Ford Motor Company (NYSE:F) and Chinese peer Geely (HK:0175) are in discussions over a potential partnership in manufacturing, Reuters reported on Wednesday, citing people with knowledge of the talks.
The companies are discussing having Geely use Ford’s European factories to produce vehicles for the region, and have also discussed the potential for automated driving, the Reuters report said.
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Talks over European manufacturing are far more advanced, the report said, and that talks between Ford and Geely have been underway for months.
The report comes just months after Ford said it was overhauling its European operations, and was teaming up with Renault to jointly develop small, cheap electric vehicles for the region.
The company, along with several of its traditional automaking peers, are grappling with a wave of Chinese competitors in overseas markets.
Manufacturing cars using Ford’s European factories could help Geely avoid European import tariffs on Chinese vehicles.
Ford CEO Jim Farley was recently seen pushing for his company to close a competitive gap with Chinese rivals, and had also flagged the need for more partnerships to help further this agenda.
