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Ford Eyes Geely's Spanish Plant for EV Strategy Shift
4 Feb
Summary
- Ford discussed manufacturing capacity sharing in Europe with Geely.
- The Valencia plant has underutilized capacity, producing one model.
- Talks exclude technology sharing like automated driving.
Ford Motor Co. has entered into preliminary discussions with China's Zhejiang Geely Holding Group concerning manufacturing collaboration in Europe. The central point of negotiation involves the potential sharing of Ford's underutilized assembly plant located in Valencia, Spain. This initiative is a component of Ford's strategic redirection toward electric vehicles and its pursuit of global partnerships.
The talks, which occurred recently when Ford executives visited China, specifically exclude the possibility of sharing advanced technologies like automated driving. The Valencia facility currently produces only the Ford Kuga SUV, with its planned annual capacity significantly exceeding recent output. Geely, a major automotive group that also owns Volvo and Lotus, has indicated a strategy to leverage existing facilities or partner with others to avoid expanding its own plant network due to global overcapacity.
Ford's engagement with Geely follows similar discussions with other Chinese automakers, including BYD Co. and Xiaomi Corp., as the company undertakes a significant overhaul of its EV strategy. While these collaborations represent potential avenues for Ford, the outcome of the preliminary talks with Geely remains uncertain and may not culminate in a definitive agreement.
