Ford and Geely strike a deal in a landmark deal that will allow the Chinese automaker to manufacture electric vehicles at Ford’s Almussafes plant near Valencia, Spain. The move marks a major shift in Europe’s EV manufacturing landscape, benefiting both companies while strengthening Geely’s presence inside the European Union.
Ford and Geely Strike Deal to Expand European EV Manufacturing
Under the agreement, Ford will sell part of its Almussafes facility to Geely, enabling the company to produce its EX2 electric vehicle in Spain. The announcement is expected during a visit to the Valencia plant by Spanish Prime Minister Pedro Sanchez and Ford Europe President Jim Baumbick. Although neither company has officially confirmed the deal, industry reports indicate that negotiations have reached an advanced stage.
Why the Partnership Matters
The Ford and Geely strike-deal agreement offers significant advantages for both automakers.
For Geely, manufacturing in Spain creates a production base within the European Union, allowing it to avoid high EU tariffs on electric vehicles imported from China. It also improves logistics, speeds up deliveries, and supports the expansion of its global brands, including Volvo, Polestar, and Lotus.
Ford, meanwhile, benefits by reducing fixed operating costs through shared factory infrastructure. The agreement also helps preserve jobs at the Almussafes plant, which has faced uncertainty following the discontinuation of several vehicle models and declining production of the Ford Kuga.
Growing Global EV Competition
The Ford and Geely strike deal also reflects broader changes in the global electric vehicle industry. Chinese automakers are increasingly expanding overseas as intense competition and slowing growth in China’s domestic EV market push companies to seek new opportunities abroad.
Industry analysts believe the partnership highlights how global manufacturers are making better use of underutilized production facilities while accelerating international EV expansion. Earlier reports had already suggested that Ford and Geely were exploring manufacturing and technology cooperation, with the Valencia plant emerging as the preferred European location.
A Strategic Win for Both Companies
As Ford and Geely strike a deal to manufacture electric vehicles in Spain, the partnership strengthens Europe’s EV production ecosystem while providing long-term strategic benefits for both companies. The agreement demonstrates how established automakers and emerging EV leaders can collaborate to reduce costs, protect jobs, and expand access to one of the world’s fastest-growing electric vehicle markets.
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