Geely Acquires Part of Ford’s Spanish Assembly Facility, Eyes European Production
Geely’s Strategic Move into European Automotive Manufacturing
May 6 (Reuters) - Chinese automaker Geely has purchased part of a Ford factory in Spain and plans to build one of its models there, Spanish trade publication La Tribuna de Automocion reported, citing unnamed sector sources.
Background on Geely’s Expansion
Geely, China's second-largest automaker after BYD, is in the midst of wider negotiations first reported by Reuters in February for shared vehicle technologies.
Official Responses to the Acquisition
Geely did not immediately respond to requests for comment on the report published on Tuesday. A Ford representative called the news speculation and declined to comment.
Chinese Automakers and European Production
Geely is one of many Chinese automakers moving to set up production in Europe to skirt tariffs and increasingly strict regulations on importing foreign-made cars.
Details of the Ford Facility Purchase
The company has agreed to purchase the Body 3 vehicle assembly facilities at the Almussafes plant in Valencia, La Tribuna de Automocion reported, adding that the automakers were also considering having Geely build a model for Ford.
Other Chinese Automakers Eyeing Spain
The same publication reported on Wednesday that Chinese automaker SAIC Motor was considering a site in the northwestern Spanish port town of Ferrol, in Galicia, for production in Europe, citing unnamed sources familiar with negotiations.
The Galician government did not immediately reply to a request for comment.
Galician Government’s Efforts to Attract Investment
In April, Galician Premier Alfonso Rueda visited SAIC Motor's headquarters in Zhengzhou on a trip intended to attract investment from China to the region.
(Reporting by Javi West Larrañaga in Gdansk, Editing by Victoria Waldersee and Bill Berkrot)
