<div id="readability-page-1"><div id="news-body">(Yicai) May 7 -- Chinese carmaker Geely Automobile Holdings has reportedly reached an agreement with Ford to buy the US carmaker's workshop in Valencia to be able to independently manufacture cars in Spain.Geely will buy the Body 3 assembly shop of Ford's Almussafes plant, La Tribuna de Automoción reported yesterday, citing industry sources. Geely plans to manufacture a new energy vehicle model based on its Global Intelligent New Energy Architecture, as well as another model for Ford, at the factory, the local media outlet noted.While Ford clarified that no final decision has been made yet, Geely's spokesperson for Europe said that the company does not comment on speculative reports.A source familiar with the matter told Yicai that Geely and Ford have indeed been in contact for some time, but it is still uncertain whether a final agreement has been reached.If the transaction is completed, Geely could save on high import tariffs, and Ford could enhance the capacity utilization rate of its Valencia factory, according to analysts.Last year, production at Ford's Valencia plant dropped nearly 18 percent to 98,500 vehicles from the previous year, significantly below its designed annual capacity of 400,000 units.The overall tax burden for Chinese electric vehicle exports to the European Union can reach up to 45 percent. Therefore, Chinese carmakers have been actively establishing factories overseas and building local supply chains, as well as acquiring idle production capacity overseas in recent years.BYD bought Ford's Camaçari plant in Brazil in 2023, and Great Wall Motor acquired General Motors' vehicle assembly plant in Thailand in 2020. Moreover, Mercedes-Benz Group was reported in March to be considering selling its South African factory to Great Wall Motor, and Chery Automobile reached an agreement with Nissan Motor in January to buy its Rosslyn plant in South Africa by mid-2026.Given the EU imposition of anti-subsidy tariffs on Chinese EVs and emerging markets' high import tariffs on complete vehicles, buying and transforming mature production lines abroad has become one of the optimal pathways for Chinese automakers to expand internationally. In fact, compared to the three to five years typically required to build a factory from scratch, acquiring and upgrading existing facilities only takes about a year to start production.The sustained growth of Chinese auto sales overseas is the demonstration of the country's industrial advantages during the global transition from internal combustion engines to new energies, said Cui Dongshu, secretary-general of the China Passenger Car Association. This shift is driving a transformation in the global automotive industry landscape from a domination by Europe, the United States, and Japan to a diverse competition among China, the US, Europe, and Japan, he added.However, data from Roland Berger shows that the localization rate of Chinese automakers overseas remains in the third tier, much lower than the levels of Japanese and European brands.Editor: Futura Costaglione</div></div>

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Geely Automobile Holdings is reportedly set to acquire Ford's Body 3 assembly shop in Valencia, Spain, to manufacture vehicles independently. The deal aims to produce a new energy vehicle model and another for Ford. While Ford has not confirmed the agreement, analysts suggest it could help both companies optimize production and reduce import tariffs. The move aligns with a trend of Chinese automakers establishing overseas production to navigate high tariffs on EV exports to the EU. This acquisition could expedite Geely's international expansion compared to building new factories from scratch.

- Geely Automobile Holdings has reportedly reached an agreement with Ford to acquire the Body 3 assembly shop at the Almussafes plant in Valencia, aiming to manufacture new energy vehicle models.  
- This acquisition could help Geely avoid high import tariffs and improve the capacity utilization rate of Ford's factory, which saw a significant drop in production last year.  
- The growing trend among Chinese automakers to acquire overseas production facilities is driven by high tariffs and aims to enhance their competitive positioning in the global automotive market.

Geely to Take Over Ford's Idle Workshop in Valencia, Spain, Report Says