Geely Acquires Ford’s Valencia Plant for European Urban EV Production

On July 23, Geely Automobile signed an agreement with Ford Motor Company to acquire Ford’s Body3 plant in Valencia, Spain. Originally built in 1976, the factory was initially designed with an annual production capacity of 400,000 vehicles. Prior to Geely’s acquisition, the plant had fallen into difficulties due to insufficient demand. Starting in 2024, Ford gradually ceased production of models such as the Mondeo, S-Max, and Galaxy at the facility, leaving only the Escape assembly line operational, while the Body3 production line has remained idle. Geely plans to use the plant to manufacture its compact electric vehicle EX2—marketed domestically as the "Xingyuan"—targeted at urban commuters in the European market. This acquisition grants Geely local manufacturing capabilities in Europe, helping it circumvent potential tariff barriers on electric vehicles exported from China. The specific financial terms and implementation timeline of the deal have not yet been disclosed. Spanish Prime Minister Pedro Sánchez and Jim Baumbick, Vice President of Ford Europe, will jointly attend an event at the plant to underscore the significance of this collaboration.