Ford and Geely Holding Group have struck a pivotal deal, whereby Ford will divest a portion of its Almussafes, Spain, factory to Geely. Geely intends to produce the EX2 all-electric compact vehicle (known as Starwish) at this facility, thereby setting up a production hub in the EU. This strategic move will enable Geely to sidestep tariffs on electric vehicles imported from China and gain direct access to the European market. Meanwhile, Ford seeks to trim fixed costs by leveraging shared factory infrastructure, while maintaining employment levels and production capacity at the plant. The Spanish Prime Minister and the President of Ford Europe are slated to tour the factory on Thursday, marking the official announcement of the agreement. The two parties engaged in discussions regarding production and technology collaboration in February of this year. Notably, Geely has a history of partnerships with Renault in South Korea and Brazil.