The companies are in talks to have Geely use Ford factory space in Europe to produce vehicles for the region, three people familiar with the matter said. They also have discussed the potential framework for shared vehicle technologies,

The talks centered on European manufacturing are more advanced, two people said. Ford sent a delegation to China this week to intensify discussions, which followed meetings last week in Michigan between senior Geely executives and Ford leaders, some of the people said.

Ford’s plant in Valencia, Spain, would most likely be the factory involved in these talks, a person familiar with the matter said.

Several Chinese carmakers have made moves to set up production in Europe. Vehicles from Chinese automaker Leapmotor will be built at a Stellantis plant in Spain as part of a joint venture. Suppliers are also striking similar agreements, with China’s Guangzhou Automobile Group and Xpeng building an electric model at a Magna International facility in Austria.