Geely is reportedly moving to expand its manufacturing footprint in Europe through a deal involving Ford’s plant in Spain according to industry reports. The rumors says Geely has agreed to acquire the “Body 3” assembly facilities at Ford’s Almussafes plant in Valencia, where it plans to produce one of its own models. Neither company has confirmed the agreement, with Ford calling the reports speculation and Geely declining to comment.
The potential deal reflects a broader trend of Chinese automakers establishing production inside Europe. Companies such as Geely are seeking to reduce exposure to EU tariffs on imported electric vehicles while also meeting increasingly strict regulatory requirements on emissions and local sourcing. Producing vehicles within Europe also reduces shipping costs and improves access to regional markets.
Geely, China’s second-largest automaker after BYD Auto, has been engaged in wider discussions with Ford since earlier this year. Those talks reportedly include possible technology sharing and collaboration on vehicle development. Some reports suggest Ford and Geely have even considered producing a model jointly in Spain using shared platforms or technology.
The Almussafes plant in Valencia is seen as strategically attractive because it already has established automotive infrastructure and available production capacity. Ford has been restructuring its European operations, leaving portions of the factory underutilized.
Spain is increasingly positioning itself as a hub for Chinese automotive investment. Other manufacturers, including SAIC Motor, are also exploring production sites in the country, with interest reported in locations such as Ferrol in Galicia. Regional governments have been actively courting investment to boost industrial activity and jobs.
If confirmed, the Geely-Ford arrangement would highlight the growing integration between European and Chinese automakers, as legacy manufacturers look for cost-effective EV solutions and Chinese firms accelerate their global expansion.
