The entry of the Chinese company Geely into the factory of Ford Almussafes The deal is increasingly on track and has gone from being a mere rumor to a well-defined industrial operation. Various industry sources indicate that the Asian group has finalized, or is about to finalize, the purchase of part of the assembly facilities at the Valencia plant, a move that could mark a turning point in the future of this historic automotive complex.
Specifically, Geely reportedly agreed with Ford to purchase the body shop. Body 3The most modern area of the technical complex, currently inactive, will be used to launch its own vehicle production line and potentially manufacture a model for the American multinational. The operation responds both to the Chinese brand's need for an industrial base in Europe and to the Valencian plant's interest in recovering production volume and employment.
What would Geely have bought in Almussafes and what is Body 3 like…
According to information reported by automotive media, the Chinese company has acquired a warehouse of approximately 80.000 square meters Integrated into the Ford Almussafes factory and known internally as Body 3. This facility was the last major expansion carried out at the plant and is located in the part closest to the highway, with very direct access to the area's supplier park.
The Body 3 was built just over a decade ago to utilize Ford's CD4 platform and was used to assemble models such as the Mondeo, Galaxy y S-Maxwhich arrived in Valencia after the closure of the Belgian factory in Genk. It is a highly automated facility, which operated with around one hundred people per shift, and which is now practically at a standstill because the only model currently produced in Almussafes, the Ford Kuga, mainly through the Body 1 and Body 2 lines.
The purchase of the building will allow Geely to deploy industrial activity in a way that independentwith its own assembly line separate from Ford's. Despite this, the agreement goes beyond a mere real estate transaction. The Chinese brand would use this facility not only for its own cars, but also as a supplier to Ford, within the framework of a broader industrial collaboration.
A discreet agreement that Ford still calls "speculation"...
Talks between Ford and Geely began a few months ago and were initially leaked by international news agencies and financial media, which reported on a possible swap of manufacturing capacity at the Valencia plant. From the beginning, the multinational with the oval logo has treated the issue with extreme caution and has limited itself to very measured statements.
When asked about this information, Ford Spain has maintained a virtually unchanged official line: “We don’t comment on speculation”The company has reiterated that it is in constant talks with many companies on various matters, emphasizing that some discussions are fruitful and others are not. The UGT, the majority union at the factory, has also adopted a cautious approach, indicating that Ford itself will announce any final decisions through official channels.
Despite this official silence, various sources within the automotive sector confirm that the agreement between the two parties is very advanced and even consider Geely's purchase of Body 3 to be a done deal. Valencian administration I had practically taken the announcement of the agreement for granted and expected it by the end of April, although the official communication has finally been postponed.
What Geely plans to produce: the EX2/E2 and a model for Ford…
Landing of Geely in Almussafes This represents a strategic move to consolidate its industrial capacity in EuropeThe Chinese consortium is considering using the Valencia plant to assemble a multi-energy vehicle advanced. This ambitious project would focus on the Body 3 spacecraft, where versions with propulsion would be manufactured. self-charging hybridplug-in hybrid and fully electric. The key to this versatility lies in the use of the GEA platform, an intelligent architecture that allows technical development to be adapted efficiently to various engines and market segments.
Internally, this model is identified with the 135 code, which would correspond to the European adaptation of the successful Geely EX2. This Compact SUV It stands out for its balanced dimensions, measuring approximately 4,14 meters in length, and its optimized interior space. In its variant of electric mobilityThe car integrates a 116 hp engine and a LFP battery Highly durable. With an estimated range of 325 km and practical solutions such as the front trunk or frunk, the vehicle seeks to replicate in the European continent the excellent sales figures it has already achieved in the Asian market.
The roadmap envisions a deep alliance, as they are studying the development of an exclusive silhouette under the brand. Ford sharing the same technical base. This synergy would allow the American firm to launch a new electrified model Manufactured in Spain, optimizing production costs through the use of modular architecture Geely's plant. Thus, the Valencia factory would be transformed into a nerve center for the energy transitionsecuring its future by manufacturing cars that combine cutting-edge Chinese technology with the quality standards demanded by today's European drivers.
Impact on the Ford Almussafes plant…
The arrival of Geely to the plant Almussafes This occurs in a critical context due to the drastic fall in the automotive production in Valencia. After reaching historic manufacturing milestones, the factory closed recent fiscal years with alarming figures, far from its actual capacity. Currently, activity depends almost exclusively on Ford KugaFollowing the discontinuation of iconic models like the Transit and the Mondeo, this situation has forced the implementation of a ERTE which affects thousands of employees, highlighting the urgent need for new industrial projects to guarantee the viability of the facilities and employment.
Faced with this scenario, the multinational Ford prepares the launch of a new multi-energy vehicle planned for the end of 2027. Although the initial forecasts for annual units have been adjusted, the creation of a pilot plant will allow the reactivation of activity for some of the workforce affected by the temporary suspension. This hybrid model represents a fundamental piece for the Economic recovery from the technical center. The integration of advanced technologies and new assembly lines seeks to stabilize the workload and restore competitiveness to an infrastructure that has been a benchmark in the European sector.
The ultimate success of the factory will depend on combining this launch with the workload that the Chinese group would bring. If both projects materialize, the plant could recover to previous levels. vehicle manufacturing similar to the pre-Covid era, exceeding three hundred thousand units annually. This strategic synergy would not only ensure the future of current jobs but would also open the door to new hires. Thus, the energy transition International collaboration is emerging as the key drivers to revitalize Valencian industry and regain its leadership in the global market.
Advantages for Geely: tariffs, logistics, and industrial ecosystem…
For Geely, the operation has a clear strategic component in the context of European trade policy towards Chinese electric vehicles. Producing in Almussafes allows them to... avoid tariffs that the European Union applies to electric vehicles manufactured in China and at the same time reduce the logistical costs derived from shipping complete cars from Asia.
Spain also offers a number of competitive advantages that have attracted the interest of several Asian manufacturers: a relatively low energy cost Thanks to the weight of renewables, a long experience in car manufacturing —it is the second largest producer in Europe—, a consolidated supply chain and labor and industrial land costs that are attractive compared to other Eastern European countries.
The Almussafes Town Council itself has been making moves for some time to take advantage of this situation and has begun preparing some 600.000 square meters of land Located next to Ford's supplier park, the aim is to attract new investment in the automotive sector, especially from Chinese companies interested in establishing themselves in Spain. The idea is to offer an environment where manufacturers and suppliers can integrate into an already mature production chain.
Competition between Chinese brands to establish themselves in Spain…
Geely is not the only Chinese company that has shown interest in the Almussafes factory or in establishing a production base in Spain. In recent months, names such as [insert names here] have also been mentioned. Changan —Ford's partner in China since 2001— or MG, a brand of the SAIC Motor group, which have also reportedly looked closely at the Valencian facilities. Other companies, such as BYD or Leapmotor, have explored different locations in Catalonia, the Valencian Community, Aragon, Asturias, or Galicia.
Beyond the Valencian Community, there have also been developments in other regions. Some Chinese manufacturers, such as Zhengzhou Nissan Automobile Co y Anhui Coronet TechThey have partnered with Santana Motors to assemble SUVs in Jaén, while an alliance with large European groups, such as Stellantis, is being considered as an alternative to utilize existing factories in Spain.
The growing interest of these groups stems from the shared desire to have assembly capacity in Europe to consolidate its presence in the European market and overcome, as far as possible, trade barriers. In this context, Geely's investment in Almussafes places the Valencian plant in a prominent position compared to other European candidates vying to attract similar investments.
Who is Geely and what role does it play in the European automotive industry?
The conglomerate Zhejiang Geely Holding Group He has gone from being a distant actor to a giant of the automotive industry global. Its western expansion is evident after buying Volvo Cars a Ford and control firms like Polestar, Lotus o SmartWith a strategic vision, the group combines the development of electric cars Competitive through investments in luxury brands. This diversification allows them to cover all segments, consolidating an international presence that now focuses on Southern Europe to strengthen their operational and logistical network.
The arrival of this power to Almussafes This is part of a plan to circumvent tariffs and reduce costs. Spain is a key destination for the vehicle brands seeking stability and established suppliers within the European Union. The use of the Body 3 facility would allow for the production of models of sustainable mobility Closer to end customers, optimizing continental distribution. This strategic move not only benefits the group's competitiveness but also reaffirms the role of Spanish industry as a magnet for foreign technological investment.
For the Valencian plant, this alliance is a historic opportunity to recover its output and guarantee job stability. The integration of new models multi-energy This would offset years of adjustments and declines in manufacturing. Furthermore, the influx of advanced Chinese technology accelerates the energy transition of the national sector, creating an innovation ecosystem. If the agreement is confirmed, the plant would not only secure its immediate future, but would also become a key center for the production of next-generation electrified vehicles for the entire European market.
Images | Geely – Ford
