It seems that Ford is in talks with Geely for the sale of part of the Valencia plant. This is reported by Autocar, citing the Spanish newspaper La Tribuna de Automoción. The operation aims to allow the Chinese giant to produce vehicles under the Geely brand for the first time in Europe, with a launch plan linked to a compact crossover mainly intended for the United Kingdom. According to the report, the agreement provides that the Volvo parent company acquires control of the Body 3 assembly department, the line that in the past produced models such as Mondeo, Galaxy, and S-Max.
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Ford and Geely in talks
The Valencia plant has an annual capacity of about 300,000 cars, but today, being mainly used for the production of the Ford Kuga, it operates well below its potential limit. For this reason, a conversion of part of the capacity towards new models for Geely would also represent significant financial support for Ford’s European division, at a time when sales are declining. Geely also aims to produce vehicles based on its own modular GEA platform, capable of hosting electric and plug-in hybrid powertrains on various body sizes.
The Valencia plant at the center
In detail, the initial goal would be the production of the Galaxy EX2, an electric SUV similar in size to the Ford Puma, which in China last year was the best-selling vehicle under the name Galaxy Xingyuan. The report also suggests the possibility that a Ford model based on the GEA platform could be produced at the plant, while last year sources from the US group had already indicated Valencia as the site of a new crossover, to indirectly replace the Focus, with hybrid and electric versions. For Geely, moreover, production localization in Europe would allow reducing the impact of tariffs of 18.8% imposed by the EU on electric vehicles imported from China. It seems that the negotiations between Ford and Geely are at a very advanced stage, with the Chinese giant having already started contacting suppliers in the city and surrounding areas.
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