According to a report in China Daily on February 5, 2026
Chinese automaker Geely is reportedly in talks with Ford to utilize spare production capacity at the US carmaker’s European plants, potentially expanding its footprint in one of the world’s largest automotive markets, Reuters reported.
The discussions are believed to focus on Ford’s longstanding Spain facility, operational since 1976, though no final agreements have been confirmed. Sources cited by Reuters also indicate that the two companies have explored technology-sharing frameworks, including automated driving systems.
Geely, which acquired Volvo from Ford in 2010, aims to achieve 6.5 million global vehicle sales by 2030, with overseas markets contributing over one-third of that total. In 2025, the company delivered 4.12 million vehicles, a 26% year-on-year increase, marking its fifth consecutive year of rapid growth. Achieving its target would elevate Geely into the top five global automakers by volume.
The potential partnership reflects a broader trend of Chinese automakers establishing manufacturing bases overseas, particularly in Europe, a key market for new energy vehicles (NEVs). Other examples include:
Leapmotor producing EVs at a Stellantis plant in Spain
Xpeng manufacturing an electric model at Magna International in Austria
Geely collaborating with Renault in South Korea and Brazil to produce vehicles based on Geely technology
Ford has previously announced European collaborations, including a partnership with Renault to develop Ford-branded EVs produced in France, highlighting the automaker’s strategy to optimize its global manufacturing network amid declining European sales.
Industry analysts see the Geely-Ford discussions as part of a strategic shift by Chinese carmakers to secure production capacity and access advanced technologies abroad, positioning them to compete more effectively in key international markets.
“With European EV demand rising and manufacturing costs increasing domestically, leveraging existing plants abroad is a pragmatic way for Chinese firms to scale globally,” said an automotive market analyst.