Ford and Geely reach deal on Spain plant for EV production - ABC newspaper

Investing.com -- Ford Motor and China's Geely have reached an agreement under which the U.S. automaker will sell part of its Almussafes plant near Valencia, according to ABC newspaper on Wednesday.

The deal will allow Geely to manufacture electric vehicles in Spain, ABC reported, citing sources familiar with the matter. An announcement is expected Thursday during a visit to the Almussafes plant by Spanish Prime Minister Pedro Sanchez and Ford Europe President Jim Baumbick.

The agreement will provide Geely, which owns Volvo, Polestar and Lotus, with a manufacturing base inside the European Union. This will help the company avoid EU tariffs on electric vehicles imported from China while providing direct access to the European market, ABC said.

For Ford, the deal will reduce fixed costs through shared use of factory infrastructure while helping to protect jobs and production at Almussafes. The plant's future has been uncertain due to the phasing out of several models and its reliance on its Kuga model.

The agreement will allow Geely to produce its EX2 electric vehicle at Almussafes, the newspaper said.

You May Also Be Interested In

• S&P Dow Jones Indices adds Bloom Energy to S&P 500 index
• Stardust Solar plans $641K convertible debenture private placement
• Justice Department halts antitrust cooperation with Canada - report