Incoming EX2 will be the first Geely-badged car built in Europe
Spanish factory has an annual capacity of 300,000 units, but only the Kuga is currently built there
Ford is in talks with Geely over the sale of part of its Valencia plant so the Chinese giant can build Geely-badged electric cars in Europe for the first time – and it will start with a Puma-sized crossover bound for the UK.
The deal, reports Spanish newspaper La Tribuna de Automocion, would see the Volvo owner take control of the Body 3 assembly hall – the line which previously built the Mondeo, Galaxy and S-Max.
Ford’s Valencia plant has an annual capacity of 300,000 units, but as only the Kuga is built there, it is not operating close to that limit. Such a deal, therefore, would give Ford European division a sizeable cash injection at a time when sales are slumping.
The report states that Geely will look to produce models based on its modular GEA platform there, which can accommodate electric or plug-on hybrid power across a range of body sizes.
At first, it would look to build the Galaxy EX2, a Puma-sized electric crossover. It was the best selling car in China last year, where it is badged Galaxy Xingyuan.
Industry sources quoted in the report claim that Geely could also build a Ford model at the plant, based on the GEA platform.
Last year Ford sources confirmed to Autocar that Valencia would be the home of its incoming new crossover that would indirectly replace the Focus and be sold with hybrid and pure-electric powertrains. It was said that the new crossover could become one of Ford’s best-selling model lines globally.
Autocar reported at the time that the model was to share the same production line as the similarly sized Kuga, and therefore is expected to use its C2 platform in an effort to avoid the need for costly alterations to the production line.
However, this new tie-up with Geely could open the door for it to instead be built on GEA, although nothing has yet been confirmed.
Ford has been keen on utilising partnerships previous for its European models; the Capri and Explorer use Volkswagen’s MEB platform while two new EVs built on Renault’s AMPR architecture are due to arrive before the end of the decade.
For Geely, the plant deal would allow it to move production of its EVs to Europe for the first time, and avoid the EU’s costly 18.8% tariffs on EVs imported from China.
La Tribuna de Automocion reports that the deal between Ford and Geely over the sale of the plant is already “very advanced” with suppliers within and around the city already being contacted by Geely.
