Ford is reportedly in advanced negotiations to sell a section of its Valencia, Spain manufacturing facility to Chinese automotive giant Geely. This strategic move would allow Geely to produce its own branded vehicles in Europe for the first time, starting with a compact electric crossover destined for the UK market.
The deal represents a significant pivot for both companies: Ford seeks to stabilize its European operations amid declining sales, while Geely aims to bypass steep import tariffs and establish a physical manufacturing footprint on the continent.
Зміст
A Strategic Shift in Valencia
According to reports from Spanish automotive publication La Tribuna de Automoción, Geely would take control of the plant’s Body 3 assembly hall. This specific line previously manufactured popular models such as the Mondeo, Galaxy, and S-Max.
The Valencia plant currently has an annual capacity of 300,000 vehicles but is operating well below that limit, producing only the Kuga compact SUV. By leasing or purchasing this underutilized space, Geely can begin production without the massive capital expenditure required to build a new factory from scratch.
Key implications of the deal include:
- For Ford: The transaction would provide a crucial cash injection for Ford’s European division, helping to offset slumping sales figures.
- For Geely: It offers a foothold in the European market, allowing the company to manufacture locally and avoid the EU’s punitive 18.8% tariffs on electric vehicles imported from China.
The Galaxy EX2: Geely’s European Debut
Geely’s first product from the Valencia facility is expected to be the Galaxy EX2, a compact electric crossover roughly the size of Ford’s Puma. In China, this model is known as the Galaxy Xingyuan and was the best-selling car in the country last year.
The vehicle will be built on Geely’s modular GEA platform, a flexible architecture designed to support both electric and plug-in hybrid powertrains across various body sizes. Industry sources suggest that Geely may also use this line to produce a Ford model based on the same GEA platform, signaling a deeper level of technical collaboration than a simple real estate transaction.
Rethinking Ford’s Future Crossover
This partnership could fundamentally alter Ford’s own product roadmap in Europe. Last year, Ford confirmed plans to launch a new crossover at the Valencia plant to indirectly replace the Focus. Initially, this vehicle was expected to use Ford’s existing C2 platform (shared with the Kuga) to minimize production line retooling costs.
However, the potential tie-up with Geely opens the door for Ford to adopt Geely’s GEA platform for this new model instead. This would allow Ford to leverage Geely’s advanced electric architecture while maintaining production in Europe. It aligns with Ford’s broader strategy of utilizing partnerships for its European lineup, similar to how the Capri and Explorer use Volkswagen’s MEB platform, and how future EVs will utilize Renault’s Ampr architecture.
Advanced Negotiations
Reports indicate that discussions between the two automakers are “very advanced.” Geely has already begun contacting suppliers in and around Valencia to prepare for potential operations. If finalized, this deal would mark a historic moment for the European auto industry, illustrating how traditional manufacturers and emerging Chinese giants are increasingly relying on collaboration to survive in a rapidly electrifying market.
In summary, the proposed sale of part of Ford’s Valencia plant to Geely is more than a real estate transaction; it is a strategic alliance that allows Ford to monetize underused assets while enabling Geely to circumvent EU tariffs and launch a proven best-seller in Europe.
