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Ford and Geely Explore Using Valencia Plant for European Assembly

The exploratory contact reflects Ford’s EV strategy reset with an emphasis on localizing Chinese-brand production in Europe.

Overview

  • Ford held preliminary talks with Geely about exchanging manufacturing capacity in Europe, including potential use of Ford’s Almussafes facility.
  • A delegation of Ford executives visited China this week to explore opportunities that include assembling vehicles in Valencia, according to Bloomberg.
  • Discussions have focused on production arrangements and exclude sharing technologies such as autonomous driving software.
  • Producing in Spain could help Geely avoid EU tariffs on China-built electric vehicles while lifting utilization at the underused Almussafes plant.
  • The Valencia site is rated for about 400,000 vehicles a year but has built only the Ford Kuga since 2024 as Ford reassesses its electric-vehicle plans and engages firms like BYD and Xiaomi.