Geely is in discussions to utilize production capacity at an unnamed Ford facility in Europe for local assembly of its vehicles, according to people familiar with the matter. In return, Geely would share its assisted-driving technology with Ford. Both companies are aiming to reduce manufacturing costs and improve factory utilization amid shifting production volumes.
Sources say Geely and Ford held a high-level meeting in Michigan last week, following a Ford delegation visit to China. Talks have reportedly been ongoing for several months, although neither automaker has confirmed specific details or identified which European plant might be involved. Ford’s Cologne facility in Germany recently switched to single-shift operation as of January 2026, and the company also operates plants in Saarlouis (Germany) and Valencia (Spain).
By assembling vehicles in Europe, Geely could avoid a combined anti-subsidy and standard import tariff of nearly 29% currently applied to China-made electric cars under European Union trade measures. While the EU has indicated plans to replace tariffs with a minimum import price, the levies remain in effect.
Under the proposed arrangement, Geely’s contribution would include its G-ASD assisted-driving system, developed by its ADAS arm Afari Technology. The system leverages a World Action Model (WAM) with self-reflection and evolution capabilities. G-ASD enables autonomous navigation through complex scenarios such as multi-level parking garages, roundabouts, and gated highways, and it manages powertrain, chassis and driveline, body electronics, and cockpit controls. The technology is already deployed in Lynk & Co and Zeekr models.
Analysts note that the partnership could allow Geely to optimize unit costs for its electric crossovers, such as the EX5, while helping Ford maintain plant efficiency despite adjustments to its own production schedules. Ford would benefit from integrating advanced driver assistance features developed by Geely’s engineering teams.
This potential collaboration follows Geely’s broader global strategy of joint ventures and technology sharing. The automaker co-runs the Smart brand with Mercedes-Benz and has powertrain and vehicle partnerships with Renault. Expanding ties with Ford would represent a further step in Geely’s efforts to strengthen its presence in key international markets.
Source: Car News China
