Geely to Produce Electric Vehicles at Ford Plant in Spain

The Chinese automaker Geely will establish its first production site within the European Union by utilizing an idle assembly line at a Ford Motor Company facility in Almussafes, Spain. Spanish Prime Minister Pedro Sanchez announced the deal on Thursday, framing the agreement as a means to preserve industrial activity at the plant.

The Almussafes facility, previously Ford's largest plant outside the United States, has struggled with underutilization since Ford scaled back its European operations in 2023. The site has been operating at less than 25% of its annual capacity to produce 450,000 vehicles.

By localizing production in Spain, Geely can bypass EU tariffs imposed on electric vehicles manufactured in China. This strategic shift follows a broader trend of Chinese automakers establishing European footprints to navigate trade barriers and manage industrial overcapacity.