Ford has reached a deal with Geely to hand over an unused assembly line at its Valencia, Spain plant, allowing the Chinese automaker to produce vehicles locally and sidestep European tariffs.
The agreement comes after months of negotiations and places Geely on the right side of import duties Europe introduced to slow the influx of Chinese-made cars.
>>> Geely to Build Electric Cars at Ford's Underutilized Spanish Plant
Ford's Almussafes facility near Valencia has an annual capacity of 450,000 vehicles but has been operating at less than a quarter of that for several years.
It currently builds the Ford Kuga, and soon a Geely model will join the production line.
Geely EX2: China's Best-Seller
Geely has not officially confirmed which model it will build in Spain, but reports point to the EX2, an affordable electric hatchback that was the best-selling new car in China last year.
The EX2 is expected to be produced alongside the Kuga, leveraging Ford's existing infrastructure.
Spanish Prime Minister Pedro Sanchez played a key role in facilitating the deal.
>>> 2027 Genesis GV60 Review: Refined and Premium, But Niche Appeal
Unlike Germany or Italy, Spain lacks a significant homegrown auto industry and has welcomed Chinese investment.
Other Chinese brands are also heading to Spain.
Chery is working with Spanish company Ebro to revive a former Nissan factory in Barcelona, while BAIC is partnering with local firm Santana to build off-road vehicles in Andalusia.
Stellantis will establish a battery factory with Chinese conglomerate CATL in Zaragoza.
Additional details about the Ford-Geely deal are expected later this week when Sanchez speaks with the media at Ford's factory.
>>> Ajax Updates Conference League Squad Ahead of Vojvodina Clash
In May, reports suggested that Ford might build its own EV using the same architecture as the EX2, though this remains unconfirmed.
