The rise of China continues: Geely snaps up Ford factory in a bid to bolster exports
In an unprecedented move, China’s Geely has reportedly inked a deal that will see it purchase an entire assembly line at Ford’s Valencia plant in Spain that it will use to build a family of hybrid and all-electric vehicles.
According to Spanish newspaper La Tribuna de Automocion, the new deal will see vehicles based on Geely’s Global Intelligent New Energy Architecture, which includes cars like the Galaxy A7, E5 and EX2 hatch built on the line.
An all-new top-secret model that’s being developed under the ‘135’ codename, which will be offered with hybrid, plug-in hybrid and all-electric power, is also part of the plan.
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It’s unclear if the European-built Geely EX2 will feature the same 30.1kWh or 40.1kWh battery packs offered on cars made in China, but it’s likely the EX2 will come with a battery pack also built in Europe.
As part of the deal, it’s been suggested Ford will gain a small EV based on the same platform as the EX2 that could revive the Fiesta nameplate and provide a new affordable entry EV for the Blue Oval.
The motivation for Geely to snap up a European production hub is to avoid the European Union-imposed tariffs of up to 35.3 per cent that are levied on top of the 10 per cent import duty already imposed on foreign-made cars sold within the region.
The implications for Australia remain unclear, but it’s thought that if right-hand-drive production moves to Europe, the EX2 we get might switch to Euro-spec models.
Meanwhile, Geely has announced its new EX2 electric hatchback will embark on a national dealer roadshow ahead of its Australian showroom arrival in the third quarter of 2026.
The Chinese brand says the EX2, which was first shown locally at the Melbourne Motor Show, will visit metro and regional Geely dealerships across Australia between May and July.
The roadshow will begin in New South Wales on May 4 before heading to the ACT, Queensland, Victoria, South Australia and Western Australia.
Geely says the tour will allow potential customers to inspect the EX2 ahead of the first customer deliveries later this year.
The EX2 is set to join the Geely EX5 electric SUV and Starray EM-i plug-in hybrid SUV in the brand’s growing Australian line-up.
