Ford and Geely form joint venture to build EVs in Spain

Ford Motor Company ↘ 1.22% and Geely Automobile announced on Thursday an agreement to form a Europe-focused manufacturing joint venture at Ford's Almussafes plant near Valencia, Spain, aiming to revive a factory that has been running well below its potential for years.0.0.0.0:3000+1

Under the proposed ownership structure, Ford will hold 66% of the new entity and Geely 34%, according to the companies' joint press release. The joint venture will assume ownership of the production facilities and take on the Spanish workforce currently employed at the site.La Tribuna de Automoción+1

What the Plant Will Build

The partnership will add three new vehicles to the Valencia plant's lineup starting in late 2028: two electric SUVs from Geely and a multi-energy crossover from Ford built on Geely's platform, Jim Baumbick, president of Ford Europe, said at a press conference ahead of the formal announcement. Those models will join the Ford Kuga, currently the only vehicle assembled at Almussafes, and a new Bronco whose series production is scheduled to begin in February 2028 with estimated annual capacity of 183,000 units.La Tribuna de Automoción

The goal is to bring the plant's output to approximately 500,000 vehicles per year — a level that would surpass the factory's historical peak of roughly 449,000 units set in 2004. The plant has recently been producing fewer than 100,000 vehicles annually.0.0.0.0:3000+1

A Strategic Calculus for Both Sides

For Geely, manufacturing inside the European Union offers a way to sidestep the bloc's additional tariffs of up to 18.8% on Chinese-made electric vehicles. Reports since early 2026 have indicated that Geely planned to use its Global Intelligent New Energy Architecture to produce vehicles in multiple powertrain variants — hybrid, plug-in hybrid, and fully electric — at the site.english.news18a.com+2

For Ford, the deal breathes new life into a plant whose future had been uncertain. Bloomberg first reported in February that Ford executives had traveled to China to discuss sharing capacity at the Valencia facility, and by May, Spanish trade publication La Tribuna de Automoción reported that Geely had agreed to acquire the plant's idle Body 3 assembly hall.Carscoops+2

Regulatory Path and Political Backdrop

Spanish Prime Minister Pedro Sánchez visited the factory on Thursday to mark the occasion, according to Europa Press. Pending regulatory approvals, the joint venture is expected to begin operations in the first half of 2027, with the first new vehicles rolling off the line in 2028.Europa Press Motor+1

Victor Yang, senior vice president of Geely Holding Group, joined Baumbick at the announcement event in Valencia. Geely has not disclosed specific details about its two planned electric SUVs, though earlier reporting suggested one would be the compact EX2, a 4.13-meter crossover built on the GEA architecture.ChinaEVHome+1