Ford and Geely strike deal for EV production at Spanish plant, newspaper reports

For Ford, the deal would cut fixed costs through the shared use of factory infrastructure while helping to safeguard jobs and production at Almussafes, the future of which has been clouded by the phasing out of several models and its dependence on its Kuga model.

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

Reuters reported in February that Ford and Geely were in talks over a potential manufacturing and technology partnership, with Ford's Valencia plant seen as the most likely European site involved in the discussions.

Geely has already pursued overseas partnerships, including with Renault in South Korea and Brazil, as Chinese automakers seek faster access to foreign markets and a stronger profile with local governments.

"We expect other Chinese OEMs to follow suit to quickly gain access to overseas EV markets while raising their profile with local governments," Hsiao said.