Guan Cha Zhe Wang·2026-02-04 10:08Core Viewpoint - Geely Automobile and Ford Motor are in talks for a potential collaboration to share technology development and production costs, focusing on utilizing Ford's European factories for local market production [1][2]. Group 1: Collaboration Details - The discussions center around Geely using Ford's factory in Valencia, Spain, to produce vehicles for the European market [1]. - Both companies are also exploring the sharing of automotive technologies, including autonomous driving [1]. - Geely's executives recently met with Ford's leadership in Michigan, and Ford sent a delegation to China to further discussions, indicating ongoing negotiations for several months [2]. Group 2: Strategic Context - Geely aims to leverage Ford's European production capabilities to avoid the EU's high tariffs on Chinese electric vehicle imports, which could reach up to 37.6%, with Geely facing a 19.9% tariff [5]. - Other Chinese automakers, such as BYD and Leap Motor, are establishing production bases in Europe to mitigate similar tariff impacts [5]. - Geely has a history of collaboration with European brands, including partnerships with Renault, which have resulted in increased sales in non-European markets [5]. Group 3: Industry Dynamics - Ford's CEO, Jim Farley, has acknowledged the technological lead of Chinese automakers in electric vehicles and the importance of collaboration to mitigate risks in the industry [6][8]. - Ford has previously formed strategic partnerships with other companies, such as Renault, to develop new electric vehicle models [8]. - Recent collaborations between Ford and Chinese companies, including CATL, highlight the growing trend of partnerships in the automotive sector [8]. Group 4: Regulatory Environment - There are uncertainties for Chinese automakers in collaborating with U.S. companies due to regulatory restrictions imposed by the Biden administration, which have limited access to the U.S. market [9]. - Concerns have been raised by U.S. lawmakers regarding the security risks associated with Chinese automotive technology, which could impact future collaborations [9]. - Despite these challenges, there are indications that potential partnerships may still be welcomed if they bring investment and job opportunities to the U.S. [11].