- Geely plans to use the line to produce a model based on the GEA architecture, likely a localized European version of the Geely Xingyuan.
- In addition to meeting its own brand's capacity needs, Ford may also launch a co-developed model based on Geely's technology platform.
Chinese auto giant Geely Auto (HKG: 0175) has reached an agreement to acquire the Body 3 assembly line at Ford Motor's Almussafes plant in Valencia, Spain, Spanish media outlet La Tribuna de Automoción reported Tuesday.
By taking over the currently inactive facility, Geely is expected to establish independent vehicle manufacturing operations in Europe.
Geely plans to use the line to produce a new energy vehicle (NEV) model based on the GEA (Global Intelligent New Energy Architecture) platform, the report said, citing an industry source familiar with the negotiations.
Currently identified by the internal code 135, the vehicle is believed to offer European consumers three powertrain options: hybrid, plug-in hybrid, and fully electric, the report said.
The NEV model is likely a localized European version of the compact electric SUV Geely EX2 (Xingyuan in China), the report noted.
Aside from meeting Geely's own capacity needs, Ford could also potentially launch a collaborative model based on this Geely technology platform, the report said.
If a comprehensive manufacturing partnership is successfully reached, the Valencia plant's overall capacity could rebound to pre-Covid-19 levels, when the facility produced five models with an annual output of over 300,000 vehicles.
Geely plans to leverage Ford's existing manufacturing infrastructure in Europe to produce vehicles for the local market, strategically bypassing tariff pressures.
As legacy overseas automakers, including Ford and Nissan, continue to shrink inefficient combustion-engine capacity, Chinese domestic brands are actively taking over idle capacity globally.
China's automotive globalization strategy is completing a critical evolution from simple product exports to building localized overseas supply chains in response to rising trade barriers.
In February, Reuters reported that Ford and Geely were in talks over a potential partnership, as both sought to share increasingly complex technology and manufacturing costs.
The two sides discussed Geely using Ford's European plants to produce vehicles for the European market, and also explored a potential framework for sharing automotive technologies, including autonomous driving, according to a February 4 report by Reuters.
