12:24 23-07-2026

Geely Gains an EU Factory: Ford to Sell Part of Its Spanish Plant

Ford is reportedly selling part of its Almussafes plant near Valencia to Geely, giving the Chinese automaker an EU manufacturing base and a way around import tariffs.

Geely could gain its own manufacturing base inside the European Union without building a new factory from scratch. According to the Spanish newspaper ABC, Ford has agreed to sell part of its Almussafes plant near Valencia to the Chinese automaker. An official announcement is expected during a visit by Spanish Prime Minister Pedro Sánchez and Ford Europe President Jim Baumbick, though neither company has confirmed the deal yet.

At the Spanish plant, Geely plans to build its compact EX2 electric car. Local assembly would let the automaker cut its reliance on finished vehicles shipped in from China and soften the impact of EU tariffs on Chinese-made EVs. Geely also controls Volvo, Polestar and Lotus, so the Spanish site could potentially serve a wider role, though Reuters hasn't reported any such plans.

For Ford, the deal solves a different problem. The Almussafes plant has been running under capacity since several models were discontinued, and now leans mainly on the Kuga crossover. Handing part of the site to a partner would cut fixed costs, keep production running, and reduce the risk of further job losses.

The arrangement works for both sides: Geely gets faster access to the European market, while Ford monetizes infrastructure that isn't being fully used. That said, local assembly doesn't necessarily mean deep European localization — the EX2's eventual price will depend on where its battery, motor and other components come from, along with the terms of the final agreement.

Buyers should wait for confirmation of the model, production volumes and launch date. For now, the report rests on ABC's sources, and Ford and Geely haven't disclosed the size of the stake being sold, the investment involved, or the eventual price of the European-built EV.