After completing the acquisition of Volvo 16 years ago, Geely and Ford may join hands again.
But this time, it's totally different. The roles of the two sides have completely reversed.
According to multiple overseas automotive media reports, between 2027 and 2030, Ford will launch four all-new battery electric vehicle (BEV) models in Europe. However, all of these models will be developed and manufactured by Geely, with Ford responsible only for exterior design and market sales.
In simple terms: Geely builds the cars; Ford puts its badge on them.
The core underpinnings are developed in-house by Geely, and the Chinese brand also takes full responsibility for vehicle manufacturing. Ford's involvement is limited to independently designing the exterior and interior styling of the four models, adapting local European infotainment systems, and leveraging Ford's mature European sales network for final delivery.
Life is full of ups and downs. Sixteen years ago, Geely borrowed billions to acquire a brand and technology with real money. Today, it has already transitioned to exporting technology in reverse. As of now, neither Geely nor Ford has issued an official response.
According to the overseas automotive media outlet Autocar, the four new European BEVs Ford plans to launch between 2027 and 2030 will fully adopt Geely's GEA (Global Intelligent New Energy Architecture) for intelligent new energy vehicles, without using any of Ford's self-developed BEV platforms.
For these four models, including the three-electric system (battery, motor, and electronic control), battery packs, electronic control logic, chassis hardware, core component supply chains, vehicle quality control systems, and manufacturing standards, all will be defined and led by Geely.
Preliminary plans and timelines are already clear. The first model will be the all-new Ford Puma EV, set for release in 2027.
In 2028, a small all-electric crossover SUV will follow, slightly different in size, targeting urban commuting and multi-purpose use. In 2029, a compact all-electric SUV, higher in segment, will be launched. Then, in 2030, a BEV MPV exclusive to the European market will be introduced, aiming at family use and a more premium positioning.
Ford's role in this partnership is limited to operational aspects, such as exterior and interior design, adapting the infotainment system for European users, and making use of its established European sales network for final delivery. Ford will carry out independent styling for these four models, and the interface design will follow Ford's own traditions.
Essentially, this means Ford is putting its exterior, interior, and branding on a "white-body" vehicle provided by Geely.
Although neither side has officially responded, the collaboration appears almost certain. Recently, the Spanish automotive authority La Tribuna de Automoción reported that Geely is set to acquire a Ford factory in Spain, with an agreement already reached.
According to the report, Geely will acquire the "Body 3" assembly line at Ford's Almussafes plant in Valencia, Spain.
The plan has two aspects. First, Geely will produce its own models there, including a vehicle with the internal code "135," based on Geely's GEA architecture, offering hybrid, plug-in hybrid, and pure electric powertrains. This is widely believed to be an overseas version of the EX2 (the Geely Xingyuan series). Second, for contract manufacturing, Geely and Ford are in discussions to produce a new Ford model on the same Geely architecture, filling the production capacity gap at the plant.
Ford's Valencia plant was built on an orchard acquired by Henry Ford II. With nearly 50 years of manufacturing history, production began in 1976. It has produced models such as the Ford Transit Connect, Tourneo Connect, and Kuga, with total output exceeding 11 million vehicles. It was once Ford's largest plant outside the United States.
The factory is divided into three lines. Geely will acquire the most advanced Line 3, which spans over 80,000 square meters and has been idle since the discontinuation of the Galaxy and S-Max MPVs in 2023.
Line 1 is semi-idle, previously used for Mondeo and S-Max models based on Ford's CD4 midsize platform. With those models discontinued, the line is underutilized. Line 2 currently produces only the Ford Kuga. In 2025, the plant's output fell 17.6% year-on-year to 98,500 units.
As a result, overall capacity utilization at the plant is below 25%, which explains Ford's decision to sell certain assets to reduce pressure.
Interestingly, Chinese manufacturers such as BYD and Xiaomi had previously appeared on the list of potential acquirers.
If the acquisition is completed, the factory is expected to be retooled and operational by the first quarter of 2027, with an annual production capacity of 300,000 units at full scale. Geely will then take full control of line operations, production scheduling, and supply chain management. Moreover, the four Ford BEV models will be produced alongside Geely's EX2 European version on the same line, enabling dual-brand manufacturing on one production line.
Sixteen years ago, Geely acquired Volvo outright from Ford for $1.8 billion. At that time, Geely was the "chaser," using capital to obtain a brand and technology.
Sixteen years later, the situation is completely different.
In 2025, Ford's global wholesale sales reached approximately 4.395 million units, a 2% decline year-on-year. Ford was overtaken for the first time by BYD (4.602 million units) and fell out of the top five global automakers by sales. Meanwhile, Geely's global sales exceeded 4 million units for the first time, a 26% year-on-year increase, marking an all-time high.
The role reversal has begun. Today, Geely is the technology exporter, while Ford, due to strategic contraction and excess capacity, seeks to exchange its production capacity for technology.
For Ford, the most immediate benefit is increasing plant capacity utilization and revitalizing idle assets. Low output inevitably leads to operational losses, turning the factory into a profit drain. Moreover, this deal would bring a significant capital inflow to Ford's struggling European division.
It would also help avoid large-scale layoffs at the Valencia plant, securing jobs for the existing 4,000-plus workers. More importantly, Ford would gain access to advanced electrification technology through the partnership, injecting fresh momentum into its European product lineup, a clear case of "asset optimization."
For Geely, acquiring Ford's existing, mature production line can significantly reduce upfront investment, allowing more resources to be directed toward R&D and market expansion, while accelerating production timelines.
Although the transaction amount has not been disclosed, industry estimates place it at just 300–500 million euros. In comparison, building a new factory of the same scale would cost 1.5–2 billion euros—about one-fifth of that, while saving two to three years of construction time.
Li Shufu, Geely's founder, once said that the auto industry today is plagued by severe overcapacity, and the most pragmatic cooperation lies in making the best use of existing resources. More importantly, through this deal, Geely directly obtains "Made in the EU" status, significantly circumventing trade barriers.
The timing of Geely's acquisition of Ford's Spanish production line coincides with the EU's tightening tariff policy on Chinese electric vehicles. The EU has been imposing additional tariffs on Chinese-made EVs, with combined rates reaching as high as 45.3%. This means that exporting an EV from China to Europe would see a large portion of profit margins eroded by tariffs. As a result, "borrowing a nest to lay eggs" has become the optimal solution.
And Geely has already validated this model: in South Korea and Brazil, it supplies technology to Renault, producing Renault-badged models in Renault's factories, helping revitalize the brand's overseas sales. Now, this "technology for distribution network" approach may be replicated in Europe.
"European badge, Chinese car"—in a way, this represents another blueprint for Chinese automakers going global.
After all, the EU's "anti-subsidy investigation" into Chinese electric vehicles remains unresolved, and the risk of additional tariffs hangs like a sword of Damocles. Faced with huge cost pressures from high tariffs, using existing overseas local factories—either directly or through equity partnerships—has become a mainstream option for Chinese automakers expanding abroad.
Many Chinese brands are also acquiring other automakers' factories to rapidly scale up overseas production.
For example, BYD is building its first European passenger car plant in Hungary; Xiaopeng Motors has achieved localized manufacturing through production resources in Austria.
SAIC Group, after acquiring the British brand MG, has gone global under the MG name. GAC has partnered with Stellantis: the GAC GS5, rebadged as a Dodge Journey, has been launched in Mexico, with cumulative exports exceeding 20,000 units, becoming a key force in GAC's overseas expansion.
Recently, Stellantis also announced deeper cooperation with Leapmotor, planning to redesign the Leapmotor B10 electric SUV under its Opel brand.
As more Chinese cars go global wearing overseas badges, the dream of the Chinese automotive industry is finally coming true.
(Source: EV Lab)
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