Ford is in talks to adopt Geely’s technology

Ford Motor Company and Geely have explored the possibility of extending the alliance they are currently negotiating for the European market to the United States as well, according to an article in The Wall Street Journal

The potential deal would provide the Blue Oval with technologies licensed from the Chinese automaker, which in return would gain a launchpad in the world’s second-largest automotive market.

However, sources cited in the report acknowledge that talks regarding the U.S. market have stalled in recent months, so both companies have focused on advancing an agreement in which Geely would provide technology in exchange for manufacturing capacity in Europe, specifically at Ford’s plant in Valencia, Spain.

According to the report, discussions regarding a potential alliance in North America began a year ago and ranged from the use of technology licenses to the possible adoption of a Geely platform by Ford for the development of future models.

The report highlights the obstacles the deal faces for both companies with their respective governments, and cites an agreement under which Ford uses technology licensed from the Chinese battery manufacturer CAT (Contemporary Amperex Technology).

That agreement has drawn criticism from politicians on both sides of the political spectrum despite the $3 billion investment and the jobs created by the plant in Michigan, where that technology is used.

However, it is worth noting that last January, during a visit to Detroit, President Trump expressed openness to the idea of Chinese automakers entering the U.S. market if they are willing to build assembly plants and provide jobs.