Geely and Ford: Partnership for EV Production in Europe

Geely and Ford: Strategic Partnership for EV Production in Europe

The entry of Chinese brands into the European electric vehicle market has been a recurring theme in recent years. After BYD, Xpeng, and MG, it's now Geely's turn to expand its presence in the Old Continent. One of the main obstacles faced by Chinese manufacturers is the tariffs imposed by the European Union, which increase the costs of imported vehicles. However, a strategic partnership with Ford may offer an effective solution for Geely.

The Opportunity: Ford's Plant in Valencia

Ford's plant in Valencia, Spain, currently dedicated to producing the Kuga model, might soon become an assembly hub for Geely's electric vehicles. Due to the decline in Kuga sales—only 98,376 units sold in 2025, while the annual capacity is 400,000 units—Ford is seeking alternatives to maximize its plant utilization. Collaborating with Geely would not only fill this idle capacity but also reduce operational costs for both companies.

Production Implications and Tax Benefits

If Geely's electric vehicles are assembled in Spain, they could avoid import tariffs, making them more competitive in the European market. Furthermore, this European assembly could qualify the vehicles for tax incentives, such as the ecological bonus offered in France, provided they meet local manufacturing criteria.

Market Prospects and Competition

With Geely's entry, the European electric vehicle market, particularly in Portugal, will see new competition for models like the Renault 5 E-Tech. Geely's EX2 model, for instance, is designed to compete directly in this segment. Geely already has a strong portfolio on the continent through brands like Volvo and Lynk & Co, and introducing vehicles under its own name could further consolidate its presence.

Technological Collaboration and Future Development

Beyond production, the partnership between Ford and Geely could expand into technology sharing, especially in areas like autonomous driving. Reports suggest Ford has sent a delegation to China to advance negotiations, though no official confirmation has been made by either party.

Final Considerations for the Portuguese Market

For Portuguese buyers, the potential production of Geely's electric vehicles in Europe means access to more affordable and competitive models. Additionally, local presence could improve after-sales support and parts availability. While discussions continue, this collaboration promises to benefit not only the companies involved but also European consumers seeking sustainable and economical alternatives.

What remains to be seen is when and how this partnership will materialize, but the implications are vast and significant for the future of the electric vehicle market in Europe.