Ford and Geely Agree to Share Underused Spanish Auto Factory

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Or sign-in if you have an account.(Bloomberg) — China’s Geely has agreed to take over part of a Ford Motor Co. factory in Spain, according to people familiar with the matter, adding to a string of Chinese investments reshaping the country’s auto industry.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSpanish Prime Minister Pedro Sanchez is set reveal the deal at the plant near Valencia on Thursday, said the people, who asked not to be named ahead of the announcement. The Chinese automaker will build vehicles on an idle assembly line at the facility, where Ford also makes the Kuga crossover, the people said.The collaboration, in the works for months, highlights Sanchez’s determination to increase Spain’s role in European automaking as the segment restructures. The premier has been courting Chinese carmakers by providing a local manufacturing base to sidestep European Union tariffs, while offering a deep supplier network, skilled labor and low energy costs.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againA government spokesman confirmed Sanchez plans to make a statement at the Almussafes plant on Thursday, declining to comment further. Geely declined to comment. Ford representatives didn’t respond to requests for comment.Local news outlet Las Provincias reported earlier that Sanchez plans to visit the factory on Thursday to formalize the arrangement. Talks have been underway since earlier this year.China’s Chery Automobile Co. and Spanish brand Ebro have revived a former Nissan factory in Barcelona that now employs more than 1,500 people. BAIC Motor Corp. is set to produce off-road cars with resuscitated brand Santana in the Andalusia region. The most ambitious plan is the partnership between Stellantis NV and CATL for a €4.1 billion ($4.7 billion) battery factory in Zaragoza that is set to start operations in 2028.Unlike Germany, France and Italy, Spain lacks a major homegrown automaker. Sanchez and his team contend the Chinese investments can help safeguard manufacturing jobs while speeding the transition to electric vehicles.The government has said Chinese investments will create thousands of jobs while acknowledging that some projects initially will rely on Chinese workers and technology.Ford has a longstanding relationship with Geely, having sold Volvo Cars to the Chinese company 16 years ago.Bringing Geely in could help boost utilization in Valencia and preserve or restore jobs. The Almussafes plant — once Ford’s largest outside the US — has been running at less than a quarter of its annual capacity of 450,000 vehicles.Geely Automobile Holdings Ltd. has been expanding across Europe with models including the EX5 electric sport utility vehicle. Producing cars in the region would help the company avoid tariffs and shipping costs, while signaling to dealers and customers that it plans to remain in the market and provide parts and service support over the long term.Factory collaborations are common in the auto industry, allowing manufacturers to spread fixed costs and share established workforces and supplier networks. Stellantis produces Toyota Motor Corp.-branded vans at plants in France, Spain and Italy, for example, while Ford builds Volkswagen’s Amarok pickup alongside the Ranger in South Africa and its Transit Custom alongside the VW Transporter in Turkey.—With assistance from Keith Naughton.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.