Geely Automobile Acquires Ford's Spanish Plant, Intensifies Push into European Market

*This content was translated by AI.

Chinese automaker Geely Automobile is set to acquire Body Shop 3 at Ford's Almusafes plant in Valencia, Spain, with plans to produce its own vehicles as well as Ford-branded models.

According to sources in the automotive industry, including Reuters and Spanish automotive trade publication La Tribuna de Automoción, Ford and Geely Automobile have signed an agreement to acquire the Body Shop 3 facility at the Almusafes plant. This acquisition provides Geely with the foundation to independently develop vehicle production. The facility originally began operations in May 2015 to assemble Mondeo, Galaxy, and S-Max models using BMW's CD4 platform. Production was relocated to Spain following the closure of Ford's Genk plant in Belgium. However, the Almusafes Body Shop 3 complex is currently non-operational, with only the Kuga model being primarily produced on Body Shop 2.

Geely Automobile plans to produce its own vehicle, internally designated as project 135, alongside Ford-branded models at this plant. These vehicles will be built on the GEA (Global Intelligent Electric Architecture) platform and will offer a range of powertrain options, including self-charging hybrid, plug-in hybrid, and fully electric variants. The facility will utilize a multi-energy modular platform capable of developing diverse models ranging from compact cars to premium sedans. Industry sources indicate that Geely is also in negotiations regarding the potential production of Ford vehicles.

The vehicle to be produced by Geely is believed to be the EX2 (European designation E2). This model is a compact SUV measuring 4.13 meters in length, equipped with a 114-horsepower electric motor and a 39.4kWh LFP battery, enabling a maximum range of 325 kilometers under WLTP standards. Since its launch in November 2014, the model has sold 465,775 units in China last year, making it the best-selling passenger car model overall. According to a mid-April report by Spanish economic newspaper Economía Digital, Geely has already contacted suppliers in the Valencia region to propose vehicle assembly, signaling significant progress in the project's advancement.

If Geely's manufacturing activities at the Almusafes plant are combined with the multi-energy vehicle project commissioned by Valencia in March 2024, the plant is expected to recover production levels to pre-pandemic standards in the medium term. At that time, the facility produced over 300,000 units annually across five models and maintained employment for more than 4,000 workers. The media analysis suggests that expanding production capacity will likely require additional hiring.

In response to inquiries regarding the matter, Ford stated, "We are in continuous discussions with various companies on multiple matters. Sometimes deals are finalized, and sometimes they are not. Nothing has been officially confirmed yet." However, local media interpret the situation as part of Geely's ongoing desire to acquire factories in Europe, drawing parallels to recent developments such as BYD's acquisition of Volkswagen's Dresden plant in Germany. Meanwhile, Geely's premium brand, Zeekr, officially launched its brand in Korea on the 6th of this month and has begun full-scale sales.

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*This content was translated by AI.