Geely has secured a deal with Ford to use an idle assembly line at Ford's factory near Valencia, Spain, for local vehicle production, bypassing European tariffs on Chinese-made electric cars.
The Almussafes plant, with an annual capacity of 450,000 vehicles, has been running at less than a quarter of that for years.
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It currently builds the Ford Kuga, but will soon also assemble Geely models.
Geely's First European Production Site
While Geely has not officially confirmed which model it will produce in Spain, reports point to the EX2, an affordable electric hatchback that was China's best-selling new car last year.
Spanish Prime Minister Pedro Sanchez has been instrumental in facilitating the deal. Spain, lacking a major domestic car industry like Germany or Italy, has actively courted Chinese automakers.
Other Chinese brands are also expanding in Spain.
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Chery is working with Ebro to revive a former Nissan plant in Barcelona, and BAIC is partnering with Santana to build off-road vehicles in Andalusia.
Stellantis will establish a battery factory with CATL in Zaragoza.
Additional details are expected later this week when Sanchez speaks at the Ford plant.
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There is also speculation that Ford could build its own EV using the same platform as the EX2, though this remains unconfirmed.
