Ford Considering Selling Part of Valencia Plant to Geely

Ford is reportedly engaged in advanced negotiations with Geely for the sale of part of its Valencia plant in Spain, as part of a broader strategy to reorganize the American brand's European operations. According to various sources close to the matter, the Chinese company, which owns Volvo, is interested in acquiring the production lines known as "Body 3", with the aim of using them to produce a new electrified model.

The project in question, internally identified by the codename "135", could lead to the future Geely EX2, a compact car available in hybrid, plug-in hybrid, and electric versions. The vehicle is expected to be based on the GEA platform, or the Global Intelligent Electric Architecture developed by the Chinese group. In its home country, the EX2 has already achieved excellent commercial results, becoming one of the best-selling cars in China last year. In Europe, it may be marketed under the name E2.

Reportedly, the potential agreement would not only concern the use of the production facility. Geely is also considering producing a model intended for Ford, utilizing the same technical architecture. Discussions are already at a very advanced stage, and the Chinese group has even begun contacting suppliers in the Valencia area.

Ford's Position on the Matter

When asked about the issue, Ford maintained a cautious stance, explaining that it is in constant contact with numerous companies to evaluate industrial and technological opportunities, without confirming any definitive agreements.

This operation takes place in a particularly delicate context for Ford in Europe, where the manufacturer is trying to reduce costs and increase competitiveness against Chinese brands specialized in electric cars, including BYD. The American company has already established strategic collaborations with other manufacturers: the electric models Explorer and Capri share the MEB platform of the Volkswagen group, while in December a partnership was announced with Renault for new budget EVs based on the Ampere platform.

A previous report from Reuters had also suggested that discussions between Ford and Geely included sharing advanced technologies, including ADAS systems and automated driving solutions. For Ford, the sale of part of the Spanish plant could represent an opportunity to gain liquidity and access new technologies. Geely, on the other hand, would benefit from local production in Europe, reducing the impact of EU tariffs imposed on Chinese manufacturers in 2024.