Khaberni - Media reports reveal that the car manufacturer Ford is seeking cooperation with its Chinese counterparts to support its green transition project.
Despite its previous denial of rumors about its cooperation with the Chinese company Xiaomi, Ford is currently engaged in talks with the Chinese car manufacturer Geely, aiming to form a partnership in Europe.
This comes as part of the American company's efforts to revive its struggling car business within the European Union, and the collaboration between the two sides will also include manufacturing and technology.
According to two informed sources who spoke to the Financial Times, the talks between the two companies revolve around the possibility of Geely benefiting from the excess production capacity at Ford's factories in Europe, in addition to a technological partnership that could represent an opportunity for both companies to build cars on the same platform.
In a statement, Ford said that it is in talks with many other companies about various cooperation opportunities, considering this a normal procedure in the course of business.
Ford's talks with Geely, which owns the Volvo Cars and Polestar brands, are part of Ford's multi-year review of its strategy in Europe, which came after the company faced difficulties in the costly transition to electric vehicles and rising production costs.
In recent years, the company has seen a wave of layoffs that ousted thousands of employees, as Ford turned to reducing its workforce in Germany and the United Kingdom, and it also reduced the number of passenger cars in its lineup to focus on smaller trucks and sectors where it sees a profitable opportunity in a highly competitive market.
Ford has invested two billion dollars to convert its plant in Cologne, Germany, into an electric car factory, yet its factories in Europe are still operating below their production capacity.
Informed sources say Ford has held talks with other companies, including BYD, regarding the use of these factories.
Regarding its cooperation with Geely, the partnership of the Chinese group with Ford will allow Geely to use the American company's factories at a relatively low cost, at a time when Geely is seeking to expand the sales of its cars under its own brand.
This partnership will also enhance Geely's ability to cope with the high customs duties imposed by the European Union on electric cars manufactured in China.
An informed source who spoke to the Financial Times explained that, practically, Ford will continue to sell its cars in Europe under its brand, as will Geely, with cars from both brands being built through a shared manufacturing platform.
The source, who chose to remain anonymous, mentioned that an official from Geely recently visited Ford's headquarters in Michigan to discuss this partnership. According to a report published by the Financial Times, Ford had previously held talks about a possible collaboration with the Chinese car manufacturer Xiaomi.
Despite both parties denying these talks, leaks obtained by the newspaper suggest that the discussions were centered around a potential joint venture between them. Through this project, Ford sought to obtain a license to benefit from Xiaomi's industrial platform for electric cars in the United States.
In return, Ford offered Xiaomi access to manufacturing infrastructure and a distribution network that the Chinese company could benefit from within the United States. The leaks also indicate that this alliance aimed to produce an electric car priced at no more than $30,000, an unprecedented figure within Ford's pricing scheme.
Due to the political pressure that emerged once the leaks appeared, Ford quickly denied the story entirely.
