Ford Motor and Geely: A Landmark Deal Shaping the EV Market in Europe

Ford Motor has agreed to sell part of its Almussafes plant in Spain to China's Geely. This strategic move allows Geely to manufacture electric vehicles in Europe, thus bypassing EU tariffs, while Ford benefits from shared costs and job preservation at its plant, which faces uncertainties.

In a groundbreaking move, Ford Motor announced a remarkable agreement with China's Geely. The U.S. automaker will sell part of its Almussafes plant near Valencia, which could significantly reshape the electric vehicle (EV) market in Europe.

This deal provides Geely, the Chinese owner of Volvo and Polestar, with a strategic manufacturing base within the European Union, offering a means to sidestep EU tariffs on imported EVs while granting direct market access. Sources reveal that the official announcement may come during a planned visit by Spanish Prime Minister Pedro Sanchez and Ford Europe President Jim Baumbick.

The arrangement is mutually beneficial, aiding Ford in reducing fixed costs through shared infrastructure. It also aims to protect jobs at the Almussafes plant, which has been hit hard by the phasing-out of older models, and will enable Geely to start production of its EX2 electric vehicle in Europe.