Chinese Volvo Owners in Discussions with Ford for “Made in Europe” Production
Chinese Shareholders of Volvo in Negotiation with Ford for European Production Site
Chinese shareholders of Volvo, owned by the Geely group, are reportedly in discussions with Ford to acquire part of a European industrial site. The aim is to initiate the production of vehicles branded as "made in Europe," amid a profound transformation in the global automotive industry.
Reutilizing an Underused Industrial Site
The project focuses on leveraging a portion of a Ford factory that has seen a significant decline in activity in recent years. Production at this facility has dropped from around 400,000 vehicles in 2016 to fewer than 100,000 expected by 2025, leaving several assembly lines underutilized.
The discussions are focusing on a modern assembly area that was previously used for models like the Ford Mondeo, S-Max, and Galaxy, all of which have now been discontinued.
A Challenge Related to European Tariffs
This initiative is set against the backdrop of tightening European trade policies, including additional tariffs targeting electric vehicles imported from China. For Chinese manufacturers, producing in Europe could help reduce these costs and enhance their competitiveness.
Some estimates suggest that these tariffs could reach as high as 28% on certain models, making local production more strategic.
Geely’s Expansion in the European Market
Geely is looking to strengthen its presence in Europe with new hybrid and electric models, particularly in the SUV segment. Establishing local production would also improve logistics and compliance with European standards.
There are discussions of vehicles derived from the Geely Galaxy range, tailored for the European market.
Towards Technological Cooperation
Beyond production, Ford and Geely are also considering collaboration in software, electronics, and Advanced Driver Assistance Systems (ADAS), which have become central to the value of modern vehicles.
An Evolving Automotive Industry
This type of agreement exemplifies the reshaping of the global automotive value chain, where production, technology, and industrial strategies increasingly intersect between Europe and Asia.
