Ford and Geely explore new partnership to build EVs in Europe

04 February 2026

A major shift is happening in the EV world, according to recent reports. The rumors were swirling around Xiaomi and Ford's potential partnership, but Reuters claims that the American automaker is, in fact, in deep talks with the Chinese automotive giant Geely about a new collaboration.

The two companies met in Michigan last week to discuss a deal that could change how EVs are made and sold in Europe. Ford even sent a team to China this week to keep the conversation going. Neither company has made an official announcement yet, but experts say these talks have been happening for months.

The main part of the deal involves Geely using Ford's factory space in Europe to build its own vehicles. This would help both sides solve big problems. Ford has been struggling with high costs and has extra space in its plants. By letting Geely use that space, Ford can keep its factories running and protect jobs. For Geely, building cars in Europe is a smart way to avoid import tariffs.

The European Union currently puts a heavy tax on electric cars imported from China. For Geely, this tax is usually 18.8% on top of a standard 10% fee. By making cars at a Ford plant, Geely can skip these extra costs and sell its EVs for less money.

It is not yet certain which plant Geely will use, but there are a few likely choices. Ford's factory in Valencia, Spain, is often mentioned as the top candidate. This plant is huge and has the tools needed for modern vehicle assembly. Other options include the plant in Cologne, Germany, or the site in Saarlouis, Germany.

The Cologne plant switched to a smaller work schedule last month already, and using this extra space for Geely models would help Ford manage its budget better. Both companies want to cut down on manufacturing costs to stay competitive as more people switch to electric cars.

This deal is not just about floor space. In return for using the factories, Geely will give Ford access to its latest self-driving tech. Geely owns a tech company called Afari Technology, which just released a system called G-ASD. This system uses a "World Action Model" or WAM.

The WAM can "think" and learn from what it sees on the road. Cars using this tech can drive themselves through tricky places like multi-story parking garages and busy roundabouts. It can even recognize gates at highway tolls or parking lots on its own. Ford CEO Jim Farley has praised Chinese EVs before, admitting that Western brands have a lot of catching up to do in this area.

The G-ASD system is already being used in cars like the Lynk & Co and Zeekr. It controls almost every part of the vehicle, including the powertrain, the brakes, and the digital screens inside. By using Geely's tech, Ford could quickly add high-tech features to its own electric cars without spending years developing them from scratch.

This kind of teamwork is becoming more common. Geely already works with Mercedes-Benz to run the Smart brand and has projects with Renault in the pipeline. For Ford, this is a way to get back in the race. For Geely, it is a big step toward becoming a household name across Europe.

Source