For Geely, localized production in Europe could cut costs and reduce tariff exposure, as Chinese carmakers accelerate regional manufacturing strategies across the continent. Geely is in discussions with Ford Motor over a potential cooperation framework, according to multiple people familiar with the matter cited by Reuters on February 4. Against the backdrop of rising global R&D and manufacturing costs, both sides are seeking to ease investment pressure through complementary use of resources. The talks have yet to reach a final conclusion, but contacts between the two companies have been ongoing for several months. Sources said the discussions include a proposal under which Geely would utilize Ford’s manufacturing capacity in Europe to produce vehicles for local markets. Ford plant in Spain Among Ford’s European facilities, its plant in Valencia, Spain, is viewed as the most likely site for such cooperation. The report noted that negotiations related to European production capacity have progressed more quickly. Ford delegations have recently traveled to China to advance discussions, following earlier meetings between Geely executives and Ford management in Michigan. Beyond manufacturing, the two companies are also exploring a framework for technology cooperation, covering intelligent connectivity and advanced driver assistance or autonomous driving technologies. For Ford, such collaboration carries practical significance. In recent years, Ford has faced mounting pressure in the pace of its intelligent and autonomous driving development. Ford CEO Jim Farley Ford CEO Jim Farley has repeatedly stated publicly that the company must narrow the gap with Tesla and Chinese automakers. For Geely, localized production at Ford’s European plants could help reduce logistics and manufacturing costs, while potentially mitigating the impact of European Union tariffs targeting Chinese-made electric vehicles. More broadly, Chinese automakers are accelerating localization efforts in Europe. Leapmotor has confirmed production at a Stellantis plant in Spain, while GAC and XPeng have chosen Magna Steyr’s facility in Austria to manufacture battery electric models. Renault Geely do Brasil established by Geely and Renault Geely already has experience with overseas capacity cooperation. In November last year, it reached an agreement with Renault to acquire a 26.4% stake in Renault do Brasil. Later, they established Renault Geely do Brasil, leveraging Renault’s local plants to produce and sell new energy vehicles while sharing capacity and distribution channels. From an operational standpoint, Geely’s scale advantage continues to strengthen. Data show that Geely’s total vehicle sales reached 3.02 million units in 2025, up 39% year on year. Its total sales in Europe rose to 68,499 units last year, marking a 58% increase. Based on last year’s performance, Geely Auto has set a 2026 sales target of 3.45 million units, representing growth of about 14% from its 2025 actual sales.