Geely is buying Ford's idle Spanish factory line to dodge EU tariffs

By: Anton Kratiuk | 06.05.2026, 11:32

Geely is in advanced talks to acquire the Body 3 assembly line at Ford's Almussafes plant near Valencia, Spain, and use it to build electric and hybrid vehicles for the European market. The deal, reported by La Tribuna de Automoción, would let the Chinese automaker sidestep the EU's 18.8% additional tariff on Chinese-made EVs by manufacturing locally. Neither Ford nor Geely has issued a formal announcement — both describe "ongoing conversations" — but Spanish press says the agreement is largely finalised.

The factory angle

The Almussafes plant once made the Ford Mondeo, Galaxy, and S-Max. All three models are gone, and Body 3 has sat idle ever since. Ford's Kuga — the only model still built there — uses separate lines (Body 1 and Body 2), so the two operations would stay independent. The facility has a total capacity of around 400,000 vehicles a year, and Geely's plans call for more than 300,000 units annually once fully running, a scale that would mean significant new employment for the Valencia region.

The platform and the car

All production would use Geely's GEA (Global Energy Architecture) platform, which supports battery-electric, plug-in hybrid, and conventional hybrid drivetrains from a single base. The project runs internally under the codename "135." The first model off the line is expected to be the Geely EX2 — a compact SUV measuring 4,135 mm long — which was China's best-selling car of any kind in 2025, moving 465,775 units, per La Tribuna de Automoción.

What UK buyers can expect

The EX2 is confirmed for the UK this summer, with pricing expected at around £20,000, according to Auto Express. That puts it squarely against the Renault 5 (from £21,500) and the MG4 Urban (from £23,500). Two battery options are offered in China — 30.1 kWh and 40.1 kWh — with CLTC-rated ranges of 310 km and 410 km respectively; real-world WLTP figures for the European version are estimated at 150–200 miles. Power comes from a rear-mounted electric motor in either 79 hp or 116 hp form.

One speculative thread worth flagging: the UK source suggests Ford could eventually develop its own model on the GEA platform — potentially a successor to the Puma. No corroboration for that exists yet, and the Puma Gen-E is already on sale on a separate platform, so treat it as an unconfirmed rumour for now.

The bigger picture

The Almussafes move mirrors BYD's 2025 acquisition of a Volkswagen plant in Dresden — another Chinese brand planting roots inside the EU to avoid import duties. For the Valencia region, it converts a near-empty factory into a potential hub for 300,000 vehicles a year. For European rivals, it means another well-funded Chinese nameplate competing on price, this time built on home soil.