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Geely Spain factory
Marko Lubar
Posted on - 06 May 2026

Geely could soon become much more visible in Europe’s manufacturing scene. According to ChinaEVHome, the Chinese automotive giant has acquired the production line from Ford in Almussafes, Spain, where it reportedly plans to build one of its own vehicles.

The move makes a lot of sense. Right now, Geely faces EU tariffs of up to 28.8 percent on electric cars imported from China, which makes pricing less competitive in Europe. Building cars locally would help the company avoid those extra costs while also giving it a stronger foothold in one of the world’s most important EV markets. With competition growing fast across Europe, local production is starting to look less like an option and more like a necessity for Chinese brands aiming to stay competitive long term.

Table of Contents

Geely Has Become One Of The Biggest Automotive Groups In The World

Geely might not always be the first name that comes to mind in Europe, but it is already one of the biggest players globally. The company has steadily worked its way into the top tier of car manufacturers, helped by strong growth in both electric and conventional vehicles.

Geely Spain factory
The Geely EX5 is one of the most affordable EVs in Europe (Credit: Geely)

A big part of that success comes from its portfolio. Geely is not just one brand, but a group that includes Volvo, Polestar, Zeekr, and Lynk and Co, all of which already have a presence in Europe. Each of these brands targets a slightly different audience, from premium buyers to more design focused and tech oriented customers.

>Related: Geely EX5 – Official Specs For Europe

That mix gives Geely a lot of flexibility. It can compete in multiple segments at once, which is becoming increasingly important as the EV market continues to expand and diversify.

Why Europe Is Becoming A Priority For Chinese Manufacturers

There is a clear shift happening right now. Instead of simply exporting cars into Europe, Chinese manufacturers are starting to invest more heavily in local operations. For Geely, this is not just about avoiding tariffs, although that is clearly a big factor. Producing cars in Europe also helps reduce delivery times, improve supply chains, and build stronger ties with local suppliers and governments.

>Related: Top 7 Most Affordable EV SUVs in the United Kingdom

Spain, in particular, is becoming an attractive location for this kind of investment. The country already has a well established automotive industry, and it is now positioning itself as a key hub for electric vehicle production. If Geely moves ahead with its plans, it would join a growing list of manufacturers that are shifting part of their production closer to European customers.

The Ford Connection Adds Another Interesting Angle

One detail that stands out in the report is the potential cooperation with Ford. The idea that the same factory could produce both a Geely model and a Ford vehicle says a lot about how the industry is evolving.

Geely Spain factory Geely EX2
The Geely EX2 could become the first model to be produced in Almussafes (Credit: Geely)

Not that long ago, this kind of collaboration would have seemed unlikely. Today, it is becoming more common. Traditional manufacturers are increasingly open to working with Chinese companies, especially when it comes to electric vehicle platforms, batteries, and software. For Ford, a partnership like this could help reduce development costs and speed up its EV plans. For Geely, it is another way to integrate itself more deeply into the European automotive landscape.

What This Could Mean For Europe’s EV Market

If this plan goes ahead, it is another sign that Chinese carmakers are no longer just outsiders in Europe. They are starting to become part of the system, investing in factories, creating jobs, and building cars locally.

For buyers, that usually means more choice and, in many cases, better value. Competition is already intense in the EV space, and moves like this will only push manufacturers to improve their offerings even further.

At the same time, it shows how quickly the balance of the global car industry is shifting. European brands are still strong, but they are now facing serious competition from companies that are willing to move fast and invest heavily in new markets. Geely’s next steps in Spain will be worth watching, because they could say a lot about where the local EV market is heading next.

FAQ

What is Geely planning in Spain?
Geely is reportedly planning to produce electric vehicles at the Almussafes plant, including its own model and potentially one for Ford.

Why does Geely want to build cars in Europe?
Local production helps avoid EU tariffs of up to 28.8 percent and improves competitiveness in the European market.

Is Geely already present in Europe?
Yes, through brands like Volvo, Polestar, Zeekr, and Lynk and Co, Geely already has a strong presence in Europe.

Will Geely work with Ford?
Reports suggest the Spanish factory could produce a model for Ford, although details are still not fully confirmed.

How will this affect European buyers?
More local production could lead to better availability, competitive pricing, and more choice in the EV market.

Featured Image Credit: Geely

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