Geely is one of China’s largest automotive groups and owns brands including Volvo, Polestar and Lotus – all of which already operate in Australia.

Ford has also been linked with potential talks involving other Chinese manufacturers such as BYD and Xiaomi, though no formal agreements have been announced. Both Ford and Xiaomi have denied reports specifically relating to US-based manufacturing plans.

No decision has been made following Farley’s proposal, which reportedly received a cool response from Trump administration officials.

The move comes after Ford reported a full-year net loss of $US8.2 billion – its largest since the 2008 global financial crisis.

Australia, which no longer has a domestic passenger car manufacturing industry to protect, has allowed Chinese brands to enter the market with relatively few barriers.

As a result, brands including BYD, GWM, MG and Chery now sell vehicles in significant volumes across passenger car, SUV, ute and EV segments.

A new wave of Chinese expansion is also underway, with GAC confirming a factory-backed Australian launch and Xiaomi expanding into Europe – potentially paving the way for further global growth.

While US policymakers continue to debate whether Chinese car-makers should be allowed to manufacture vehicles locally, Ford’s parallel discussions with Geely suggest elements of the industry are already positioning for that possibility.