Geely Plans Local Production at Ford’s Spanish Plant to Avoid EU Tariffs

To circumvent the high tariffs imposed by the European Union on Chinese-made electric vehicles, Geely is in deep discussions with Ford about an industrial partnership that would utilize Ford’s idle production capacity at its Valencia, Spain plant to manufacture Geely-branded vehicles. The facility currently primarily produces the Ford Kuga SUV. If the collaboration materializes, Geely would achieve localized manufacturing in Europe, enhancing its price competitiveness, while Ford could boost plant utilization without requiring additional investment. This move highlights a new trend among global automakers—leveraging shared resources to navigate shifting market dynamics amid trade barriers and rising costs. For Geely, local production represents a crucial step in expanding its own-brand presence in the European market, despite already owning brands like Volvo and Lotus, which still have limited sales volumes in the region.