Ford is in 'very advanced' talks to sell part of EU plant to China's Geely

3 hours ago

Ford and Volvo owner Geely are in advanced talks for Geely to buy part of Ford's Valencia plant in Spain, potentially for assembling a new electric vehicle codenamed '135' (likely the EX2/E2) on Geely's GEA platform.
The deal may involve Geely producing a vehicle for Ford using the same platform, which could help Ford cut costs and compete with Chinese EV makers as it restructures in Europe.
Ford is leveraging partnerships (e.g., with Volkswagen and Renault) and exploring technology sharing with Geely, including on automated driving systems, to address market challenges.
CEO Jim Farley has highlighted Chinese automakers as an 'existential threat' to Western brands, with the Valencia plant sale possibly providing Ford with both technological benefits and cash.
Geely would gain from avoiding EU tariffs by producing in Europe, while Ford plans to launch smaller, affordable EVs on its own Universal EV platform to compete.

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