BREAKINGVIEWS-Ford and Geely would make formidable power couple

By Katrina Hamlin

HONG KONG, Feb 11 (Reuters Breakingviews) - Ford Motor F.N and Geely could go further together. The Chinese automaker is in talks to use its $54 billion rival’s European factory space, Reuters reported last week, citing sources. There’s room for the duo to do much more.

Earlier in the year, the Detroit giant mulled working with Xiaomi – whose Porsche look-alikes Ford CEO Jim Farley openly admires - and BYD, according to the Financial Times and Wall Street Journal. But Geely makes better sense.

The U.S. group is developing its first affordable smart electric car, a concept all three potential Chinese partners have nailed. But on Wednesday Ford reported a $8.2 billion annual net loss after taking a $19.5 billion writedown to reset its electric-car business last year. While the Blue Oval says it is “relentlessly focused” on improving EVs, it badly needs more profitable combustion engines and hybrids too.

Unlike BYD 002594.SZ and Xiaomi 1810.HK, Geely does both. Last year, it overtook Volkswagen VOWG.DE to become China’s second-largest carmaker by growing sales in both battery and combustion vehicles. It was the only manufacturer to be among the top three best sellers in both segments of the market. The company has also set up Horse, a joint venture with Renault RENA.PA developing tech for gasoline- and hybrid vehicles, aiming to become the world’s top engine maker. Horse sold more than 2 million engines in the first half of 2025.

Although there are limits to any collaboration, given U.S. tariffs and controls on China-made cars and components, Farley is willing to push limits. Ford is licensing Ningde-based Contemporary Amperex Technology’s 300750.SZ battery technology for production in the U.S., for instance. Meanwhile Geely founder Li Shufu owns 79% of Volvo Cars, which sold some 120,000 cars in the U.S. last year, making it the only major Chinese-owned auto brand with substantial sales there.

The two companies have known each other a long time: Geely, after all, bought Volvo VOLVb.ST from Ford in 2010, and if they work together again, they could have an edge over Detroit peers. General Motors GM.N, which sold its European business in 2017, has no such relationship. Stellantis STLAM.MI works with Leapmotor 9863.HK, but the startup only makes battery-electric options.

Cooperation in Europe would be a win-win. Ford can monetize excess capacity, while Geely can speed up local production to avoid tariffs. But Farley and Li would make a formidable power couple if they take the conversation further.

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CONTEXT NEWS

Ford Motor reported a net loss of $8.2 billion for 2025, compared with a $5.9 billion profit a year earlier, while revenue grew 1% to $187 billion, the company said on February 10.

Ford Motor and China’s Geely are in discussions about a potential partnership, Reuters reported on February 4, citing eight people with knowledge of the discussions. The companies are in talks to have Geely use Ford's spare factory space in Europe to produce vehicles for the region. They also have discussed the potential framework for shared vehicle technologies, including for automated driving, per the report.