The American Ford and the Chinese Geely, both under pressure to lower production costs and investments in the development of new technologies, have decided to explore the possibility of forming a partnership that increases the competitiveness levels of both groups. This need for collaboration has grown with the rise of global competition, and especially with the introduction of customs duties that have degraded market conditions in many regions.
Sources close to both manufacturers have confirmed the discussions, and Geely’s interest in Ford’s industrial assets in Europe (Valencia, Spain, is at the top of the Chinese wishlist) for the production of electric vehicles. The goal is to avoid the tariffs imposed by the European Union (EU) on all 100% electric models imported from China (ranging from 18.8% to 28%).
Among the countermeasures provided by Geely is Ford’s access to the G-ASD autonomous driving system, among other technologies where the Chinese are ahead of the Americans, the same sources report. They also confirmed the visit of a delegation from the Dearborn manufacturer to China, after a mission from the Hangzhou builder visited the company based in the outskirts of Detroit, Michigan.
Apparently, the conversations, which are not recent, have already established a platform of understanding regarding the model of the Ford-Geely strategic partnership. And the CEO of the blue oval company, who acknowledges the technological lag for the Chinese in various domains, is not afraid of a negative reaction from the Trump Administration to this type of agreement: “If we implement all the necessary protective measures, and think about the matter correctly, we do not anticipate opposition from the federal government. I think they would even recognize the need for us to increase our levels of competitiveness”, stated Jim Farley.
