Ford sells part of Spain plant to Chinese rival Geely

Ford is reportedly close to finalizing an agreement to sell a portion of its manufacturing plant in Valencia, Spain, to its Chinese competitor, Geely. Spanish newspaper "ABC" cited insider sources, indicating an official announcement was expected Thursday. The move would grant Geely a crucial production base within the European Union. This strategic positioning would allow the Chinese automaker to circumvent potential EU tariffs on electric vehicles imported from China and secure direct access to the European market. An auto analyst at Macquarie Capital noted that the deal reflects the urgency for Chinese car manufacturers to seek growth beyond their saturated domestic market. For Ford, the arrangement offers a way to reduce fixed costs through shared factory infrastructure and secure the future of the Valencia plant, whose operational capacity had recently been uncertain. Geely's portfolio includes well-known European brands such as Volvo, Polestar, and Lotus. Reports suggest the Geely EX2 electric model will be produced at the Almussafes facility in Valencia. This is not Geely's first international partnership aimed at market expansion; the company has previously collaborated with manufacturers like Renault to accelerate its access to foreign markets. The agreement underscores a growing trend of global automakers seeking strategic alliances to navigate complex international trade landscapes and manufacturing challenges.