs and Regulations
Despite US tariffs and controls on vehicles and components made in China, Ford CEO Jim Farley appears willing to push boundaries. The company’s licensing agreement with CATL for battery technology production in the US demonstrates this commitment to finding innovative solutions.
FAQ
- What is the main goal of the Ford-Geely partnership? The primary goal is to leverage each other’s strengths to compete more effectively in the global EV market, particularly against Chinese automakers.
- Will Geely vehicles be built in Ford factories in Europe? Discussions are underway for Geely to utilize Ford’s European manufacturing facilities.
- What technologies might be shared between Ford and Geely? Potential areas of collaboration include automated driving systems and advanced driver-assistance systems (ADAS).
- Does Geely already have a presence in the US market? Yes, through its ownership of Volvo Cars.
Did you know? Ford reported net losses of $8.2 billion in 2025 due to restructuring costs related to its EV business.
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