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Ford’s European operations may be heading into a major transformation after reports emerged that Chinese automotive giant Geely has signed a deal to acquire part of the automaker’s Valencia factory in Spain. The move signals a growing trend of collaboration between legacy Western automakers and fast-rising Chinese manufacturers as the industry races toward electrification.

According to Spanish publication The Automotive TribuneGeely has agreed to purchase the Body 3 assembly line at Ford’s Almussafes plant near Valencia. The facility, once responsible for producing models like the Mondeo, Galaxy, and S-Max, has remained largely unused since those vehicles were discontinued.

The reported agreement could give Ford an unexpected lifeline in Europe while opening the door for Geely to establish local manufacturing inside the European Union.

Geely Eyes European Expansion

Industry sources suggest Geely plans to use the Valencia production line to build vehicles based on its Global Intelligent Electric Architecture (GEA). The platform supports hybrid, plug-in hybrid, and fully electric drivetrains, giving the company flexibility in a market where consumer demand remains divided between EVs and conventional electrified models.

There are also reports that Ford and Geely are discussing the possibility of producing a Ford-branded vehicle using Geely’s architecture. If confirmed, it would mark another significant outsourcing partnership for Ford in Europe.

The American brand already relies on Volkswagen’s MEB platform for its Explorer and Capri electric SUVs, while Renault is set to manufacture smaller Ford EVs in the coming years.

What this really means is that Ford appears increasingly willing to lean on strategic alliances instead of developing every EV platform independently. With development costs soaring and European EV demand slowing in some regions, partnerships are becoming less of an option and more of a survival strategy.

The EX2 Could Lead the Charge

Spanish reports indicate Geely may build the EX2 compact EV in Valencia. The small electric crossover has become one of China’s biggest automotive success stories.

Launched in late 2024, the EX2 reportedly sold around 465,000 units across China in 2025, making it one of the country’s best-selling vehicles. The model measures just over four metres long and is currently offered with multiple electric powertrain configurations.

Its affordability and urban-friendly size could make it attractive in Europe, particularly as buyers shift toward smaller and cheaper EVs amid rising living costs.

Building the vehicle in Spain would also allow Geely to avoid the European Union’s steep tariffs on Chinese-made electric vehicles, which currently sit as high as 35.4 per cent for some brands.

Europe’s Auto Industry Is Rapidly Changing

The potential Ford-Geely partnership highlights a wider shift happening across Europe’s automotive sector. Traditional manufacturers are struggling with excess factory capacity, expensive EV investments, and growing pressure from Chinese competitors that are moving faster and producing cheaper electric vehicles.

Ford is not alone. Nissan recently confirmed it will shut one of the production lines at its Sunderland plant in the UK, with speculation mounting that Chinese partner Dongfeng could eventually take over part of the facility.

For decades, European factories symbolised the dominance of Western carmakers. Now, those same plants are increasingly becoming gateways for Chinese companies looking to establish a foothold in Europe without trade barriers.

If the Valencia agreement moves forward officially, it may become one of the clearest signs yet that the future of Europe’s auto industry will be shaped not by competition alone, but by unlikely partnerships between old automotive giants and ambitious new players from China.