Legacy automaker Ford (F) may have made an interesting step forward as it is currently in talks with Chinese automaker Geely Automobile Holdings (GELYF) focused on selling Geely part of a plant in Valencia, Spain. Investors seem fairly pleased by this idea, and sent Ford shares up over 2% in Wednesday afternoon’s trading.
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Word out of Geely seems to make the deal fairly done; one report noted that Geely agreed to buy the Body 3 vehicle assembly lines at Ford’s Valencia factory. Geely is considering building a car there currently known only as the 135. Some believe that this is actually the EX2, which will come in all-electric, plug-in hybrid, and straight hybrid models. Others, however, believe that Geely will instead produce a vehicle for Ford on a similar platform, where in Europe, it will be called the E2.
Ford, however, is not confirming or denying either way. One Ford rep noted, “We are constantly in talks with many companies about various topics; sometimes they materialize, sometimes they don’t. Nothing is finalized.” Such a deal would give Geely a foothold in Europe and a way to beat tariffs, while Ford gets cash and a bit of a production edge as it looks to draw more buyers in in Europe.
At Least It’s a Small Recall
Yes, Ford faced another recall effort, but this time the recall is on a surprisingly small number of vehicles. In fact, there are only 55 vehicles subject to this recall, including 2025 Ford Maverick and 2026 Ford Bronco Sport models.
This time, the recall focuses on the vehicles’ engine block heaters. The heater may actually overheat, if the vehicle is parked and the block heater is plugged in. That in turn can cause a coolant leak, damage to electrical connections, and potentially a fire under the hood. But Ford makes it clear that the issue is not an issue at all as long as the engine block heater is not plugged in. Repairs will once again fall to the dealerships, who will inspect and replace block heater elements and electrical cords where needed.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on three Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 13.72% rally in its share price over the past year, the average F price target of $13.69 per share implies 12% upside potential.
