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Geely Reportedly Acquires Part of Ford's Valencia Plant for European EV Production

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Image Credit: electrive.net

Ford has reportedly reached an agreement with Geely for the purchase of the "Body 3" assembly hall at its Almussafes (Valencia) plant in Spain. According to a Spanish media report, Geely intends to utilize the facility to build an electrified vehicle for the European market – and potentially a derivative of that model for Ford as well.

The deal has not yet been officially confirmed by either company; currently, it remains a report from "La Tribuna de Automoción," citing unnamed industry sources. According to the publication, Geely is evaluating the production of its own model, internally codenamed "Project 135," in Almussafes. This vehicle would be based on the GEA (Global Intelligent Electric Architecture) platform, which supports a wide range of powertrains, from full-hybrid to plug-in hybrid and pure electric drive. In addition, the possibility of manufacturing a Ford model on the same platform is also under consideration.

The vehicle in question appears to be a derivative of the Geely EX2, which is expected to launch in Europe as the E2. The EX2 itself is the global variant of China's best-selling Yingyuan. This model is designed as a distinctly affordable vehicle, with prices starting at approximately $9,000 (roughly 8,400 Euros) in China. The EX2 measures approximately 13.6 feet (4.14 meters) in length, features a 40 kWh LFP battery, and is powered by a 114 horsepower (85 kW) electric motor mounted on the rear axle. A charging session from 30 to 80 percent is reported to take 25 minutes; Geely has not specified the duration for a charge from the typical 10 to 80 percent range.

"Body 3" represents the most modern facilities at Ford's Valencia plant, although they are presently unutilized. Ford currently manufactures only the Kuga mid-size SUV at the plant, utilizing production lines in "Body 2" and, to a limited extent, parts of "Body 1," according to "La Tribuna de Automoción." Previously, Ford also built the Mondeo, Galaxy, and S-Max lineups in Spain, but these have since been discontinued without direct successors. Ford originally intended to build electric vehicles in Valencia, with the Spanish plant having once secured the allocation over the Saarlouis site. However, since then, news regarding the Spanish electric model has been notably scarce.

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The "Body 3" facilities are reportedly designed to allow Geely to leverage the production capabilities without needing to share supply chains with Ford within the plant. This arrangement would enable the Chinese manufacturer to operate largely independently. The report suggests that Geely has already initiated contact with suppliers in the surrounding area. While the GEA platform accommodates various powertrains, the production of battery-electric vehicles (BEVs) is particularly strategic for Europe, as EU special tariffs apply to BEV imports from China, but not to hybrid vehicles.

In early February, a Reuters report first brought to light preliminary discussions between Geely and Ford concerning "technology and production," as well as Ford's manufacturing capacities in Europe. At that time, details varied, with some reports mentioning Geely's use of Ford facilities and others suggesting joint production. If the information from the current report proves accurate, both scenarios could materialize: Geely operating quite autonomously within Ford's halls, not only for its own production needs but also manufacturing vehicles for Ford.

Should Geely indeed build an electric Ford in Valencia, it would further complicate the U.S. company's European EV strategy. Ford currently offers the Mustang Mach-E, imported from Mexico, in the region. It also builds the Puma Gen-E in Craiova, Romania, based on its own platform, and has completely reconfigured its Cologne plant for electric vehicle production – where the Explorer and Capri, based on Volkswagen's MEB platform, are currently manufactured. Furthermore, a new partnership with Renault was recently established: the French automaker is expected to build electric subcompacts for Ford based on the RGEV Small (formerly AmpR Small) platform, potentially including an electric Fiesta successor. This would result in electric Fords being produced on Ford platforms, the VW platform, the Renault platform, and now, potentially, the Geely platform.


Source: electrive.net

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