Ford Geely Joint Venture to Make EVs in Spain
Ford Geely joint venture will run the Valencia plant to build multienergy vehicles, aiming to raise utilization, preserve jobs and reshape Europe EV supply.
KEY TAKEAWAYS
- Joint venture will begin operations in the first half of 2027; new-model production scheduled for 2028.
- Ford will own 66% and Geely 34% of the Valencia manufacturing joint venture.
- The plant will make Ford multi-energy crossovers, a Europe Bronco, continued Kuga, and two Geely electric SUVs.
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Ford Motor Company and Geely Automobile Holdings will operate Ford’s Almussafes plant in Valencia, Spain, through a joint venture, the companies said in a press release on July 23, 2026. The venture is set to begin operations in the first half of 2027, with new-model production scheduled for 2028.
Deal Terms, Product Plan, and Timing
The binding agreement establishes a joint venture with Ford holding a 66% stake and Geely 34%. The Almussafes factory will be carved out of Ford España and become part of the new industrial company, pending regulatory approvals.
The joint venture will produce three Ford models at the Valencia plant: an all-new multi-energy crossover available in fully electric, plug-in hybrid, and extended-range variants; a Europe-focused member of the Bronco family; and continued production of the Ford Kuga, including its plug-in hybrid version.
Geely will manufacture two electric SUVs under its own brand for the European market. The first, the EX5, is already sold in Europe, while a second SUV remains in development.
The companies said the partnership “secures the future of the Valencia plant, provides long-term stability and creates the potential for future high-tech manufacturing job growth.”
Capacity, Workforce, and Strategic Objectives
The Almussafes plant is underused but capable of producing about 500,000 vehicles annually. Reports indicate more than 4,000 workers at the Valencia site will transfer to the joint venture.
The deal aims to increase factory utilization and reduce costs amid intense global competition and tightening European regulations. Ford said the venture supports its plan to introduce five new passenger vehicles to European showrooms by 2029. For Geely, the joint venture provides its first European manufacturing base, helping it meet EU local-content rules and avoid tariffs on China-made electric vehicles.
The companies framed the agreement as a factory-level reset to enhance competitiveness and secure the plant’s long-term viability.
