Ford Motor Co. and China’s Zhejiang Geely Holding Group held early-stage talks this year about extending a potential European partnership into the United States, but those discussions have since stalled amid mounting political and regulatory hurdles, according to people familiar with the matter.
The conversations focused on whether a collaboration already under consideration in Europe could be broadened to include the U.S., potentially giving Geely a foothold in the world’s second-largest auto market. That effort has lost momentum, however, with both companies now prioritizing a narrower agreement centered on Europe, according to The Wall Street Journal.
Under the proposed European arrangement, Ford and Geely would share technology and production capacity, including the possibility of Geely building vehicles at Ford’s underutilized plant near Valencia, Spain. Such a structure would allow Geely to avoid steep European tariffs on Chinese imports while making use of existing Ford manufacturing infrastructure.
Geely, China’s second-largest automaker behind BYD, has long sought to expand its presence in the U.S., a market largely closed to Chinese brands due to tariffs and national security restrictions on connected-vehicle software. U.S. automakers have warned that low-cost Chinese electric and hybrid vehicles pose a growing competitive threat.
Ford signaled little appetite for a U.S.-based partnership under current conditions. “Our commitment to a level playing field and safeguarding our home market remains absolute,” a Ford spokesperson said, adding that any arrangement easing Chinese access to the U.S. would conflict with that priority.
Geely offered a more measured response. “We always keep an open mind when it comes to exploring cooperative opportunities” with other automakers, a company spokeswoman said. “Engaging in constructive industry dialogue is part of how we operate, but we do not comment on rumors or speculations regarding potential partnerships.”
Among the ideas discussed were licensing Geely technology for U.S. use and potentially building vehicles on a Geely-developed platform. If realized, such a deal would mark the first formal partnership in the American market between a major Detroit automaker and a Chinese manufacturer.
Geely already maintains a U.S. presence through its ownership of Volvo Cars and Polestar, both of which sell vehicles domestically. Company officials have indicated interest in bringing additional brands from its portfolio to American consumers.
Ford CEO Jim Farley has publicly urged caution on Chinese vehicle entry into the U.S. market. Last week, he emphasized the need for a clear strategy to protect domestic employment before expanding ties. “Having a plan before we go fast, either in local production or imports from China, is the most important moment,” Farley said. “We’re in that moment right now.”
At the same time, Ford has pursued partnerships with Chinese firms abroad. The company is working with Contemporary Amperex Technology on a battery plant in Michigan, a project that has drawn scrutiny from some lawmakers.
Political considerations continue to complicate any deeper cooperation. Donald Trump has backed maintaining 100% tariffs on Chinese-made vehicles—policies carried over from the Biden administration—while also signaling openness to Chinese automakers producing vehicles within the United States. Ford has denied that the talks with the Chinese automaker took place.
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