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Ford and Geely Explore European Production Tie-Up at Valencia

Talks reportedly focus on filling Ford’s underused Spanish plant as a pathway for Geely to localize output while technology-sharing remains at an earlier stage.

Overview

  • Reuters reports months-long discussions that accelerated with executive meetings in Michigan last week and a Ford delegation to China this week.
  • Sources say manufacturing talks are further along than a potential framework for sharing vehicle tech, including automated driving systems.
  • Ford’s Valencia, Spain facility is viewed as the leading option, with roughly 400,000 annual capacity and output recently near one quarter of that level.
  • Building in the European Union could help Geely avoid provisional EU duties of up to 37.6% on China-made electric vehicles.
  • No agreement has been reached, Ford characterizes the conversations as routine, Geely declines comment, and any U.S.-focused element would likely draw regulatory and political scrutiny.