Geely has acquired a production building at Ford's Valencia, Spain, assembly complex and plans to build the EX2 compact electric crossover there starting in 2026. The deal, reported as signed around May 6, 2026 by Automotive News, hands Geely the Body Shop 3 facility — formerly used for the Mondeo, Galaxy, and S-Max. The strategic motive is straightforward: manufacturing inside the EU lets Geely avoid the 18.8% countervailing duty the European Commission placed on Chinese-made battery electric vehicles in October 2024.
The EX2: a subcompact crossover aimed at Europe
The EX2 measures about 13.5 feet long — roughly Ford Puma territory — and is powered by a 114 hp (85 kW) motor drawing from a 39.4 kWh lithium iron phosphate (LFP) battery. Geely claims 325 km (roughly 200 miles) on the EU range-test standard (WLTP). In China the same vehicle sells as the Galaxy Xingyuan and moved around 465,000 units in 2025, making it Geely's best-selling domestic model.
The EX2 is set to reach the UK in 2026 as Geely's second model in that market after the EX5. Pricing has not been disclosed. One unresolved detail: the EX2 ships from Chinese factories with a GB/T charging port. Whether UK units will receive a native CCS2 connector or rely on an adapter has not been confirmed.
What Ford gets out of it
For Ford, the deal is partly about financial relief. European sales have been sliding, and the Valencia plant — capable of around 300,000 vehicles a year — currently builds only the Kuga. Selling off underused capacity generates cash while keeping the broader facility active.
There's also a potential upside. Industry sources cited by Autocar suggest Geely and Ford are in advanced talks about co-developing a Ford-badged crossover on Geely's modular GEA architecture — the same platform that underpins the EX2 and supports both battery-electric and plug-in hybrid powertrains. Ford previously confirmed Valencia as the site for a Focus successor; the open question is whether that future model rides a Ford-owned platform or a shared Geely one. Ford already uses Volkswagen's MEB platform for the Mustang Mach-E's European Capri and Explorer variants, so outside partnerships are not new territory.
Why this matters beyond Europe
None of this directly affects the US market — the EX2 has no announced North American plans, and Geely-branded vehicles aren't sold here. But the Valencia deal illustrates how Section 301-style tariffs and their EU equivalents are reshaping where Chinese brands choose to build. Geely's move to localize production rather than absorb import costs is the same calculation other automakers are running globally — and the results will influence which EVs eventually compete for export slots to markets like the US.
