by Ford and Geely: Talks on US Technology That Hit a Dead End
Currently, Ford and Geely are negotiating cooperation in Europe. If these discussions are successful, they could assist each other in markets on both sides of the Atlantic. According to a new report, there was a possibility that Ford would use Geely’s technology in its vehicles in the US. However, these talks apparently fell through, largely due to political pressure.
How the Negotiations Developed
According to The Wall Street Journal, discussions regarding the US market began over a year ago. They included the possibility of licensing Geely’s technology for Ford. At one point, the negotiations envisioned Ford potentially using Geely’s platform — a common structural foundation for creating different models — for future vehicles.
Discussions regarding the US began over a year ago, including licensing Geely’s technology for Ford. At one point, the negotiations envisioned Ford potentially using Geely’s platform for future models.
Had the situation turned out differently, this would have been one of the largest collaborations between Detroit and China on American soil.
Who is Geely and Why Does It Matter
Geely is not some obscure startup trying to penetrate the US market. It is China’s second-largest automaker after BYD, which controls global brands such as Volvo Cars and Polestar. The company also showcased its electric vehicle, the Galaxy M9, at the CES exhibition earlier this year, clearly signaling its ambitions in the US. However, reports indicate that the talks have cooled in recent months, and both companies are now more focused on Europe.
The European Direction and American Problems
In Europe, Geely could use Ford’s plant near Valencia, Spain, which would help it avoid higher tariffs on Chinese imports, while Ford would gain productive use of the plant’s excess capacity. However, the situation in the US is much more complicated.
Over the past year, Ford has warned that Chinese automakers pose one of the greatest threats to the global automotive industry. CEO Jim Farley has repeatedly stated that the US needs a plan before allowing Chinese cars to flood the market.
Ford’s Official Position
A Ford representative also told the WSJ that helping a Chinese automaker gain “entry” into the US market would completely contradict the company’s stance, calling its commitment to protecting the domestic market “absolute.” For now, this idea seems to have been shelved. But the very fact that Ford even considered such a possibility shows how seriously Detroit perceives China’s technological advantage.
This situation illustrates a deep conflict of interest in the global automotive industry. On one hand, American manufacturers like Ford publicly call for protection against Chinese imports, while on the other hand, they privately acknowledge that Chinese technologies, especially in the field of electric vehicles and platforms, may be too valuable to ignore. The failed talks indicate that political pressure and trade tensions between the US and China are becoming a decisive factor, forcing companies to choose between technological progress and political loyalty. At the same time, active cooperation in Europe could be a compromise solution, allowing both giants to benefit without causing additional political backlash in the US.
