China's Geely and Ford are in discussions about using spare production capacity at the US carmaker's European plants to manufacture vehicles for the region, Reuters reported on Wednesday.

Ford saw its sales falling in Europe from 518,000 units in 2023 to 327,000 units in the first three quarters of 2025, according to Statista, a Germany-based market intelligence platform.

Ford's plant in Spain, which has been in operation since 1976, is the most likely facility involved in the talks, a person familiar with the matter told China Daily.

According to Reuters, the two companies have also discussed a potential framework for sharing vehicle technologies, including automated driving, citing two people with knowledge of the matter.

In response to a query from China Daily, Ford said: "We have discussions with lots of companies all the time on a variety of topics. Sometimes they materialize, sometimes they don't."

Geely Holding Group, which acquired Volvo from Ford in 2010, declined to comment.

The Chinese carmaker is targeting global sales of 6.5 million vehicles — including passenger and commercial models — by 2030, with overseas markets accounting for more than one-third of the total.

If achieved, the target would lift Geely from seventh place in global vehicle sales in 2025 into the world's top five by volume.

In 2025, the group delivered 4.116 million vehicles, up 26 percent year on year, marking its fifth consecutive year of rapid growth.

Last week, the Financial Times reported that Ford and Xiaomi had held discussions over a potential partnership that would have allowed the Chinese electronics group to manufacture electric vehicles in the United States, citing people familiar with the matter.

Both Ford and Xiaomi later said the report was inaccurate.

In Europe, Ford and French carmaker Renault announced late last year a strategic partnership to develop two Ford-branded electric vehicles based on Renault's Ampere platform, with production to take place in France.

Geely has also partnered with Renault in South Korea and Brazil to produce and sell vehicles based on Geely technologies using the French automaker's factories and sales network.

Chinese automakers have increasingly sought to establish manufacturing bases overseas, especially in Europe, one of the largest destinations for China-made NEVs.

Vehicles from Leapmotor will be produced at a Stellantis plant in Spain as part of a joint venture, while Xpeng is building an electric model at a Magna International facility in Austria.

The Financial Times reported in late January that China's Chery and Jaguar Land Rover may discuss the possibility of producing cars in the UK using one of the British carmaker's existing plants.