Geely Automobile, a China-based carmaker under Geely Holding Group, said on July 23 that its wholly owned unit GeelySPV agreed to pay 221 million euros (US$252 million) for a 34% stake in a Spanish company from FordNL, while FordNL will retain 66%.

GeelySPV, FordNL, and the Spanish company also plan to form a joint venture to contract-manufacture passenger vehicles in Valencia, Spain.

The joint venture is due to begin operations in the first half of 2027.

Geely said two new energy vehicle models are planned for production at the Valencia plant, with the first vehicle expected off the line in 2028.

Ford said the site would continue producing the Kuga and plans to add a compact sport utility vehicle in the Bronco family and a new Ford-branded crossover, both targeted for 2028.

The deal would give Geely a manufacturing base in the European Union that could help it avoid tariffs on electric vehicles imported from China.

The European Union’s duties on Chinese battery electric vehicles have risen to as much as 35%, on top of an existing 10% duty.

It also follows Ford’s June 2024 plan to cut about 1,600 jobs at its Valencia plant.

🔗 Source: Cailianshe