American auto giant Ford and Chinese holding company Geely have begun discussions on large-scale cooperation aimed at sharing production costs and developing new technologies. According to eight Reuters sources, the parties are considering the possibility of using Ford's European plants to assemble Geely cars, which will allow the Chinese company to operate more efficiently in the region. This is reported by UNN.
Details
The main point of negotiations is the joint use of Ford's production facilities in Europe, where the company is currently restructuring its operations. In addition to industrial partnership, the automakers are discussing technology exchange, particularly in the field of automated driving and intelligent driver assistance systems.
Sources report that negotiations on European production are at a more advanced stage, and this week a Ford delegation visited China to intensify the dialogue.
We are constantly negotiating with many companies on a wide variety of topics. Sometimes they materialize, sometimes they don't.
Geely has so far declined to comment officially on the potential deal.
Political risks and competition
Ford's attempts to find common ground with Chinese partners come amid intense regulatory pressure in the US. The Trump administration and American lawmakers have repeatedly expressed concerns about national security risks associated with Chinese software in the automotive industry.
Earlier, similar rumors about Ford's cooperation with Xiaomi were categorically denied by both sides, which underscores the sensitivity of any agreements between Detroit and Beijing.
Despite political obstacles, Ford CEO Jim Farley previously noted the success of Chinese electric vehicle manufacturers, calling them an "existential threat" to Western companies. Cooperation with Geely could be a way for Ford to close the technological gap, while for the Chinese side it is a chance to bypass high EU import duties by producing cars directly within the European Union.
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