Geely is among several Chinese automakers shifting production to Europe. This strategy aims to avoid tariffs and increasingly strict regulations on vehicles imported from outside the continent. The company has agreed to acquire the Body 3 assembly facility at the Almussafes plant in Valencia, according to Tribuna de Automocion. Reports also suggest that automakers are considering allowing Geely to produce a model for Ford at the facility.

This agreement would grant Geely control over the Body 3 assembly line, which previously manufactured the Mondeo, Galaxy, and S-Max models. The Valencia plant boasts an annual capacity of 300,000 vehicles, but currently produces only the Kuga model.

Such a deal would provide Ford's European division with significant cash during a period of declining sales.

A Ford vehicle production line at the Valencia plant, Spain. Photo: Ford

Geely plans to produce vehicles based on its GEA modular platform at the plant. This versatile platform can integrate electric or plug-in hybrid motors and accommodate various body sizes.

Initially, Geely will focus on producing the Galaxy EX2, an electric crossover similar in size to the Ford Puma. This model, known as Galaxy Xingyuan in China, was a best-selling vehicle there in 2025, with production slated to begin in 2025.

In 2025, Ford sources confirmed to Autocar that Valencia would be the production site for an upcoming new crossover. This vehicle is set to indirectly replace the Focus and will be offered in both hybrid and electric versions. Many believe this new crossover could become one of Ford's global best-sellers.

Ford has long sought to leverage partnerships for its European models: the Capri and Explorer utilize Volkswagen's MEB platform, while two new electric vehicles based on Renault's Ampr architecture are expected to launch before the end of the decade.

For Geely, the Valencia deal offers a clear advantage: it would allow the company to avoid the EU's costly 18,8% tariff on electric vehicles imported from China.

The agreement between Ford and Geely regarding the plant sale is reportedly "progressing very well." Geely has already begun contacting suppliers in and around the city of Valencia.

Another Chinese company, SAIC, is also considering a site in the port town of Ferrol, located in northwestern Spain's Galicia region, for European production. In April, Galicia's regional leader, Alfonso Rueda, visited SAIC's headquarters in Zhengzhou on a trip aimed at attracting Chinese investment to the region, according to Reuters.

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