Ford Motor Co. (NYSE:F) is reportedly in discussions with China’s Geely Automobile Holdings Ltd. (OTC:GELYF) for a potential partnership that could see Geely utilizing Ford’s factory space in Europe to manufacture vehicles for the region.

The talks also involve the potential sharing of vehicle technologies, including automated driving. The discussions, which are more advanced in European manufacturing, have been ongoing for several months, according to a Reuters report on Wednesday.

Ford recently dispatched a delegation to China to advance the discussions, following talks in Michigan between senior Geely executives and Ford leadership.

The Valencia, Spain, plant is likely to be the factory involved in these discussions, sources told the publication.

Producing vehicles at Ford's European plants could help Geely sidestep EU tariffs, as Chinese automakers increasingly localize manufacturing in Europe, including Leapmotor's production at a Stellantis NV (NYSE:STLA) plant ...