Geely will use Ford factory space in Europe to produce vehicles for the region, Reuters reported. In exchange, Geely will give Ford access to its assisted driving technologies. The two parties have a major goal of cutting manufacturing costs.
According to people familiar with the matter, Geely and Ford had a high-level meeting in Michigan last week. Recently, the American automaker sent a delegation to China, aiming to intensify discussion. However, it is reported that talks between the two parties have been underway for months.
Ford and Geely officials haven’t shared any concrete information about their cooperation. It is unknown which Ford plant is in the middle of the discussion. Last year, Ford released a statement that its facility in Cologne (Germany) would switch production to single-shift operation from January 2026. Ford also has plants in Saarlouis (Germany) and Valencia (Spain).
The utilization of Ford’s European factory space will allow Geely to avoid anti-subsidy tariffs imposed on China-made electric cars by the European Union. Geely Group currently suffers from an additional 18.8% tariff on top of the standard 10%. It was previously reported that tariffs will be replaced with a minimum import price in the EU. However, the tariffs are still in force at the time.
What will Ford get
In return, Geely will provide Ford with assisted driving tech. Geely Group owns the ADAS system developer Afari Technology (Qianli Technology) that has recently released the new G-ASD assisted driving system. It utilizes the World Action Model (WAM). The company’s officials shared that it is a world behavior model with self-reflection and evolution capabilities.
The cars with G-ASD can perform actions in powertrain control, chassis & driveline control, body & electronic control, and cockpit control areas. It allows the car to autonomously navigate through underground parking garages across floors and roundabouts, or recognize highway gates & parking lot gates. The G-ASD system was already adopted by Lynk & Co and Zeekr cars.
Editor’s comment
The cooperation between Ford and Geely wasn’t officially confirmed. However, this partnership model is beneficial for both sides. The adoption of factory space will allow Geely to optimize the cost of its new energy cars. At the same time, Ford will be able to maintain a stable state of the factory, despite the reduction in production volumes of its own brand.
Moreover, the American company will get access to advanced assisted driving systems developed by Geely. Previously, Ford CEO Jim Farley praised Chinese electric cars a lot, stating that his company is decades behind. It seems that only adopting solutions already developed by Chinese companies will allow Ford to boost its competitiveness.
It is also worth noting that Geely actively cooperates with a lot of global automakers. It runs the Smart brand jointly with Mercedes-Benz. Geely also has a lot of joint projects with Renault, including the Horse Powertrain JV. This cooperation with Ford seems like a logical step in expanding Geely’s global presence.
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